Robert Reich: The New Way Big Corporations Like Walgreen Are Shamelessly Dodging Their Taxes.

[elleng]

And why they may be cutting off their nose to spite their face.

http://www.alternet.org/economy/robert-reich-new-way-big-corporations-walgreen-are-shamelessly-dodging-their-taxes

[hollysmom]

1. I worked for Mellon that outsourced work to India.

My job was to manage large projects in one specific area, but not manage the people, so I did spread sheet after spread sheet about the work and the individuals doing the work. I tried to make recommendations like classify people so that we can get a better idea of cost of the employee vs the amount of work done and to standardize numerically the work load. Nope - all people were deemed equal and we used an average salary to track the work. With even that - American workers (severely underpaid in our part of the state) with office costs included were about 100 an hour. the Indian workers were averaged in at 20 an hour, both of which were fictions, but that is another story,
even using their uneven figures, I could see that Americans were getting 10 times the work done because they had experience, most workers were on the job for over 5 years. The Indians were new hires, you would think things would change over the years - but no. I talked to some Indian workers about this and they said once they had more experience they had to get another job because the Indian company would not give them a raise but just replace them with inexperienced workers.
Silly me, I went to the president of our division, but the man was sure I did not know what I was talking about, well, for one thing I was a woman and not in the Old Boys Club and on the other hand, I would not just tell them what they wanted to hear like my boss would. My boss said don't make waves!!!!!

Outsourcing does not always reduce prices, because you get what you pay for. All boilers are made outside the US since then the reliability of Boilers has gone down.

[Igel]

2. Interesting.

So the effective tax rate is really less here.

But by incorporating overseas and paying taxes there the companies pay less in taxes.

Something's left out.

[Bill USA]

5. if they keep the profits in overseas accounts - i.e. in the overseas subsidiary - they don't pay ANY

U.S. taxes on profits. This is why you hear the Repugnuts often saying let's 'repatriate' corporations profits by not levying income taxes on it. The profits brought back from foreign subsidiaries will boost job creation. They tried that once and corporations used the money to boost dividends or for stock buy-backs. Little job creation was seen.

[Fred M]

3. Clinton's Best Cabinet Appointment

Robert Rubin, not so much

[quadrature]

4. better or worse than, 'Family Tax-Avoidance Trusts'? ...nt