A tough new ad from Democratic Sen. Al Franken accuses his Republican opponent’s business of avoiding taxes by headquartering overseas. But Republican Mike McFadden calls the ad “ridiculous” and “full of lies.” The ad marks a new Franken campaign strategy: directly attack McFadden for his business dealings.
Years before Burger King sized up a Canadian headquarters in a hunt for lower taxes, Republican U.S. Senate candidate Mike McFadden’s investment firm was involved in a merger that moved an American pharmaceutical company to Ireland and significantly dropped its tax rate. McFadden’s Minnesota-based firm made more than $11 million, according to public filings.
Republican Senate candidate Mike McFadden is defending his investment banking firm’s involvement in a deal that led a U.S. company overseas. The so-called tax inversion finalized in 2012 involved a U.S. pharmaceutical company merging with a competitor and moving its tax residence to Ireland, where corporate tax rates are much lower.
Burger King’s stock jumped 21 percent Monday on the news the company is in talks to merge with Canadian-based Tim Horton’s. The move is called tax inversion, a change in the location of its headquarters that would let the fast-food company pay fewer taxes in the U.S.