Ohio Senator Sherrod Brown (pictured) has called for a Burger King boycott after the company confirmed its plan to buy Canadian donut chain Tim Hortons and relocate its headquarters to Canada.
President Obama and Congress have criticized so-called "tax inversions" because they mean a loss of tax revenue for the U.S. government.
Burger King isn't the first company to face fallout over a tax inversion. Big U.S. companies, including pharmaceutical AbbiVie and Valeant Pharmaceuticals, recently have pursued tax inversions to cut their costs. Earlier this month, Walgreen abandoned plans to pursue a tax inversion after negative publicity about the planned move.
Perhaps Senator Brown should call for a lower corporate tax rate in the U.S. rather than call for a Burger King boycott.
The United States has the highest corporate tax rate in the world at 40%. The corporate tax rate in Canada is only 26.5%.
Companies will continue to move their headquarters away from the U.S. as long as the corporate tax rate remains the highest in the world.