This is real money. You are the most important part of the show. Tweet me or hit me up at facebook drought come. The fall out for burger king to tie out tim hortons is brewing into a Public Relations nightmare. Dick durbin blasted the 11. 4 billion deal. He said today how disappointed he is in, quote, burger kings decision to renounce its american citizenship. Billionaire investor warren buffet whose company is financing part of the deal is now in damage control over the tax breaks that burger king will get by becoming a canadian company. Buffet, as you recall, is famous for calling on americas wealthy to pay their fair share to your honor sam. His participation in this deal puts him in a wal awkward position. Burger king is the latest of a company who purchases a foreign firm and then moves into its headquarters. They continue to operate in america but by doing so they take advantage of lower tax rates outside of the United States. Burger king denies that this deal is about denying uncle sam its due. It says hes merging with tim horton because its opening new business vistas for the company. Still inversions let companies transfer money that is made outside of the United States to the Parent Company without paying additional u. S. Taxes on income that is generated abroad. That is very important for a company like burger king that plans to expand its business overseas. Now, burger king will be able to use the extra money to purchase new assets or pay out stock dividends so its hai shareholders, thats why investors like inverts. Like it or not america is going to see more Companies Like burger king who choose to ditch uncle sam, and we companies we consider quintessential american are already anything but. At least 75 large u. S. Corporations have moved their address abroad. Some of those companies have my profile names. Many have moved to places bike bermuda and Cayman Islands where there is no Corporate Income tax. One example is th the Consulting Service price water house. And the under wear manufacturer fruit of the loom moved its Corporate Headquarters to the Cayman Islands in 1998. But lately more u. S. Companies are using a technique called inversion, and it could wind up costing the u. S. 20 billion in lost tax revenue over the next deck kate, inversion is where an u. S. Company legally arranges to become the subsidiary of a foreignbased company and thus pays taxes to that foreign country instead of the u. S. One of those companies the American Icon sara lee merged into 2012 with de master blenders an International Coffee and tea company and now has its headquarters in the netherlands. Chiquita brands and medtronics will move their headquarters to ireland when their inversions are complete. They say theyre announcing their citizenship to avoid the tax rate, the highest in the world. The critics say that Companies Often use loops holes to avoid paying the full 35 Corporate Income tax. And that it invert and relocate abroad they still enjoy all the benefits of u. S. Laws. The critics go on to say if congress reduces the u. S. Corporate tax rate it will only rob the u. S. Of even more tax revenue and ignite an arms race with other countries which will lower their tax rates, too. For now policy makessers are exploring their options and embracing a bigger wave of corporate defections and inversions. Research of companies that have left have significantly increased performance. Studying inversion deals for more than a decade, she joins us from chicago to plain more. Professor, thank you so much for being with us. This burger king deal, theyre telling everyone it is not just about inversion in fact, theyre saying its not about inversion at all. Is it or isnt it. This is an interesting deal because there are very Good Business reasons for burger king and tim hortons to combine. So weve got a Business Combination thats motivated by good substantial business synergies, but we have a structure that is formulated purely for tax considerations. So its both. What is the benefit . If it were not a tax benefit, why would a company that has been headquartered in the United States for all of its history choose not to be . Well, remember that tim hortons was owned for a long time by wendys. Its clear to see that there are advantages to a Company Whose primary focus is breakfast with a Company Whose focus is lunch and dinner. Burger king had some gaps in its breakfast presentation to the market. And so tim hortons offers a really Good Business synergy with burger king. Lets talk about the idea that the critics say the u. S. Studies say that the u. S. Stands to lose a lot of tax revenue if this idea of inversions accelerates. But others say its going to accelerates unless the u. S. Changes its tax laws. What are the tax laws in question that need to be changed in order to stop companies from taking advantage of that part of things . Well, first let me talk about the way that were structured. So the u. S. Stands alone among the major industrialized nations in taxing on a residents basis. If you are an u. S. Company, if your headquarters is here and youre a resident in the u. S. That means that you must pay Corporate Tax on all the money that you earn no matter where its earned across the globe. If you are in any other industrialeddize country, you a pay tax based on source. Tim hortons is in canada, and it pays tax in the jurisdiction where is it operates. Burger king is in the United States, so it pays tax on all its income no matter where its earned. So when they combine the joint entity would not want to subject tim hortons to tax globally. So theyre choosing to combine under a corporation thats head quartered in canada so they will be in a territorial regime. So we constantly hear largely from conservatives on tv that the tax rate in the United States, Corporate Tax rate is too high. Canada has a very low Corporate Tax rate, thats what its about. The u. S. Lowers its Corporate Tax rate this wont happen. But youre talking about shifting from a two different types of tax regimes. Thats right. Ali, the o. That the Corporate Tax rate is too high simply doesnt stand up to the evidence because belgiums tax rate is 34 , almost the exact same as the United States, weve got companies incidentally, companies owned by the same shareholders a 3 g. Theits not the tax rate but how we tax corporate business in this country. What a good discussion and thank you for clarifying that. Professor at the university of illinois at urbna champaign. The. In ferguson, missouri, the majority of residents are black. The majority of voters are white. Why are africanamerican voters staying away from the polls . And in gaza and israel, a tenuous ceasefire takes hold. This is the last time u. N. Plans to foot the bill. Even before gazas latest violence the palestinian enclave suffered from unemployment in excess of 40 . 70 of its citizens already relied on some form of humanitarian aid and that was before the damage rocked by a 50 day military offensive that left scores dead and its infrastructure in ruins. Initial estimates put the cause of rebuilding gaza the 6 billion or more. We have have more ahead on the reconstruction. In just 50 days much of gaza was destroyed. The morning after peace return here the dust was literally settling. 1. 8million gazaens facing the worst destruction. This would be a great Business Opportunity for this but his building has been hit. We need to get the materials we need to repair the factory, metals, cement, and other materials. Easing rules so reconstruction can begin but similar measures were promised in the 2012 ceasefire. They were rarely far reaching enough to make construction in gaza any easier. Money from the International Community will be needed to rebuild gaza but this wont be the first time. Again and again here Infrastructure Projects paid for by foreign donations have been bombed by israel. The Yasser ArafatInternational Airport was a multi Million Dollar initiative paid for by the International Community. This airport was to International Standards just over there where that dome is. That was the vip section of the airport. Beyond that was the runway. It opened in 1998 but it was only opened for a few years before it was bombed by the israelis, and it has never been functional since. Three times over the last six years gaza has needed reconstruction after conflict. This time says the u. N. Is the last time. Were all tired of this cycle. This must be the last time that we are repairing gaza. And even before the war there were plenty of things to do here. 62 without work. Young people without hope. And 95 without portable water. But without a real political solution to the palestinianisraeli conflict people in gaza will end up rebuilding their lives from scratch, many more times. Jane ferguson, al jazeera, gaza. Well, the open ended ceasefire between the israelis and palestinians in gaza appears to be holding for now. As part of the agreement israel agreed to ease air and land constraints in gaza. I asked if the goal was to bring israel back to the table despite years of fruitless negotiations. Heres what he told me. No. This time we have a plan, and this plan is yes or no. They havent done it so far. They havent done it so far. They continue the sentiment activities, and our legal status now in the United Nations i in 2012, we are a state under occupation. We are exactly like korea, philippines, belgium, holland, norway, france, in the Second World War under the japanese and german occupations. So israel has a choice now. The choice settlements or peace. They cant have both. Occupation or peace. They cannot have both. Either they become full responsible authority for palestinians as occupying power or they allow this to take palestinians to independence within a very specified time frame within the International Community. You can see much more of my conversation with him tonight on consider this. All week long im filling in for antonio mora. Thats 7 00 pacific and 10 00 p. M. Eastern tonight. We look at whether hijackers attacked jp more ban chase, hackers, im sorry. The attack far beyond the capability of ordinary criminal hackers cooler to Security Experts cited by bloomberg. They say that the hacking incident led to the loss of Sensitive Data and it may have been caused by malicious computer code known as mallware. A jp morgan spokesperson did not confirm the reports. Twothirds of the ferguson, missouri, population is black, you wouldnt be able to tell that on voter days. We have been talking about the dramatic events that unfolded in ferguson, missouri, in august. Thats when unarmed 18yearold Michael Brown was shot and killed. Twothirds of the citys residents are black. But five of the six members of the city couple are white. The towns police force is also mostly white. In last years elections 6 of blacks turned out to vote. While only 17 of whites voted last year. Its a different turn out where youre beaten over the head in ads. 54 were blacks and 55 whites, and that holds true not just for ferguson but nationally black voter turnout exceeded white voter nationally. 66. 2 for blacks and 64. 1 for whites. Thats for president ial election. But its way more important to show up for municipal elections roland, a syndicated columnist. You and i tweeted we were going to be on together, and someone tweeted to say, are you saying that the color of their skin, these white City Councils in ferguson, missouri, youre saying that theyre not qualified because of the color of their skin . Thats not the argument. No, the arguments not that. If you have 67 of africanamericans in a city you would think that you would have more representation on the city council, on the school board, but that is not the case. Ali, i call this invisible shackles. That is there are a lot of people who simply believe their vote doesnt matter. They believe their vote will not make a difference. In a town of 21,000 people, this tells me that you do not have a real structure there when it comes to voter education. We see this all across the country. Well see significant voters turn out or vote in the president ial election but then when you go to u. S. Senator, smaller number. Congressional races, smaller. When you go down the ballot it drops down big time so people focus on the big races. You show up and go right to the ballot box, but they vote for the president. Right, this happens across the country. The majority of people say their lives are more impacted by what happens o on the local level. When talking to a group of young men. How many of you would like to be on the jury when officer Darren Wilson would be indicted. He said, you know i cant serve jury duty if youre not registered to vote. They stopped in their track. Mean people feel they cant make a difference. Look at what theyre doing, but look at the rules. The income o comes from caught fees and fines. Three warrants to every household in ferguson, and that says what whole lot. But thats the way the superb ban thingsuburban things come in. This is what a lot of africanamericans were complaining. They feel like theyre disproportionate stopped, traffic stops, three warrants, outstanding per house. Weve heard people say this is how the town raises money. But the power is in your hands. Who you elect as cit city and town representatives, they hire the police chief, the fire chief. This is why you need to have organization, youre going to see thati think youre going to see people there finally realize they cant be violent. Thecant be silent, they cant complain. It means that you have to stand up and use the power that is in your hands. It doesnt mean that the city council has to be twothirds black. It just means the powers are in your hands. Lets see if whites still win i want to see if more white folks vote. I want to see where those precincts come from. If youre 67 black if you look at those numbers you probably had an organized effort when it came to white folks who live in ferguson, so you dont need a large number because africanamericans are not turning out. Seize the power. Let me ask you this, are a lot of africanamericans who moved out of the st. Louis city, to the county, theyre republicanners in ferguson, missouri, as opposed to more white residents who are homeowners, does that make a difference in feeling connected to your community and showing up for elections. It does make a difference. Homeowners pay property taxes. When you own a home you feel like youre a stake holder and you have a different view of the community as opposed to someone who rents. That play as role as well. One of the things ive been seeing when you look at trayvon martin, jordan davis and this case here at some point we have to go from a moment to a movement. I believe what this has exposed is not just peoples anger towards the Police Department and also the encompetency tense of the city, its exposing people who dont believe they matter. They have to be told and instructed you do matter. Guess what, you have to show up. You have to go to council meetings, go to hearings, get registered, care about your neighborhood, and the most important thing. Voting is the end of one process and the beginning of another. You vote for who you want, and then you have to hold them accountable. Stay right there. I want to talk to you about the black middle class and what can be done to keep blacks from falling out of it. Thats a big focus of concern. Stay right there. The Unemployment Rate for july was 6. 5 down from 7. 7 this time last year. Following suit Unemployment Rates are down all over big metropolitan areas than they were this time last year. Cost to cost there are a handful of big cities that jumped in unemployment. The highest is struggling detroit. Much higher than the national rate. On the west coast Los Angeles Tops the unemployment list at 8 . Even though its high to other big cities its doing better than it was doing this time last year when the Unemployment Rate in los angeles was 9. 7 . Ngo surprise, casino towns are suffering. Las vegas with big unemployment. Smallercys in other casino towns. Atlantic city made headlines with its annual decrease in jobs we know that considering how many casinos have closed. And for smaller cities the town with the worst unemployment in the country is yuma, arizona, right on the mexican board. 29. 2 . Thphiladelphia went from 59 of the city. 59 of the city was middle class in 1970. By 2010 it was 42 . Philadelphia is poorer now. Its lost more taxpaying middle class residents as a whole. Only baltimore and detroit has higher percentages of lower households. But one community has managed to keep it together over the last 40 years while others around it got hollowed out. Im talking about the neighborhood. Wind field. [ singing ] reporter its sunday morning at Penn Memorial Church in west philadelphia. Francis austin has been going to this church for decades. She moved to windfield in the 60s when the neighborhood was primarily jewis