Cliff Notes Save The Day
Like Finnegan's Wake, Harry Potter & The Sorcerer's Stone can sometimes make for pretty convoluted reading. Luckily, there are now
notes available.
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Homeland Security For Corporations
Two interesting provisions were tacked on to the recent Homeland Security bill that flew through Congress. These days, everybody’s talking about the logistics and problems associated with the largest government reorganization since the Truman Administration while these small gifts to Bush contributors are remaining steadfastly under the radar. Let’s shine a little light on them:
Corporations have been reincorporating in Bermuda to avoid paying US taxes. Now, they aren’t moving there, they’re just setting up a shell office as a mail drop and boom! - it saves them millions of dollars a year. Let’s put aside the offense to the concept of patriotism that a corporation such as Ingersoll-Rand (that split for Bermuda 3 months after 9/11) commits by running off to the nearest tax dodge during a time of war (or prewar or whatever) and get down to the problems with this bill. The Wellstone amendment to this bill was meant to close the loophole that allowed these ethically-challenged companies to still get highly lucrative US government contracts despite the fact that they were no longer US companies on paper. At the same time that various lawmakers were praising the late senator for his values immediately following his death, they were removing his amendment and replacing it with a completely toothless one which benefits theses tax evaders (oops, sorry. The new names for corporate tax cheats is “corporate expatriates” and the relocation is called a “corporate Inversion.” Doesn't that sound less treasonous?). So, As Molly Ivans puts is:
Here's Rep. Richard Neal of Massachusetts on how it works: "Let's take Tyco, formerly of New Hampshire, now of Bermuda, for example. Tyco avoids paying $400 million a year in U.S. taxes by setting up a shell headquarters offshore, but it was awarded $182 million in lucrative defense and homeland security-related contracts in 2001 alone. If Tyco had just paid its tax bill, Congress could easily have paid for 400 explosive detection systems (EDS), which are badly needed to protect U.S. travelers at airports around the nation. "Or let's examine corporate expatriate Ingersoll-Rand, formerly of New Jersey, and now also in Bermuda. Ingersoll-Rand earned as much last year in U.S. defense and homeland security federal contracts as it avoids in U.S. taxes annually merely by renting a mailbox in Bermuda and calling it 'home.' If Ingersoll Rand paid its U.S. tax bill, Congress could easily afford to fund the Cyberspace Warning Intelligence Network, estimated to cost $30 million, or it could also buy 400,000 gas masks for American citizens. More
here.
Any guesses on which of these companies was a major contributor to the Bush campaign? Speaking of major contributors, another company, Eli Lily, also got a lot for their dollar in this new bill. The legislation contains a provision that protects the company from the lawsuits that are gathering strength over the use of a mercury based preservative called thimerosal that is used in some of their vaccines. Mercury, as you may know, is not so hot for your noggin and small doses of it can cause severe brain damage. Although the company maintains that this preservative is safe (and is backed up by many
studies,) ,there are many
others that see a link between thimerosal and autism (with studies that support this, as well). While the jury is still out on this, the dispute is heating up. So, Eli Lily basically paid to have itself granted immunity just in case their vaccines are linked to autism. Not a lot of faith in their own product, huh? Isn’t this like tacking a provision protecting the German company that marketed Thalidomide on to the civli rights legislation of the 60s? How about tacking on to the A.D.A a provision which protects Philip Morris from its practice of secretly manipulating the nicotine levels in their products? I mean, come on? Can this administration get any more brazen in it’s attempts to protect corporations from the repercussions of their own ethical violations, crime, and wrongdoing? Of course, most businesses in this country are run ethically and respectably but the actions of some high profile corporations as of late are not a great argument for totally free market capitalism. Does anyone in this government give a rats ass about the general public that suffers when one of these wayward corporations trashes the stock holdings of its employees and share holders, cheats the people out of taxes, or beta tests the safety of its products on an unsuspecting public?
CCF
Formerly of Boston
Now reachable in Bermuda for tax purposes