Wednesday, June 18, 2014

MN governor cheers relocation of major corporation HQ to … Ireland « Hot Air

MN governor cheers relocation of major corporation HQ to … Ireland « Hot Air: "Two different Republican contenders for governor, Marty Seifert and Scott Honour, both blasted Dayton’s support for the move. Honour called it a “slap in the face,” and evidence that “tax and regulatory policies are chasing away Minnesota’s best companies.” Seifert blamed both ObamaCare — which has a tax on medical devices — and Dayton’s economic policies for the decision, calling it “a sad day” for Minnesota’s economy.

Honour’s probably the closest to the truth. If Medtronic is indeed going to add 1,000 jobs, it’s not because they’re transferring the corporate flag to Ireland, but either regardless or in spite of the move. ObamaCare might have an impact on hiring at Medtronic that’s outsized from other sectors, but moving the corporate HQ to Ireland won’t change that. The medical device tax applies to their products no matter where they’re headquartered.

What prompted Medtronic to move? Bloomberg’s Leonid Bershidsky lays the blame on federal tax and regulatory policies, and says the move does do damage to the Minnesota and US economy. If the US would fix its corporate tax policies, Bershidsky argues, we’d see a lot less of this rational response to the perverse incentives set up by the current system. Instead, the US seems ready to make the situation worse."

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