Burger King plans to merge with Canuck coffee-and-doughnut chain Tim Hortons and base the company’s headquarters in Canada, where it will enjoy the kind of reasonable corporate tax structure that Democrats continue to obstruct here in the United States. And the move has provoked a fresh round of moral panic, faux patriotism and confusion.
It’s doubtful, despite much wishful thinking, that there will be much of a real backlash. Nor should there be. Most obviously, the majority of fast-food customers are probably less inclined than the petitioners of MoveOn.org to mistake high tax rates for patriotism. This kind of distorted understanding of national loyalty may work in populist politics, but not so much in markets. Few reasonable humans will meditate on Burger King’s corporate tax “inversion” — or even its Brazilian owners — as they wait for the frozen french fries to be dropped into the deep-fryer.
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