"Tax Me More" Buffett To Finance Burger King's Tax Inversion Deal

Tyler Durden's picture

President Obama would have proudly proclaimed Warren Buffett a true patriot in his bailing out of the banking system with expensive loans and his 'realization' that those earning more than $1 million should be tax-tax-taxed. However, the "Buffett Rule" appears to have one caveat... if you are making over a $1 billion, you're good to go with tax-avoidance strategies. In one of his career's most hypocritical moves Warren "tax-me-more" Buffett has decided that putting his money where his mouth is no longer makes sense.. and is funding $3billion of Burger King's "tax-inversion" takeover of Canada-based Tim Hortons. Somewhere on a golf course, a Presidential Putter is being snapped across a knee...

As WSJ notes,

The deal would create the world's third largest quick-service restaurant company, with about $23 billion in system sales and more than 18,000 restaurants in 100 countries.

 

 

The new global company will be based in Canada, though each brand will be managed independently after the deal's completion, the companies said.

But, in what appears a straight up challenge to the Obama administration's "Patriot Defense", Warren "Tax Me More" Buffett has decided it is entirely patriotic and capitalistic to sponsor tax avoidance strategies... (as Bloomberg notes)

Warren Buffett is helping to finance Burger King’s planned takeover of Tim Hortons Inc., according to people familiar with the matter, backing a buyer that would move its headquarters to Canada where corporate taxes are lower.

Buffett’s Berkshire Hathaway would invest about $3 billion for a preferred stake, said one of the people, who asked not to be identified because there wasn’t a public announcement. Tim Hortons had a market value of about $10 billion after the stock rallied yesterday on the announcement of talks with the Miami-based hamburger chain.

Buffett's comments on inversions...

“I’m not saying they’re doing anything illegal at all in following the rules on inversion,” Buffett told CNBC, according to a transcript on the business news station’s website. “I would personally change that part of the law. And other people might change the part of the law about wind tax credits, but I’m not attacking Pfizer for following the U.S. tax law.”

And the hypocrisy continues...

President Barack Obama has criticized American companies that move to other nations in search of lower corporate tax bills. Between mid-June and late July, at least five large American companies announced plans to make such a shift -- known as an inversion. That includes AbbVie Inc. and Medtronic Inc.

 

Buffett has supported Obama’s push to increase personal income taxes for the wealthiest individuals while striking deals that reduce Berkshire’s obligations to the government. This year, his company limited taxes on more than $1 billion of gains in Graham Holdings Co. stock by swapping the shares for assets owned by the former Washington Post publisher.

*  *  *

Oh but it's the syngeries...

*  *  *

But it's not just Democratic supporting oracles that are benefitting from Tax Inversion... (as Bloomberg reports)

Two top Republican lawmakers profited from a corporate tax-avoidance maneuver that the U.S. Treasury Department is seeking to curb.

 

While U.S. House Speaker John Boehner and Ways and Means Committee Chairman Dave Camp have resisted calls for a crackdown on companies adopting overseas addresses to pay lower taxes, both have made money off one of the deals. They also have investments at risk of losing value because of government action.

 

The two lawmakers reported the sale of stock in Covidien Plc within nine days of Medtronic Inc. saying it was planning a takeover, an announcement that sent Dublin-based Covidien’s shares near a 52-week high.

 

...

 

Their actions are legal, and spokesmen for both say the congressmen weren’t involved in the financial decisions and that the trades were made by their investment advisers. Still, the two lawmakers, who have more sway over tax policy than any other House members, are invested in deals that Obama and other Democrats say are wrong and unpatriotic.

 

...

 

"The opportunities for being swayed by that are legion,” said Miles Rapoport, president of Common Cause, a Washington-based group that advocates for open government. “This is not a small issue where we wonder whether legislators are acting entirely in the public interest or whether somewhere in their mind it’s about how they will fare themselves.”

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And that's your ruling-elite...

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autofixer's picture

Is Buffet going to move his Secretary to Canada so she can get a tax break?

SMG's picture

Alas no one really cares.  I'm begining to think the proles enjoy the butt raping.

BaBaBouy's picture

Nice Old Man Warren Must Make More And More Of Our Billions, As Chances Are He Can Take The Money With Him When He Kicks The Proverbial Ice Bucket...

Hippocratic Oaf's picture

Oracle was a bad date huh Zero?

Came in your mouth and never called back.

How's it feel you fuck. Thanks for all the 'help' you gave him.

asshole!

espirit's picture

Changed the tune from 'I didn't know' to...

"I didn't see that one cumming."

mvsjcl's picture

Funny how "corporation people" can freely move to other countries to avoid taxes, but not "normal people."

General Decline's picture

Did I miss the caption contest post for that gay photo??

Obama to Buffet: "I'm usually the one 'working in the receiving department' "

WarHorse's picture

Uncle Warren - one of the biggest hypocrites on the planet.  FUCK YOU DUDE

Againstthelie's picture

All that became only possible with the monstrous lie of a "free press".

Now since the internet has broken the money master's information monopoly their 200 year old global palace of lies and hypocrisy is beginning to fall apart.

mkkby's picture

Fuck Burger King and that asshole Buffet.  Bringing pink slime burgers to Canada.  I hope they burn every site.

Dr Strangemember's picture

Didn't realize they were into the choking game.  How naughty!!!!  : o

zuuma's picture

Like good sudafed at walgreens, the best things at BK must be ordered under the counter.

Nothing gets the heartlock going like a Tripple Whopper with cheese. Not on the menu, generally.

Enough calories to feed an Ethiopian family for a week.

I don't care who owns BK, because I can always look down and see that it

"takes two hands to handle my Whopper"

ThroxxOfVron's picture

Funny how they don't really pick up and move -just get a new P.O. box.

Also notice that there is no charge for them relinquishing there citizenship and they still have access to all the benefits of citizens despite their change of status..

Time for the Tax Peasants to Individually Incorporate and write up merger documents with foreign nationals to opt out of the DC shakedown.

StandardDeviant's picture

"Normal people" can, and do.

Oh, wait -- unless they're Americans, in which case they will be pursued to the end of their days by the Nazgul-- er, IRS.  That's exceptionalism for you.

Divided States of America's picture

The new generation of jews who will be dominating the world (and raping the sheeps wallet) are being groomed now. Read the below from somewhere.

Burger King is run by children. The CEO, Daniel Schwartz, is 32, the CFO, Josh Kobza, is 28, Alexandre Macedo, president of North American operations, is 36, and Sami Siddiqui, head of investor relations, is 29. The average age of an incoming CEO at a company in the S&P 500 was 53 last year. How it happened was a Brazilian private equity firm called 3G Capital took over the company. The "children" come from that firm, and they purged 375 managers from the Miami headquarters and 275 more around the world, got rid of the corporate jet, mahogany executive offices, and annual parties, instituted a Spartan cost-cutting regime, and sold off restaurants to partners.

Dr. Venkman's picture

i was feeling pretty good about my career trajectory until about 10:05 today. Thanks.

BaBaBouy's picture

Merica Is Being Raped...
There Will Be Nothing Left For The Masses Except Fast Food, Police, Mega Military And Computer Trading...

LasVegasDave's picture

Ah, the Yids are to blame, angle.

Always hated that BK Fish sammich

Just another conspiracy to poison the goyim, I guess....

 

Bay of Pigs's picture

I guess pointing out who actually runs the company bothers you? You seem to have a problem with facts.

You certainly are one of the more clueless fucks to ever post here at ZH.

sessinpo's picture

Here is a fact for you. I hardly ever eat at BK. I don't care who runs it, the children or whatever ethnic group. And no one forces you to go there. That is a fact.

I quit being a bitch by bitching about things I have no control over.

LasVegasDave's picture

I guess sarcasm and humor are qualities you are oblivious to.

Seriously, go blow an 80 year old dictator (unless he's a Yid)

Bunghole's picture

You need to work on your sarcasm and humor skills.

They suck.

 

JRobby's picture

You were hammered for being an imbecile.

 

clade7's picture

He's on to something here...he can mix that shitty 'Sees' candy in with a bunch of his carpet fibres and come up with a whole new Burger King treat!

Uncle Warrens "Carpet Muncher Delight" or some such...

p00k1e's picture

Of course you are correct.

In other words Buffet tells the U.S. serfs, “If you’re too stupid to tax me, well, be poor and eat Bar-S ‘meat’.  Bwahahahaha!!!  I’ll sell it to you.”

sharonsj's picture

Not true.  You should read comments on other sites--the majority are calling for a boycott.

lordylord's picture

Government is the disease.  Everything else is just a symptom.  We discovered the cure in 1776.  Let's pray that a 2nd dose is administered to the tyrants soon.

p00k1e's picture

'What you mean, "we," Kemo Sabe?'

 

If you take responsibility for 1776 you must also accept responsibility for reparations. 

Hopeless for Change's picture

Reparations have been paid a million times over, through Affirmative Action and Free Shit.

armageddon addahere's picture

America paid in blood and treasure 1861 - 1865

Urshilikai's picture

You do realize that the government is also the only entity that can reasonably stand up to corporate oppression, price fixing, unsafe working conditions, crime, war, etc?

It might not be working for the people and by the people very well right now but you're a complete moron to paint all forms of government in a bad light.

whatsinaname's picture

I dont know about the economics of this deal, but everytime I visited Canada, I have been to a Tim Horton's and their food and coffee is far superior to a BK here. I dont know how this deal is going to impact the overall company. Will miss the original TH for sure. BK is sure to water it down a bit.

Cpl Hicks's picture

You went to Canada and had a doughnut and coffee?

Maybe I'll put that on my travel agenda.

plane jain's picture

Agree...Tim's nearly every morning when we visit there.  The US ones are not quite as good.  Still better than BK.  

Farewell Timmy, it's been good to know you.

dicksburnt's picture

inversions:  american based corps fleeing the sinking ship!  imagine what this place is going to look like when the tax receipts are a third of what they are today?

buzzardsluck's picture

Like that sissy could manage to even bend a golf shaft using his knee.

Gold Eyed Cat's picture

Obama attempts to snap putter over his knee... putter survives. Obama's frail, AIDS-weakened leg breaks.

NoDebt's picture

"Somewhere on a golf course, a Presidential Putter is being snapped across a knee..."

I very much doubt that.  That would presuppose he actually gives a damn, which he obviously doesn't unless it's politicially expedient to appear so in front of a TV camera and teleprompter.

Mr Pink's picture

Obozo doesn't care because he knows the sheep don't care that they are being fleeced. It's almost football season !!

lordylord's picture

Less tax revenue means more borrowing and printing.  The middle class will pay for this through inflation.  Obama is DELIGHTED.

Dr. Venkman's picture

it also presupposes that it would in fact be the putter that snaps, and not the First Femur.

Cpl Hicks's picture

Michelle is highly offended by that slur.

Dr. Venkman's picture

on the plus side, I just had a flashback regarding Bo Jackson.

 

https://www.youtube.com/watch?v=sepi4pH2_SQ

BandGap's picture

Hold the pickle, hold the lettuce, special tax breaks won't upset US.

Have it your way, have it your way!

Billy Sol Estes's picture

Wake up with the King.... of hypocrisy.

BandGap's picture

Top 5 creepiest commercials of all time.

Grinder74's picture

"a Presidential Putter is being snapped across a knee..."

Is that what the kids are calling teh ghey nowadays?