The British offered Revolutionary War General Benedict Arnold £20,000 for betraying West Point to the Crown.
Benedict Arnold
But Arnold was a piker compared to companies that are raking in literally billions of untaxed dollars by betraying the United States in its time of economic trial.
To avoid paying their legitimate share of taxes, they move their headquarters overseas to countries with reduced tax rates. In tax parlance, this is called an “inversion.”
For almost 20 years, tax-avoiding corporations fled to Caribbean countries such as Bermuda and the Cayman Islands. But in 2004, Congress ruled that American companies could relocate overseas if foreign shareholders owned 20% of their stock.
But increased media attention to “income inequality” has led Democratic lawmakers to press for a long-overdue reform: Raising the stock threshold to 50%.
This would make it harder for firms to abandon their country.
These are the companies abandoning the U.S. to dodge taxes – The Washington Post
Yet a more comprehensive reform package would include:
- American companies that move their headquarters out of the United States would be officially declared “agents of a foreign power engaged in treasonous activity against the United States.”
- Under this designation, these “foreign-owned” companies would be forbidden to sell products within the United States.
- As “agents of a foreign power,” their assets would be subject to confiscation by agents of the Internal Revenue Service.
- The citizenship of those Americans engaged in such treasonous activity would be revoked and they would be ordered to leave the United States on pain of criminal prosecution for treason.
Below is a chart compiled by the Ways and Means Committee Democrats of the U.S. House of Representatives. It compiles 47 corporate “inversions” within the last decade.
From the chart’s introduction:
“Forty-seven U.S. corporations have reincorporated overseas through corporate inversions in the last 10 years, far more than during the previous 20 years combined, according to new data compiled by the Congressional Research Service [CRS].
“In total, 75 U.S. corporations have inverted since 1994 – with one other inversion occurring in 1983. What’s more, there are a dozen prospective inversion deals involving U.S. corporations looking to reincorporate overseas, according to CRS
“The new data underscores the significant increase in the number of U.S. corporations that have or are seeking to lower their U.S. taxes by reincorporating overseas.
“It also adds urgency to a legislative solution. Ways and Means Committee Ranking Member Sander Levin in May introduced legislation that would tighten rules to limit inversions.
“The Joint Committee on Taxation estimates that the legislation would save $19.5 billion over 10 years. Companion legislation was introduced in the Senate by Sen. Carl Levin.
“‘Barely a week seems to pass without news that another corporation plans to move its address overseas simply to avoid paying its fair share of U.S. taxes,’” said Ranking Member Levin.
“These corporate inversions are costing the U.S. billions of dollars and undermining vital domestic interests.
“‘We can and should address this problem immediately through legislation to tighten rules to limit the ability of corporations to simply change their address and ship U.S. tax dollars overseas.’”
New CRS Data: 47 Corporate Inversions in Last Decade | Committee on Ways and Means
Among those companies that have chosen to betray their country in its time of economic need:
- Medtronic Pharmaceuticals. Revenues: $16.5 billion
- Perrigo/Elan Pharmaceuticals. Revenues: $3.5 billion
- Chiquita Brands. Revenues: $3 billion
- Liberty Global PLC Cable Company. Revenues: $17.3 billion
- Eaton/Cooper Power Management. Revenues: $22 billion
- Pentair Water Filtration. Revenues: $7.5 billion
- AON Insurance. Revenues: $11.8 billion
- Global Indemnity Insurance. Revenues: $319 billion
- ENSCO International (oil and gas drilling). Revenues: $4.9 billion
- Coviden Healthcare. Revenues: $10.2 billion
- Herbalife International (nutrition). Revenues: $4.8 billion
- Ingersoll-Rand (industrial manufacturer). Revenues: $12.3 billion
- Accenture Consulting. Revenues: $28.6 billion
- Seagate Technology. Revenues: $14.4 billion
- Tycho International (manufacturing). Revenues: $10.6 billion
- Chicago Bridge & Iron. Revenues: $11.1 billion
- Transocean (offshore oil drilling). Revenues: $9.4 billion
- White Mountain Insurance. Revenues: $2.3 billion
The most popular countries for these “inversions” are:
- The Cayman Islands
- Bermuda
- Canada
- United Kingdom
- Ireland
- Switzerland
- Netherlands
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WHY AMERICANS HATE CABLE COMPANIES
In Bureaucracy, Business, History, Politics, Self-Help, Social commentary on July 29, 2016 at 12:17 amIn 1970, Robert Townsend, the CEO who had turned around a failing rent-a-car company called Avis, published what is arguably the best book written on business management.
It’s Up the Organization: How to Stop the Corporation From Stiffling People and Strangling Profits.
Though published 46 years ago, it should be required reading–for CEOs and consumers.
Don’t fear getting bogged down in a sea of boring, theory-ridden material. As Townsend writes:
“This book is in alphabetical order. Using the table of contents, which doubles as the Index, you can locate any subject on the list in 13 seconds. And you can read all I have to say about it in five minutes or less.
“This is not a book about how organizations work. What should happen in organizations and what does happen are two different things and about as far apart as they can get. THIS BOOK IS ABOUT HOW TO GET THEM TO RUN THREE TIMES AS WELL AS THEY DO.”
Comcast is the majority owner of NBC and the largest cable operator in the United States. It provides cable TV, Internet and phone service to more than 50 million customers.
So you would think that, with so many customers to serve, Comcast would create an efficient way for them to attain help when they face a problem with billing or service.
Think again.
Consider the merits of Townsend’s short chapter on “Call Yourself Up.”
Townsend advises CEOs:“Pretend you’re a customer. Telephone some part of your organization and ask for help. You’ll run into some real horror shows.”
Now, imagine what would happen if Brian L. Roberts, the CEO of Comcast, did just that.
Brian L. Roberts
First, he would find that, at Comcast, nobody actually answers the phone when a customer calls. After all, it’s so much easier to fob off customers with pre-recorded messages than to have operators directly serve their needs.
And customers simply aren’t that important–except when they’re paying their ever-inflated bills for phone, cable TV and/or Internet service.
Comcast’s revenues stood at $19.25 billion for the fourth quarter of 2015.
In 2015, Roberts earned $36.2 million in salary, options and other compensation, a 10% increase from 2014.
So it isn’t as though the company can’t afford hiring a few operators and instructing them to answer phones directly when people phone in.
But instead of being directly connected to someone able to answer his question or resolve his problem, Roberts would hear:
“Welcome to Comcast–home of Xfinity.”
Then he would hear an annoying clucking sound–followed by the same message in Spanish.
“Your call may be recorded for quality assurance.
“To make a payment now, Press 1. To continue this call, Press 2.”
Then he would hear: “For technical help, press 1, for billing, press 2. For more options, press 3.”
Assuming he pressed 2 for “billing,” he would hear:
“For payment, press 1 For balance information, press 2. For payment locations, press 3. For all other billing questions, press 4.”
Then he would be told: “Please enter the last four digits of the primary account holder’s Social Security Number.”
Then, as if he hadn’t waited long enough to talk to someone, he would get this message: “Press 1 if you would like to take a short survey after your call.”
By the time he heard that, he would almost certainly not be in a mood to take a survey. He would simply want someone to come onto the phone and answer his question or resolve his problem.
Then he would hear: “At the present time, all agents are busy”–and be electronically given an estimate by when someone might deign to answer the phone.
“Please hold for the next customer account executive.”
If he wanted to immediately reach a Comcast rep, Roberts would press the number for “sales.” A sales rep would gladly sign him up for more costly products–even if he couldn’t solve whatever problem Roberts needed addressed.
Assuming that someone actually came on, Roberts couldn’t fail to notice the unmistakable Indian accent of the rep he was now speaking with.
Not Indian as in American Indian-because that would mean his company had actually hired Americans who must be paid at least a minimum American wage for their services.
No, Comcast, like many other supposedly patriotic corporations, “outsources” its “customer service support team” to the nation, India.
After all, if the “outsourced” employees are getting paid a pittance, the CEO and his top associates can rake in all the more.
Of course, the above scenario is totally outlandish–and is meant to be.
Who would expect the wealthy CEO of a major American corporation to actually wait in a telephone queue like an ordinary American Joe or Jane?
That would be like expecting the chief of any major police department to put up with hookers or panhandlers on his own doorstep.
For the wealthy and the powerful, there are always underlings ready and willing to ensure that their masters do not suffer the same indignities as ordinary mortals.
Such as the ones who sign up for Comcast TV, cable or Internet services.
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