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LeighAnn Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 03:14 PM
Original message
Some foreign-owned firms "strip" US profit-Treasury
Source: Reuters

Foreign-controlled U.S. companies that move their headquarters overseas are rampantly "stripping" earnings to avoid paying U.S. corporate income taxes, according to a new U.S. Treasury Department study released on Wednesday.

The practice of earnings stripping by foreign-controlled firms involves adding excessive debt or other costs to a U.S. subsidiary to reduce local profits and avoid tax liabilities.

The Treasury study noted the existence of "strong evidence" of earnings stripping by foreign-controlled corporations that have undergone so-called "inversion" transactions -- those in which a U.S.-based parent company is replaced with a foreign parent in a low-tax or no-tax country.

The study did not find conclusive evidence of earnings stripping by foreign controlled domestic firms that have not undergone such inversions, but the Treasury said more information was needed to reach a definitive conclusion on the issue.



Read more: http://www.reuters.com/article/governmentFilingsNews/id...
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ThomCat Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 03:17 PM
Response to Original message
1. If they have the oportunity, they'll do it.
Corporations exist to maximize profit. Surely it can't be a surprise that they'll manipulate their books to pay the lowest possible tax rate.

Corporations have become far, far too powerful in the past century. And I don't know how we're going to reign them in.
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Baby Snooks Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 03:44 PM
Response to Reply #1
4. Congress could...
"Corporations have become far, far too powerful in the past century. And I don't know how we're going to reign them in."

Congress could. If Congress weren't busy lining its pockets with a lot of the corporate profit that goes into PACs and 527s and of course into the pockets of lobbyists who find all sorts of ways, legal and illegal, to make life more comfortable for our public servants who haven't served the public for most of the past century.

Pelosi made that abundantly clear with the first act of the new Democratic Congress. The minimum wage bill. Setting a higher minimum wage that all employers would have to pay. Except for Starkist.

Someone should have tossed her and Starkist back in the water right then and there.

Halliburton moved its headquarters to Dubai. They recently announced a new non-stop flight from Houston to Dubai. No doubt to make it easier for Halliburton officials to commute to work each day.
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iamahaingttta Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 04:06 PM
Response to Reply #1
5. Reign them in?
What if we... oh, I don't know... stop buying their stuff?
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ThomCat Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 04:10 PM
Response to Reply #5
6. Good luck with that.
Even if you only buy the bare minimum you need to survive, how do you do it without feeding corporations?

And if it's just you all by yourself, how much of an impact do you really think you'll have? I doubt you have the power individually to bring down any corporation.
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iamahaingttta Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 11:02 PM
Response to Reply #6
11. Well there ya go...
I guess it's hopeless.

Just keep banging your head against that wall...
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Robbien Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 03:21 PM
Response to Original message
2. The Treasury did a study, not an investigation
No blame, no consequences. Just a for your info kind of thing.
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peacetalksforall Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 03:28 PM
Response to Reply #2
3. A study ... just between friends?
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Jackpine Radical Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 04:39 PM
Response to Original message
7. 'More information was needed to reach a definitive conclusion...."
Just like global warming.
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McCamy Taylor Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 04:42 PM
Response to Original message
8. No duh?
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benld74 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 06:48 PM
Response to Original message
9. Halliburton just moved and made gazillions from the
government, but will NOT pay taxes on any of it. Good ol'e GOP values
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indepat Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 06:51 PM
Response to Original message
10. Hell, seem to recall the Gipper thought corporations should not pay taxes, that only people should
pay taxes. Where there is a will, there is a way.
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Trajan Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 11:21 PM
Response to Original message
12. No ... Your KIDDIN !
Edited on Wed Nov-28-07 11:22 PM by Trajan
Why I never ! ....

I am .... shocked .... SHOCKED ! ...

I am SURE the right wing LOONIES who helped make all this possible will IMMEDIATELY get right to it and fix this .....

I have no doubt that Dick-Man and the Frat-Boy Wonder are VERY concerned about this 'stripping of profits' thingy ....

Gonna get right on that .... right after this golf game ...

Here ... Watch this drive .... SCHWINGGGG !
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