http://www.cbc.ca/news/business/tim-hortons-burger-king-reaction-u-s-cracks-down-on-tax-inversions-1.2774913

On 23 Sep, 2014, the merger of Tim Hortons and Burger King was doubted for tax inversion.

This news also introduces the definition of Tax Inversion. It cites that:“ A tax inversion works when a U.S. business merges with or is acquired by a foreign company in a country with a lower tax rate. The new company then pays most of its global taxes in the jurisdiction with the lower rate, thereby shielding profits from taxation they used to have to pay.( cbcnews  Sep 23, 2014)”(4)

According to the figures in the KPMG website, Canada’s corporation tax rates is 26.5% in 2014 while that is 40% in the United States.(1) And the Burger King’s revenue in the end of 2013 reached to $1,146.3 million USD while its net income reached to $233.7 million USD, which is searched from the financial statement in businessweek. (2)If the Burger King relocates it company to Canada, it can release a bulk of tax burden( roughly at $31.55 million USD).

This might be a strategy for the Burger King to cut its total costs and become more profitable.

However Obama urged for “economic patriotism”(3) from the U.S. companies, corporation inversion is still a common phenomenon in America.

Reference list:

(1)”Canada’s corporation tax rates is 26.5% in 2014 while that is 40% in the United States.” http://www.kpmg.com/global/en/services/tax/tax-tools-and-resources/pages/corporate-tax-rates-table.aspx

(2) “$1,146.3 million” & “$233.7 million”

http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=BKW

(3) “economic patriotism”

http://www.cbc.ca/news/business/tim-hortons-burger-king-reaction-u-s-cracks-down-on-tax-inversions-1.2774913

(4)”A tax inversion works when a U.S. business merges with or is acquired by a foreign company in a country with a lower tax rate. The new company then pays most of its global taxes in the jurisdiction with the lower rate, thereby shielding profits from taxation they used to have to pay. ”

http://www.cbc.ca/news/business/tim-hortons-burger-king-reaction-u-s-cracks-down-on-tax-inversions-1.2774913

http://www.thestar.com/opinion/commentary/2014/09/07/is_parttime_work_the_new_normal_goar.html

Canadian labor market shows a sign of part-time employment. Since last autumn, Canada has created 50,000 part-time jobs but lost 20,000 full-time positions.

Doing a part-time job may has some negative impacts for labors. For example, they may not be offered the health insurance by the employers. So there is less work security. And part- time workers are always regarded as unemployed. They do not claim to government that they get jobs, however they are part-time. So government grants the unemployment welfare to them, and they do not need to pay taxation. Hence, there is a large withdraw in government budget balance.

On the other hand, the part- time jobs usually need low skill levels, so the work may be low productivity. With an 50,000 increase in part-time jobs but 20,000 decline in the full-time, the national total productivity might be pulled down.

However, it does have some positive aspects. As mentioned above, part-time jobs require low skills, and it is capable for most of workers. So it can release the unemployment pressure to some extent, while full-time jobs need high level of skills and knowledge. And in statistic, it does work, the unemployment rate does decline which shown on the picture.

according to the Statistics Canada:
And what if retirees do the most of increased part-time jobs? They might be more productive and have more experience than freshmen. So the national productivity would increase and the market allocates resources more efficiently.

reference list:

news from:http://www.thestar.com/opinion/commentary/2014/09/07/is_parttime_work_the_new_normal_goar.html

chart: http://www.statcan.gc.ca/daily-quotidien/140905/dq140905a-eng.htm?HPA

http://www.bbc.com/news/business-29282407

Extract:

Shares in the company made their debut in the US at $92.70 (£57), after being priced at $68 late on Thursday. Alibaba operates a series of online marketplaces in China and elsewhere, handling more transactions than Amazon and eBay combined. It is responsible for more than 80% of online e-commerce in China.( BBC news, accessed Sept. 20th, 2014)

Taobao is the most famous part of Alibaba in China. People in China do know Taobao, the online shopping medium. Just in 11.11, 2013, Singles’ Day, Taobao created a grand record—the daily turnover researched to $8 billion( Dailymail by Simon Tomlinson 11 November 2013 ), which is about 50% the daily gross turnover of China. And this medium rebuilds Chinese people’s shopping styles.

And the Alipay, a third-party online payment platform of Alibaba, now  embedded in our daily life. Consumers can use it to pay for bills, taxi payments, credit card, in-store purchase, etc. I use it at least 3 times a week.

As for the popularity of  online shopping, e-commerce grows faster than any other field in China. Everyone wants to take a piece of cake in this market. And Alibaba also has many competitors, e.g. JD.COM, and dangling.com. But Taobao accounts for around 80%, legal monopoly in this field, referring to the chart in the Baidu Wenku. Why do consumers prefer to choose Taobao? Branding may be biggest factor; as for me, the first idea to buy something, is Taobao, branding for more choices and lower prices.

reference list

“Taobao accounts for around 80%, legal monopoly in this field, referring to the chart in the Baidu Wenku ” http://wenku.baidu.com/view/39d57869561252d380eb6e45.html 

“the daily turnover researched to $8 billion”

http://www.dailymail.co.uk/news/article-2500413/Worlds-biggest-shopping-spree-China-set-spend-8BILLION-Singles-Day-loveless-persuaded-console-retail-therapy.html

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