Big Soda Shafts America — Joseph DiStefano of Philly.com notes in his story about Big Soda’s response to Philadelphia’s proposed soft-drink tax that Coca-Cola Co.’s tax rate is now less than 25 percent of its income while in the late ’90s it was 36 percent.
PepsiCo dropped from 34 percent to 23 percent.
Why?
In Coke’s case, it is because it has shifted plants and earnings to lower-tax countries and accepted “tax incentive grants” from nations like Brazil and Swaziland.
Pepsi baldly explained their strategy in 2005 declaring “We intend to continue to reinvest earnings outside the U.S.”
The Donald is looking pretty good right now.
By the way hipsters, these guys are pikers compared to Apple.