Sunday, August 30, 2009
Cooper Industries (CBE) is being removed from the S&P 500 Index after the close of trading on September 8th. S&P Midcap 400 constituent, Airgas (ARG), will replace Cooper.
CBE becomes another of what is becoming a longer list of U.S. firms that are changing their domicile to more tax friendly foreign countries. As I noted in an earlier post in July, S&P 500 Companies Increase Foreign Sales and Foreign Taxes Paid, many multinational U.S. companies are increasingly paying higher foreign taxes due to a company generating more sales outside the U.S. With Congress wanting to institute higher taxes on U.S. firms, many are changing their domicile. The additional taxes proposed for U.S. companies is on top of the U.S. already having some of the highest tax rates compared to other countries around the world.