Minnesota Taxes Send Medtronics to Ireland

Medtronic Joins List of Minnesota Companies Relocating Headquarters

Medtronic has announced their intention to acquire a company as a way to move their headquarters from Minneapolis to tax-friendly Ireland to save the company billions of dollars.

“This is not good news, and every Minnesotan should be concerned with this announcement,” said Chairman Keith Downey of the Republican Party of Minnesota. “They have of course stated their commitment to keep and grow their Minnesota operations, but like Nash Finch and others before them, in these deals it is usually just a matter of time before the operations shrink too.”

While Medtronic CEO Omar Ishrak was careful not to pin the decision on any one tax or regulation, it is hard to miss the timing of their move considering the imposition of Obamacare’s medical device tax as well as state policies making it more difficult for companies to do business in Minnesota.

From Bloomberg:

“Companies are so keen to escape the U.S. system because of the combination of a high tax rate — 35 percent, the highest among developed nations — and the practice of taxing the earnings of U.S. companies’ foreign subsidiaries when the money is transferred back to the U.S. Many other nations, such as the United Kingdom, tax only domestic profits.”

From the Star Tribune:

“…the deal would allow it to better use profits made overseas. Medtronic has managed its tax expense in the past by leaving abroad the profits earned by its non-U.S. subsidiaries.”

Governor Dayton and the Democrats have sent a strong signal that Minnesota intends to grow government, raise taxes and unionize entire industries. That message now directly coincides with another of Minnesota’s largest and most prestigious Fortune 500 companies’ decision to move their headquarters out of the country.