Sen. Sherrod BrownSherrod BrownMajor progressive group unveils first 2018 Senate endorsements Congressional leaders unite to protect consumers Mnuchin weathers stormy confirmation hearing MORE (D-Ohio) is urging consumers to boycott Burger King over reports that the fast food chain is eyeing a tax-cutting move to Canada.
Brown, an outspoken corporate critic, said people hankering for a burger should head to Wendy’s or White Castle, two Ohio-based chains that aren’t looking to shrink their tax bill via a so-called “corporate inversion.”
Burger King is discussing a merger with the Canadian food chain Tim Hortons, which would allow the burger giant to move its headquarters up north to take advantage of Canada’s 15 percent corporate tax rate, well below the 35 percent rate in the United States.
The move, if it comes through, would be the latest in the growing inversion trend, which has U.S. companies acquiring or merging with foreign counterparts with an eye toward avoiding higher U.S. taxes.
The move has come under heavy political criticism, and President Obama has said he is looking at ways to curb the deals through executive action.
Brown, a member of the Senate Finance Committee who could take over the Banking Committee in the next Congress, said Monday that Congress should push for a minimum global corporate tax rate.
Setting a country-by-country minimum tax base would help keep American companies in the U.S. and entice further investment, and also discourage countries from trying to slash their rates as low as possible, he argued. He also called on U.S. policymakers to lower their rate, which now stands at the highest level in the world.
“This kind of common sense reform will close down tax havens that cost our country revenue and cost American jobs. Lowering the statutory corporate tax rate would put companies on a level playing field with foreign competitors and reduce the incentive for them to shift jobs and profits overseas. Creating a global minimum tax rate will increase investment in the United States, raise revenue, and prevent a global race-to-the-bottom,” he said.