Wal-Mart Files Desperate Lawsuit Because of Absurd Tax
In the midst of the Holiday shopping
season, retail giant, Wal-Mart is looking to squeeze out earnings anyway
possible. Lately, things aren’t so rosy at Wal-Mart.
The push for higher wages has hurt
their profit margins and caused them to put the hammer to suppliers. Now Wal-Mart is even going after broke, bankrupt
countries:
Well don’t look now, but a beleaguered Wal-Mart is suing a beleaguered
Puerto Rico after the latter’s attempt to lift government revenue by raising
taxes pushed the company’s tax burden in the commonwealth to nearly 92% of net
income.
As Bloomberg
reports, “Puerto Rico’s Act 72-2015
increases to 6.5 percent from 2 percent the tax on goods imported from offshore
affiliates to local companies with gross revenues of more than $2.75 billion.”
Wal-Mart “biggest private employer
and hands over more sales tax to the island government than any other
business,” Bloomberg continues, before noting that the company is “asking a
federal judge to declare the new measure unconstitutional and block its
enforcement.”
“The new
levy raised the estimated cumulative income tax on Wal-Mart Puerto Rico Inc. to
an astonishing and unsustainable 91.5% of its net income!”, the company exclaimed, in a complaint filed Friday in San
Juan. Wow, 91.5% tax on corporate net
income…
Bernie Sanders would love how Puerto
Rico does business.
Comments
The cost
of government in Puerto Rico is off the charts, so the government is raising
taxes. Wal-Mart will likely close their
stores in Puerto Rico if they can’t claw back enough of this tax hike to stay
in business.
Puerto
Rico is in bad shape. Their economy is
way down, government costs too much and their unemployment is way up. If they can replace the food by producing it
locally, without Wal-Mart, that will work.
If not, the people will suffer.
They really need to cut all non-essential government spending.
Norb
Leahy, Dunwoody GA Tea Party Leader
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