Mark Cuban, outspoken owner of the Dallas Mavericks, TV shark and luckiest Internet bubble buyout recipient ever made news with a tweet early this morning.
If I own stock in your company and you move offshore for tax reasons I'm selling your stock. There are enough investment choices here
— Mark Cuban (@mcuban) July 25, 2014
Cuban is talking about corporate inversions. That’s where a large company buys a smaller company then adopts its favorable headquarters location for tax purposes.
It doesn’t move. It just declares this new place its HQ. By virtue of this paper shuffling they stop paying most federal taxes!
Cuban will sell their stock.
I can’t do that. I own no common stock. However, I pledge to stop supporting businesses that do this.
I’m talking to you Walgreens!
From the Wall Street Journal:
Walgreen is currently thinking about leaving American shores, as part a plan to buy the rest of Alliance Boots GmbH, which operates a U.K. drugstore chain and is based in Switzerland. The move could help Walgreen lower its U.S. tax bill saving the company hundreds of millions of dollars a year—money that wouldn’t flow into the U.S. Treasury.
That’s my prescription bottle at the top of this entry. Walgreens–it will be my last and I’ll absolutely join the boycott of your stores which will surely follow.
I’m not concerned whether your move is legal. I just know it’s wrong.