Tue Dec 4, 2012, 05:16 AM
HiPointDem (20,729 posts)
How Delaware Thrives as a Corporate Tax Haven
NOTHING about 1209 North Orange Street hints at the secrets inside...But behind its doors is one of the most remarkable corporate collections in the world: 1209 North Orange, you see, is the legal address of no fewer than 285,000 separate businesses. Its occupants, on paper, include giants like American Airlines, Apple, Bank of America, Berkshire Hathaway, Cargill, Coca-Cola, Ford, General Electric, Google, JPMorgan Chase, and Wal-Mart. These companies do business across the nation and around the world. Here at 1209 North Orange, they simply have a dropbox.
What attracts these marquee names to 1209 North Orange and to other Delaware addresses also attracts less-upstanding corporate citizens. For instance, 1209 North Orange was, until recently, a business address of Timothy S. Durham, known as “the Midwest Madoff.” On June 20, Mr. Durham was found guilty of bilking 5,000 mostly middle-class and elderly investors out of $207 million. It was also an address of Stanko Subotic, a Serbian businessman and convicted smuggler — just one of many Eastern Europeans drawn to the state.
Big corporations, small-time businesses, rogues, scoundrels and worse — all have turned up at Delaware addresses in hopes of minimizing taxes, skirting regulations, plying friendly courts or, when needed, covering their tracks. Federal authorities worry that, in addition to the legitimate businesses flocking here, drug traffickers, embezzlers and money launderers are increasingly heading to Delaware, too. It’s easy to set up shell companies here, no questions asked.
In these troubled economic times, when many states are desperate for tax dollars, Delaware stands out in sharp relief. The First State, land of DuPont, broiler chickens and, as it happens, Vice President Joseph R. Biden Jr., increasingly resembles a freewheeling offshore haven, right on America’s shores. Officials in other states complain that Delaware’s cozy corporate setup robs their states of billions of tax dollars. Officials in the Cayman Islands, a favorite Caribbean haunt of secretive hedge funds, say Delaware is today playing faster and looser than the offshore jurisdictions that raise hackles in Washington...
Nearly half of all public corporations in the United States are incorporated in Delaware. Last year, 133,297 businesses set up here. And, at last count, Delaware had more corporate entities, public and private, than people — 945,326 to 897,934.
3 replies, 1221 views
How Delaware Thrives as a Corporate Tax Haven (Original post)
Response to HiPointDem (Original post)
Tue Dec 4, 2012, 05:28 AM
msanthrope (32,239 posts)
1. Is there a reason you are posting this hit piece on Joe Biden from July? This was a Romney campaign
attempt to blunt Mitt's Cayman money. This is somehow relevant now, precisely how?
I love the Faux News spin, "some people say" of this particular quote, which you bolded:
Officials in the Cayman Islands, a favorite Caribbean haunt of secretive hedge funds, say Delaware is today playing faster and looser than the offshore jurisdictions that raise hackles in Washington...
Really? And we care, why, what the Cayman Islands thinks?
Response to msanthrope (Reply #1)
Tue Dec 4, 2012, 05:42 AM
MrYikes (720 posts)
2. Nothin ta see here folks
I'm just the janitor sweepin the hallway. Gotta keep things clean, neat and tidy.....for Hillary.
Response to HiPointDem (Original post)
Tue Dec 4, 2012, 06:46 AM
Auggie (20,853 posts)
3. My parents, when buying a boat in the early 1980's,
were advised by the boat broker to set-up a dummy corporation in Delaware to help avoid Florida taxes. It helps explain why you see so many pleasure craft with "Delaware" painted on their sterns. It's not just "rogues, and scoundrels" who are dodging taxes, but ordinary people.