As part of the #Eakinomics video series, the American Action Forum (@AAF) today released a new video that explains why U.S. companies decide to move their headquarters overseas after a merger. In the #Eakinomics video, AAF President Douglas Holtz-Eakin explains what a tax inversion is, the reasons driving companies to move their headquarters, and what can be done to stop inversions.
“The U.S. corporation income tax is higher than the United Kingdom and it taxes more economic activity, putting the U.S. firm at an immediate disadvantage. When those companies decide to merge for good solid business reasons, they start running the numbers and decide it’s a better deal to be in the United Kingdom. What does this mean? Well, number one, it means we lose the headquarters. But, worse, any firm that remains in the United States is at an automatic tax disadvantage against these overseas rivals. What happens then? Products get lost. Sales get lost. Factories get lost. And the factories and the jobs end up being shipped overseas to our competitor companies,” says Holtz-Eakin in the video.
Douglas Holtz-Eakin on Fox Business Discusses the GDP
AAF President Douglas Holtz-Eakin Discusses the GDP on MSNBC's "Daily Rundown" (June 26, 2014).
Douglas Holtz-Eakin on Fox Business Discusses Student Loan Debt from AAF's Own TV Studio
Douglas Holtz-Eakin Discusses the New EPA Emissions Rule on Fox Business
Douglas Holtz-Eakin on Fox News Discussing the Regulatory Cost on Consumers
The American Action Forum hosted a Google Hangout on the policy implications of AAF's recently released national survey on higher education. The conversation focused on different higher education policy topics including: tuition costs, the role of the Federal government, college debt, alternative college programs, and a proposed government ratings program.
Douglas Holtz-Eakin Discusses the State of the Economy on "Closing Bell" (CNBC).
Pollster Glen Bolger (of Public Opinion Strategies) and Douglas Holtz-Eakin explain the education policy ramifications of AAF's new survey on higher education.
See the full poll HERE
AAF Regulatory Policy Director Sam Batkins makes AAF's vending machine compliant with the Affordable Care Act's calorie labeling regulations. He demonstrates how the vending machine regulations are redundant, expensive, and unnecessary, (April 3, 2014).