Signs of the Coming TaxApocalypse

by Mr Juggles

Business Fries?When otherwise smart people start agreeing with the current administration that abrogating the rule of law and long-standing investor protections is a worth-while activity, we are in trouble and the type of trouble starts in “Z” and ends in “BABWE”. Specifically, we have reached the point where it is more attractive to invest in Canada or France. Wow. Never thought I would say that, but I will now say it again — it is more attractive to invest in Canada or France.

Vistaprint (NASD: VPRT) is the “new economy.” They got their start as a company printing business cards and flyers for small and medium-sized businesses. Now they also offer many other products that SMEs like and just launched a email marketing service to let SMEs reach their customers cost-effectively. This is a company that, like Amazon (NASD: AMZN), grows rapidly through innovation and automation. This is a modern business. And because Vistaprint is an online business, it could be run from just about anywhere. In fact, it will be soon due to a move that should serve as a wake-up call to America: Vistaprint is moving its domicile to the Netherlands and its headquarters and CEO are moving to France (?!?!). Why? They think it’s a better place to do business. France!

Here are the reasons Vistaprint thinks Paris is a better place to do business (taken directly from their quarterly report):

  • Time zone centrality and flight connections
  • Significant and growing Vistaprint operations in Europe
  • Corporate history: founded in Paris; first manufacturing in the Netherlends
  • Highly stable economic, political, and regulatory environment
  • Commercial relationships and tax treaties with countries around the world

Recommendation: When US politicians start protecting the unions in dying industries, punishing investors who provide capital, and making life difficult for innovative young businesses to the extent that they start favoring France for its stable economic, political, and regulatory environment…then the US is officially on the road to the TaxApocalypse. Buy non-US assets and currencies in countries with stable economies and political systems.*

*if you find one of these, please alert us immediately, TIA.

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