USW Convention | April 7-10, 2025 Get registration information here
USW International President Leo W. Gerard and progressive talk show host Leslie Marshall this week discussed corporate inversion, a process by which corporations lower their tax bills by purchasing a company in a low-tax country and establishing a shell operation there.
“It’s a terrible approach that major American corporations are taking,” said Gerard. “Much of what they’re doing is just simply shopping around for countries where they can pay lower taxes.”
Companies like Walgreens are more and more frequently taking advantage of a tax loophole that allows them to reincorporate—or redefine their corporate citizenship—when they acquire a smaller company abroad. These corporations aren’t really moving to another country; they’re just using a new address that allows them to get a better tax rate.
Because they still make most of their money in the United States, however, they still rely on the American people to underwrite their businesses. For example, Medicare and Medicaid pay for a huge portion of Walgreens’s and other medical and pharmaceutical companies’ sales, meaning taxpayers are handing over millions of dollars to corporations that evade their responsibility to fully contribute to the revenues from which this money is drawn.
When these corporations shirk their civic responsibilities, then working people and their competitors must pay more to make up the difference for the cost of crucial community services likes roads, schools and police protection.
“You want your road paved?” said Gerard, “Your bridge fixed? You know who’s going to pay? We’re going to have to pay, and I just think it’s wrong.”
Click the audio to hear the full discussion.
Background Material
By clicking Sign Up you're confirming that you agree with our Terms and Conditions.
See how the USW is making a real difference in our communities and our workplaces.