A American corporation changes it corporate charter and becomes a subsidiary of a foreign Corp., and re-domiciles its corporation charter into that foreign country, say Switzerland and pays income taxes to that country.
The new parent company e.x WBAD(Switzerland incorporation) now becomes the parent corporation.
Wbad now goes out and borrows billions against Walgreens assets, and takes this money and invests in new out of USA business. All foreign profits generated from Wbad now go back into Switzerland and taxes are not paid in the U.S.A on this revenue they are paid to Switzerland.
Walgreens USA is now Carrying this Debt on its books and is by law allowed to deduct this debt from its USA income taxes as any income made out side of the USA is not Taxable.
This Leaves the rest of us Citizens picking up The tab for USA government services. Bridges, military, clean water, etc..
With Walgreens loaded with USA debt they could pay Zero taxes on its USA income.. This has been studied and that is what companies do after a corporate inversion.. The selling price goes down as debt is added to the balance sheets and this leverage changes it bond/credit ratings for several years until this debt is repaid, all the while the Company managers are making millions.. This is a shareholder scam as dividends are reduced due to debt, and the bankers and instutions get hundreds of millions in fees. So now you see why Goldman Sachs and Janus are in favor of this move.
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