Posts Tagged ‘tax-havens’
April 5, 2011 By Joshua Holland AlterNet
If you or I were running a small business and we kept one set of books showing how much money we were making and a second set for the IRS that painted a picture of an enterprise on the brink of bankruptcy, we’d end up behind bars.
But that’s standard operating procedure for corporate America. In fact, public corporations have to do it — the law requires that they keep one set of books for their shareholders, and another for the IRS. As tax journalist David Cay Johnston explained, “Many corporations routinely tell investors they incur millions in corporate income taxes, while the financial records they give the IRS show they owe nothing or are due refunds.”
In the records kept by the IRS, corporations cook the books “by using tax shelters, offsetting income with losses from years ago, and employing countless other devices that make them look like paupers to the IRS but money machines to investors.”We got a peek into this process last week, when the New York Times revealed that multinational giant GE is not only avoiding corporate income taxes this year, but is taking a “tax benefit” of $3 billion. According to the Times, the company’s “extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore.”
But of course, GE is not alone. Here are 10 other big corporate tax evaders (with an assist from an MSNBC analysis of leading corporate tax-dodgers). Keep in mind that neither political party ever actually cuts spending significantly, so every dollar these companies avoid paying is one that will come out of the paychecks of working America.
CEO: Eric Schmidt (117 on Forbes list of the wealthiest with a net worth of $6.3 billion in 2010.)
2010 Pre-tax Profit: $10.8 billion
How Google avoids paying US taxes: According to MSNBC, Google reports income in overseas tax havens and then reports its costs here at home. Google also patents its products abroad, licenses its technologies from its overseas subsidiaries and then writes off the costs of the licenses.
Google fun-fact: Google rents 200 goats, complete with goatherd and a border collie, to keep the grass nicely trimmed at Google HQ. Oh, and this week Bloomberg reported that the Federal Trade Commission is considering launching a major investigation into Google’s anti-competitive practices.
2. News Corp
CEO: Rupert Murdoch (Murdoch ranked 53rd on Forbes’ list of highest-paid CEOs and was the 117th richest person in the world last year.)
2010 Pre-tax Profit: $3.3 billion
Taxation strategy: In 2008, the Government Accountability Office issued an analysis concluding that one of the companies with the greatest number of subsidiaries in offshore tax-havens was none other than News Corp., which then had more than 150 of them scattered across the world.
News Corp. fun-fact: Fox “News” devoted significant airtime to hyping the financial ties between Alwaleed bin Talal, a member of the Saudi royal family, and the developers of the Park 51 Muslim community center planned for downtown Manhattan. Fox implied there was something sinister about the financier, but didn’t mention that he is also News Corp.’s second largest shareholder, with 7 percent of the company’s stock.
Written by laudyms
April 6, 2011 at 9:37 am
Globalization, multi-national corporations, off-shore tax havens and governments willing to support them have created a global criminal enterprise designed to pillage nations and peoples for the profit of a very few. De-industrialization of the United States was orchestrated for this purpose by the “enemies foreign and domestic” that we were warned about. Their plot has now become our national policy, and Congressional concerns will not be made public. – Claudia
March 28th, 2011 by Steven Aftergood FAS Secrecy News
The U.S. intelligence community will prepare a National Intelligence Estimate on the implications of the continuing decline in U.S. manufacturing capacity, said Rep. Jan Schakowsky (D-IL) citing recent news reports.
“Last month Forbes reported that the continued erosion of the U.S. manufacturing base has gotten so serious that the Director of National Intelligence has begun preparation of a National Intelligence Estimate… to assess the security implications of the decline of American manufacturing,” said Rep. Schakowsky, a member of the House Intelligence Committee.
“Our growing reliance on imports and lack of industrial infrastructure has become a national security concern,” said Rep. Schakowsky. She spoke at a March 16 news conference (at 28:10) in opposition to the pending U.S.-Korea Free Trade Agreement.
The Forbes report referenced by Rep. Schakowsky was “Intelligence Community Fears U.S. Manufacturing Decline,” by Loren Thompson, February 14. The decision to prepare an intelligence estimate was first reported by Richard McCormack in “Intelligence Director Will Look at National Security Implications of U.S. Manufacturing Decline,” Manufacturing & Technology News, February 3.
Rep. Schakowsky told the newsletter Inside U.S. Trade (March 25) that she hopes a “declassified portion” of the NIE will be publicly released.
But according to the Congressional Research Service, that may be unlikely. “There seems to be an emerging consensus that publicly releasing NIEs, or even unclassified summaries, has limitations. Some of the nuances of classified intelligence judgments are lost and there are concerns that public release of an unclassified summary of a complicated situation does not effectively serve the legislative process.” See “Intelligence Estimates: How Useful to Congress?” (pdf), January 6, 2011.
“With 14 million Americans out of a job we should not be considering a trade deal that will ship additional jobs overseas,” said Rep. Schakowsky, referring to the U.S.-Korea Free Trade Agreement.
“Instead, we need to work to rebuild the American manufacturing sector, creating jobs at home. And instead of approving FTAs (free trade agreements) that will offshore more American jobs, we need to establish a trade policy that benefits American workers and the entire American economy,” she said.
The CRS (pdf) cited a study which concluded that overall changes in aggregate U.S. employment attributable to the US-Korea agreement “would be negligible given the much larger size of the U.S. economy compared to the South Korean economy. However, while some sectors, such as livestock producers, would experience increases in employment, others such as textile, wearing apparel, and electronic equipment manufacturers would be expected to experience declines in employment.” Accordingly, the “U.S. beef sector” supports the agreement, while some labor unions oppose it.
See “The Proposed U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implications,” Congressional Research Service, March 1, 2011. See also “Free Trade Agreements: Impact on U.S. Trade and Implications for U.S. Trade Policy,” January 6, 2011.
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Written by laudyms
March 28, 2011 at 9:12 am