The growing gap between corporate greed and corporate responsibility (remember that concept?) is finally getting to billionaire Mark Cuban.
The owner of the NBA’s Dallas Mavericks, Landmark Theatres, and Magnolia Pictures, and the chairman of the HDTV cable network AXS TV, appears to be one of the few remaining rich Americans, who, in the tradition of Warren Buffett, see more than just the bottom line.
“When companies move off shore to save on taxes, you and I make up the tax shortfall elsewhere, ” Billionaire Marc Cuban Tweeted on Friday, adding, “sell those stocks and they won’t move.”
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Earlier, he threatened: “If I own stock in your company and you move offshore for tax reasons I’m selling your stock. There are enough investment choices here.”
Cuban’s angry tweets came the day after President Obama expressed his opposition to inversion, a tax-avoidance scheme, in which US companies merges with or creates a foreign company, then moves its headquarters abroad to avoid paying US taxes.
The Obama administration is pressuring Congress to close this loophole, which according to CNBC will cost the government some $20 billion over the coming 10 years.
Cuban followed with these two bits of advise:
1) Are you willing to call your broker or fund and tell them to sell companies that increase your tax bill by moving overseas?
2) make sure to check the tax consequences of selling before you make a decision.