Pay Talent to Keep Talent

http://blogs.wsj.com/moneybeat/2014/07/08/abbvie-ups-bid-for-shire-as-inversion-premiums-keep-rising/

If the U.S. wants to keep corporations’ situs in the U.S., it is going to have to do something proactive with the corporate tax rate.  The cost/benefit analysis of lowering the corporate tax rate may compare the lost corporate tax amount versus the increased capital gains tax earned from shareholders who trade stock with a higher value due to companies that stayed in the U.S. and are more profitable due to a lower corporate tax.  The likely higher individual income taxes collected of employees that stay in the U.S. with the company that decided to stay in the U.S. will also have to be allocated to the benefit column of the comparison.  Studying Jersey, the U.K. dependency that corporations are looking toward, may also help our officials determine what could fill the U.S. revenue gap from lower corporate taxes.

What still rings true, though, is that change is inevitable, and one has to entice talent to keep it.

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