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In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on March 19, 2019 at 12:10 am
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.
According to statistics compiled by the Congressional Research Service (CRS) in 2014:
“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.
“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.’”
Among those companies that have chosen to betray their country in its time of economic need:
| INVERSION YEAR |
COMPANY NAME |
TYPE |
COUNTRY OF INCORPORATION |
REVENUE |
| 1983 |
McDermott International |
Engineering |
Panama |
$2.7 billion |
| 1994 |
Helen of Troy |
Consumer Products |
Bermuda |
$1.3 billion (FY 2014) |
| 1996 |
Triton Energy |
Oil and Gas |
Cayman Islands |
Acq by Hess in ’01 |
| 1996 |
Chicago Bridge & Iron (CBI) |
Engineering |
Netherlands |
$11.1 billion |
| 1997 |
Tyco International |
Diversified Manufacturer |
Bermuda |
$10.6 billion |
| 1997 |
Santa Fe International |
Oil and Gas |
Cayman Islands |
Acq by Transocean in ’07 |
| 1998 |
Fruit of the Loom |
Apparel Manufacturer |
Cayman Islands |
private company |
| 1998 |
Gold Reserve |
Mining |
Bermuda |
N/A |
| 1998 |
Playstar Corp. |
Toys |
Antigua |
Acq by Premier Mobile in ’06 |
| 1999 |
Transocean |
Offshore Drilling |
Cayman Islands |
$9.4 billion |
| 1999 |
White Mountain Insurance |
Insurance |
Bermuda |
$2.3 billion |
| 1999 |
Xoma Corp. |
Biotech |
Bermuda |
$35.5 million |
| 1999 |
PXRE Group |
Insurance |
Bermuda |
Acq by Argonaut Group in ’07 |
| 1999 |
Trenwick Group |
Insurance |
Bermuda |
Acq by LaSalle Re Holdings in ’00 |
| 2000 |
Applied Power |
Engineering |
Bermuda |
Now called Actuant $494 million |
| 2000 |
Everest Reinsurance |
Insurance |
Bermuda |
$5.6 billion |
| 2000 |
Seagate Technology |
Data Storage |
Cayman Islands |
$14.4 billion |
| 2000 |
R&B Falcon |
Drilling |
Cayman Islands |
Acq by Transocean in ’00 |
| 2001 |
Global Santa Fe Corp. |
Offshore Drilling |
Cayman Islands |
Acq by Transocean in ’07 |
| 2001 |
Foster Wheeler |
Engineering |
Bermuda |
$559 million |
| 2001 |
Accenture |
Consulting |
Bermuda |
$28.6 billion (FY 2013) |
| 2001 |
Global Marine |
Engineering |
Cayman Islands |
Acq by Bridgehouse Capital in ’04 |
| 2002 |
Noble Corp. |
Offshore Drilling |
Cayman Islands |
$4.2 billion |
| 2002 |
Cooper Industries |
Electrical Products |
Bermuda |
Acq by Eaton in ’12 |
| 2002 |
Nabor Industries |
Oil and Gas |
Bermuda |
$1.6 billion |
| 2002 |
Weatherford International |
Oil and Gas |
Bermuda |
$15.2 billion |
| 2002 |
Ingersoll-Rand |
Industrial Manufacturer |
Bermuda |
$12.3 billion |
| 2002 |
PricewaterhouseCoopers Consulting |
Consulting |
Bermuda |
N/A |
| 2002 |
Herbalife International |
Nutrition |
Cayman Islands |
$4.8 billion (sales) |
| 2005 |
Luna Gold Corp |
Mining |
Canada |
$85.3 million |
| 2007 |
Lincoln Gold Group |
Mining |
N/A |
|
| 2007 |
Western Goldfields |
Mining |
N/A |
Acq by New Gold in ’09 |
| 2007 |
Star Maritime Acquisition Grp |
Shipping |
N/A |
Now Star Bulk $69 million |
| 2007 |
Argonaut Group |
Insurance |
Bermuda |
$1.4 billion |
| 2007 |
Fluid Media Networks |
Music Distribution |
|
|
| 2008 |
Tyco Electronics |
Industrial Manufacturer |
Switzerland |
Now TE Connectivity $3.4 billion (FY ’13) |
| 2008 |
Foster Wheeler |
Engineering |
Bermuda |
$3.3 billion |
| 2008 |
Covidien |
Healthcare |
Ireland |
$10.2 billion |
| 2008 |
Patch International Inc |
Oil and Gas |
Canada |
|
| 2008 |
Arcade Acquisition Group |
Financial |
|
|
| 2008 |
Energy Infrastructure Acquisition Group |
Energy |
|
|
| 2008 |
Ascend Acquisition Group |
Electronics |
N/A |
Acq by Kitara Media in ’13 |
| 2008 |
ENSCO International |
Oil and Gas |
United Kingdom |
$4.9 billion |
| 2009 |
Tim Hortons Inc |
Restaurant Chain |
Canada |
$3.2 billion |
| 2009 |
Hungarian Telephone & Cable Corp. |
Telecommunications |
Denmark |
$219 million |
| 2009 |
Alpha Security Group |
Security |
N/A |
|
| 2009 |
Alyst Acquisition Group |
Financial |
N/A |
Acq by China Networks Media in ’09 |
| 2009 |
2020 ChinaCap Acquirco |
Financial |
N/A |
Acq by Exceed Co. in ’09 |
| 2009 |
Ideation Acquisition Grp |
Private Equity |
N/A |
Acq by SearchMedia in ’09 |
| 2009 |
InterAmerican Acquisition Grp |
Business Management |
N/A |
Acq by Sing Kung Ltd in ’09 |
| 2009 |
Vantage Energy Services |
Offshore Drilling |
Cayman Islands |
$732 million |
| 2009 |
Plastinum Polymer Tech Corp. |
Industrial Manufacturer |
|
|
| 2010 |
Valient Biovail |
Pharmaceuticals |
Canada |
$5.7 billion |
| 2010 |
Pride International |
Offshore Drilling |
United Kindom |
Acq by Ensco in ’11 |
| 2010 |
Global Indemnity |
Insurance |
Ireland |
$319 billion |
| 2011 |
Alkermes, Inc. |
Biopharmaceutical |
Ireland |
$575 million |
| 2011 |
TE Connectivity |
Industrial Manufacturer |
Switzerland |
$13.3 billion |
| 2011 |
Pentair |
Water Filtration |
Switzerland |
$7.5 billion |
| 2012 |
Rowan Companies |
Oil Well Drilling |
United Kindom |
$1.5 billion |
| 2012 |
AON |
Insurance |
United Kindom |
$11.8 billion |
| 2012 |
Tronox Inc |
Chemical |
Australia |
$1.9 billion |
| 2012 |
Jazz Pharmaceuticals / Azur Pharma |
Pharmaceuticals |
Ireland |
$872 million |
| 2012 |
D.E. Master Blenders |
Coffee |
Netherlands |
$3.5 billion |
| 2012 |
Stratasys |
Printer Manufacturer |
Israel |
$486.7 million |
| 2012 |
Eaton/Cooper |
Power Management |
Ireland |
$22 billion |
| 2012 |
Endo Health Solutions |
Pharmaceuticals |
Ireland |
$2.6 billion |
| 2013 |
Liberty Global PLC |
Cable Company |
United Kindom |
$17.3 billion |
| 2013 |
Actavis / Warner Chilcott |
Pharmaceuticals |
Ireland |
$8.7 billion |
| 2013 |
Perrigo/Elan |
Pharmaceuticals |
Ireland |
$3.5 billion (FY 2013) |
| 2013 |
Cadence Pharmaceuticals |
Pharmaceuticals |
Ireland |
$110 million |
| 2014 |
Mallinckrodt Pharmaceuticals |
Pharmaceuticals |
Ireland |
$2.2 billion |
| 2014 |
Chiquita Brands |
Produce |
Ireland |
$3 billion |
| 2014 |
Medtronic |
Pharmaceuticals |
Ireland |
$16.5 billion |
SOURCE: Source: Ways and Means Committee Democrats. GRAPHIC: Danielle Douglas – The Washington Post. Published Aug. 6, 2014.
The most popular countries for these “inversions” are:
- The Cayman Islands
- Bermuda
- Canada
- United Kingdom
- Ireland
- Switzerland
- Netherlands
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In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on March 18, 2019 at 12:28 am
On May 13, 2012, Forbes magazine ran an Op-Ed piece under the headline: “For De-Friending The U.S., Facebook’s Eduardo Saverin Is an American Hero.”
Democratic Senator Chuck Schumer of New York angrily disagreed.

Chuck Shumer
“It is scary. It is a scary, absurd place where even a tax dodger who renounces America for his own 30 pieces of silver is celebrated as a patriot and an American hero.
“It is perverse. I am appalled by making heroic a man who renounces citizenship to escape a tax rate of capital gains of 15%.
“No one gets rich in America on their own,” Schumer said. “And when people do well in America, they should do well by America. I believe the vast majority of Americans believe this, too.”
From that Op-Ed piece:
“Saverin’s flight from the U.S. is yet another reminder of the superiority of a national consumption tax that in a perfect world would be implemented in concert with the abolition of the I.R.S.”
It’s tempting to imagine a world without an agency to collect taxes. But it’s nightmarish to contemplate a world where there were no taxes to pay for
- A powerful military to protect us;
- An FBI to combat terrorism and organized crime;
- An FAA to safely regulate airline traffic;
- Agencies to repair roads;
- Agencies to erect public buildings (such as schools, courts and libraries) and
- Agencies (such as the EPA and FDA) to protect us from predatory businessmen.
The Op-Ed piece further asserts that “you cannot limit the power of the Federal Government if its officials hold the power to tax incomes.”
Every nation in history—whether a democracy or a dictatorship, whether capitalist, socialist or communist––has understood the absolute necessity for collecting public revenues. And it has created means by which to do so.
“When individuals resist governmental hubris, we should exalt their actions.”
We should, in short, celebrate those who come to the United States to make fortunes they could not make anywhere else––and then, when they do, turn their backs on their adopted country.
We should rejoice that they have stuffed billions of dollars more into their already-fat pockets and left their supposed fellow countrymen to shift for themselves.
“In an ideal world the Federal Government should implement a consumption tax. And if, as a result, poor people suffer because they’re taxed at the same level as rich ones, fine.
“Everyone should know how much it costs to run the government.”
Of course we should have a “regressive” tax that “hits low incomes at the same percentage as high ones.”
Of course, those who are barely able to feed their families or can’t afford medical care should pay as much in taxes as a rich parasite who, like Mitt Romney, throws out $10,000 bets like so many dimes.
“If the Federal Government can’t fund all its programs because rich people like Saverin refuse to pay taxes, then U.S. taxpayers generally will have to make good for the missing taxes. It’s the fault of Congress that it cannot put an end to any program.”
For billionaires like Saverin and the well-heeled types who subscribe to Forbes, it doesn’t matter whether “the Federal Government can’t fund all its programs.”

San Simeon, estate of William Randolph Hearst
Greed-obsessed “swells” like Saverin:
- Don’t depend on Medicare—they can easily afford the best doctors money can buy;
- Don’t have to depend on Social Security to see them through old age;
- Don’t have to worry about standing in food bank lines;
- Don’t need to rely on police departments—if they’re threatened, they can easily afford round-the-clock bodyguards;
- Don’t need consumer protection agencies; if they’re victimized by unscrupulous businessmen, they can hire platoons of lawyers and private detectives.
A contemporary writer who warned of America’s abandonment by its privileged classes was Christopher Lasch. In his posthumously published last book, The Revolt of the Elites and the Betrayal of Democracy [2005] he wrote:

“There has always been a privileged class, even in America. But it has never been so dangerously isolated from its surroundings.
“George Bush’s [the president who served from 1989 to 1992] wonderment, when he saw for the first time an electronic scanning device at a supermarket checkout counter, revealed…the chasm that divides the privileged classes from the rest of the nation.”
Until recently, wrote Lasch, American cultural and economic elites willingly shouldered civic responsibilities. But in post-modern capitalism, a professional elite defines itself as entirely separate from civic concerns.
The new elites flourish through enterprises that operate across international borders. The rich in America have more in common with their fellows in Europe or Asia than with the vast majority of their fellow Americans who don’t share their comfortable surroundings.
Thus, the privileged class in America—the top 1%—has separated itself from the crumbling public services and industrial cities that are used and lived in by the rest of the country’s citizens.
Even worse, our society has condoned their exalted status. The dust jacket blurb for James Patterson’s crime-thriller, NYPD Red, says it best:
“NYPD Red is a special task force charged with protecting the interests of Manhattan’s wealthiest and most powerful citizens.”
It’s time to protect the 99% of America’s citizens against the predators of its 1% wealthiest.
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In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on March 15, 2019 at 12:07 am
Americans need to realize that a country can be betrayed for other than political reasons. It can be sold out for economic ones, too
On May 15, 2012, Facebook co-founder Eduardo Saverin renounced his U.S. citizenship.
Born in Brazil, the 30-year-old Saverin became a U.S. citizen in 1998 but had lived in Singapore since 2009.

Eduardo Saverin
Giving up his citizenship allowed him to avoid paying taxes on billions of dollars on capital gains when Facebook launched its IPO on May 18, 2012.
Singapore does not have a capital gains tax.
And America’s extreme Right couldn’t have been happier.
Take Rush Limbaugh, the Right-wing talk-show host. The Rush Limbaugh Show airs throughout the U.S. on over 400 stations and is the highest-rated talk-radio program in the United States.
When Limbaugh speaks, his “dittohead” audience listens—and acts as he decrees.

Rush Limbaugh
“So if it’s a more favorable tax haven that you can find elsewhere and you go there,” asked Limbaugh, “why is it automatically that you are unpatriotic?
“Why is it automatically that you are a coward, that you are not paying your fair share? It’s this whole class envy thing rearing its head again.”
For Limbaugh, the villain isn’t a billionaire who turns his back on the country that gave him the opportunity to become one. No, the villain lies in those who believe that even wealthy businessmen should behave like patriots—instead of parasites.
“But [Barack Obama is] out there demonizing successful people every day,” said Limbaugh, “targeting successful people every day, running a presidential campaign based on class warfare, trying to get the 99% of the country who are not in the top 1% to hate the 1%, to literally despise ’em.”
Consider the implications of this:
On November 1, 2011, Forbes magazine reported that, in 2007, the richest 1% of the American population owned 34.6% of the country’s total wealth, and the next 19% owned 50.5%.
Thus, the top 20% of Americans owned 85% of the country’s wealth and the bottom 80% of the population owned 15%.
According to Limbaugh’s philosophy, the bottom 80% of the population owning 15% of the country’s wealth should pay homage to the top 20% of Americans who own 85% of the country’s wealth.
In short, they should “know their place” and not expect the moneyed few to pay their fair share of taxes.
Of course, this is to be expected of Limbaugh—whose own wealth makes him a multi-millionaire.
In 2001, U.S. News & World Report noted that Limbaugh had an eight-year contract, with Clear Channel Communications, for $31.25 million a year.
And according to a July 2, 2008, Matt Drudge column, Limbaugh signed a contract extension through 2016 that is worth over $400 million.
And Limbaugh wasn’t alone in his praise for Saverin.
Another right-winger who defends those who run out on their country is anti-tax activist Grover Norquist.
On May 7, 2012, two Democratic Senators—Chuck Schumer of New York and Bob Casey of Pennsylvania—introduced legislation designed to tax expatriates even after they have left the country.
Their “Ex-PATRIOT Act” would have imposed a mandatory 30% tax on American investments for those who renounce their citizenship and would also prohibit individuals like Saverin from re-entering the country.
But the bill died in committee.
In 2013, Schumer and two other Senators added similar provisions to a major immigration reform bill. But their amendment was not included in the version of the bill that passed the Senate.
“Saverin has turned his back from the country that welcomed him, kept him safe, educated him and helped him become a billionaire,” Schumer said at a press conference. He added that it was time to “de-friend” the Facebook co-founder.
Norquist, the president of Americans for Tax Reform (ATF) said that targeting people that turn in their passports reminded him of regimes that had driven people out of the country, only to confiscate their wealth at the door.

Grover Norquist
“I think Schumer can probably find the legislation to do this,” said Norquist. “It existed in Germany in the 1930s and Rhodesia in the ’70s and in South Africa as well. He probably just plagiarized it and translated it from the original German.”
On the floor of the Senate, Schumer denounced Norquist in return:
“I know a thing or two about what the Nazis did. Some of my relatives were killed by them.
“Saying that a person who made their fortune specifically because of the positive elements in American society, in turn, has a responsibility to do right by America is not even on the same planet as comparing to what Nazis did to Jews.”

Chuck Schumer
Schumer added that he found it troubling that conservatives would lionize someone like Saverin, who was called “an American hero” by Forbes magazine.
On May 13, 2012, Forbes—which describes itself as “The Capitalist Tool”–had run an Op-Ed piece under the headline: “For De-Friending The U.S., Facebook’s Eduardo Saverin Is an American Hero.”
“Can you believe it?” asked Schumer. “An American hero? Renouncing your citizenship now qualifies as heroic for the hard Right-wing?”
“This has gone so far, this idolatry they have taken to such an extreme end, they make Eduardo Saverin into their patron saint. In the name of low taxes for the wealthy, they have lionized an inherently unpatriotic person.”
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In Bureaucracy, History, Military, Politics, Social commentary on February 1, 2019 at 12:05 am
On January 25, 2019—the 35th day of the Federal Government shutdown—President Donald Trump did what no one expected. He caved.
In a White House press conference, he said:
- Lawmakers would have until February 15 to negotiate a compromise on border security.
- Otherwise, the government would shut down again.
- If Democrats did not give in to his demands to fund a border wall, he might use his executive authority to command the military to build the wall instead.
Essentially, he agreed to the same deal he was offered in December, 2018—before he allowed himself to be bullied by Ann Coulter and Rush Limbaugh into shutting down the government.
For all of Trump’s defiant words, his action was universally seen as a serious defeat—by both his opponents and supporters.
Among the latter was Right-wing provocateur Ann Coulter. Summing up the reaction of his Hispanic-hating supporters, she tweeted: “Good news for George Herbert Walker Bush: As of today, he is no longer the biggest wimp ever to serve as president of the United States.”
On the PBS Newshour, liberal political analyst Mark Shields said: “it was a total defeat for him. And, believe me…there will not be the will among Republicans in three weeks to go back and do this again. Once it’s open, it’s going to be opened.”
His counterpart, conservative analyst David Brooks, agreed: “It is a total—a total victory for the Democrats….If Donald Trump wants bring this on again, [Democrats will be] happy.
“The Republicans are miserable. They never want to come back to where they are right now. And so the odds that we will have another shutdown strike me as low. And it would be—for Trump, it would be suicidally low to—just to try this again.”
* * * * *
During his years as President, Bill Clinton tried to win over Republicans by supporting measures they liked—such as making it harder for the poor to get welfare via the Federal government.
In the end, his efforts to win over Republicans convinced them that he was weak. So they tried to impeach him for getting oral sex from a White House intern.

Bill Clinton
Similarly, Barack Obama spent the first two years of his Presidency hopelessly trying to gain Republican support. This only led to Senate Majority Leader Mitch McConnell’s saying that his goal was to make Obama “a one-term President.”
At least for the moment, Democrats seem to have learned that cowering before bullies only wins you their contempt. As Niccolo Machiavelli warned in The Prince, his classic work on politics:
“From this arises the question whether it is better to be loved than feared, or feared more than loved. The reply is, that one ought to be both feared and loved, but as it is difficult for the two to go together, it is much safer to be feared than loved.
“For it may be said of men in general that they are ungrateful, voluble, dissemblers, anxious to avoid danger and covetous of gain. As long as you benefit them, they are entirely yours: they offer you their blood, their goods, their life and their children, when the necessity is remote, but when it approaches, they revolt.
“And the prince who has relied solely on their words, without making other preparations, is ruined. For the friendship which is gained by purchase and not through grandeur and nobility of spirit is bought but not secured, and at a pinch is not to be expended in your service.
“And men have less scruple in offending one who makes himself loved than one who makes himself feared. For love is held by a chain of obligations which, men being selfish, is broken whenever it serves their purpose. But fear is maintained by a dread of punishment which never fails.”

Niccolo Machiavelli
At the time of the 1938 Munich conference, a group of highly-placed German army officers were preparing to overthrow Adolf Hitler in a military coup. They counted on France and England to stand firm against the Fuhrer, handing him a major foreign policy defeat.
The officers intended to use that as an excuse to remove him from power—before he could plunge Germany into a disastrous war it could not win.
But when Britain and France surrendered Czechoslovakia to Hitler, his prestige in Germany shot to unprecedented heights. Knowing that overthrowing such a popular leader would be suicidal, the army officers abandoned their plans for a coup.
Convinced of his own invincibility, Hitler recklessly plunged ahead, demanding that Britain and France agree to cede Danzig, a city in northern Poland, to him.
This time the Allies held firm. The result was World War II.
At least for now, Nancy Pelosi and House Democrats fully understand the lesson of Munich. You must stand up to tyrants—or there will be no end to their evil demands.
The only question is: Will they continue to make use of that lesson—or once again allow themselves to be cowed by a ruthless tyrant?
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In Bureaucracy, History, Military, Politics, Social commentary on January 31, 2019 at 12:07 am
Billionaire Wilbur Ross—the Trump administration’s Secretary of Commerce—had a suggestion for the 800,000 Federal employees made destitute by the government shutdown: Take out a loan.
“So the 30 days of pay that some people will be out, there’s no real reason why they shouldn’t be able to get a loan against it, and we’ve seen a number of ads of financial institutions doing that.
“True, the people might have to pay a little bit of interest. But the idea that it’s ‘paycheck or zero’ is not a really valid idea.”

Wilbur Ross
It was a remark worthy of Marie Antoinette’s reported (but inaccurate) dismissal of the miseries of impoverished French citizens: “Let them eat cake.”
Meanwhile, the House of Representatives had undergone a massive sea-change in membership. Ending two years of Republican rule, Democrats had won 27 seats in that body during the November, 2018, elections.
And Nancy Pelosi had gone from being House Minority Leader to wielding the Speaker’s gavel as House Majority Leader on January 3.
Now she blasted Ross’ attitude during a press briefing:
“Is this the ‘Let them eat cake,’ kind of attitude? Or ‘Call your father for money?’ Or ’This is character-building for you; it’s all going to end up very well—just as long as you don’t get your paychecks?’”

Nancy Pelosi
Thirty-five days passed, with each one bringing increasing stress and fear to the lives of 800,000 Federal employees—those forced to not work and those forced to work for no pay.
Pelosi, meanwhile, did what many of her Democratic colleagues had long refused to do: She dared to stand up against Republicans’ “my-way-or-else” demands.
“The impression you get from the president is he would like to not only close government, build a wall, but also abolish Congress, so the only voice that mattered was his own,” Pelosi said in an interview on “CBS Sunday Morning.”
Pelosi, unlike many Democrats, realized this was America’s version of the Munich Conference: Democrats must hold firm against a tyrant’s extortionate demands. Otherwise, every time Trump didn’t get his way, there would be no end to such shutdowns in the future.
From the start, Pelosi insisted that Democrats would not cooperate with threats to shut down the government if Trump didn’t get the $5.6 billion he wanted for a border wall. And Democrats held firm, refusing to make concessions on the wall.
Second, Pelosi publicly stated that she would not let Trump make his annual State of the Union speech in the House of Representatives until the government was re-opened.
Since both the House and Senate must jointly issue an invitation to the President to make such an address, Pelosi’s veto effectively scotched Trump’s appearance.
For the publicity-addicted Trump, who revels in pontificating to adoring crowds, this was a major blow.
Trump refused to take “No” for an answer and dared Pelosi to deny him access.
She took him up on his dare and issued a statement saying that the speech was off—until the government re-opened.
Soon afterward, Trump agreed that the State of the Union address would have to be postponed.

Donald Trump giving State of the Union address in 2018
As CNN political analyst Chris Cillizza saw it: “What Pelosi seems to understand better than past Trump political opponents is that giving ANY ground is a mistake. You have to not only stand firm, but be willing to go beyond all political norms—like canceling the SOTU—to win.”
And Julian Zelitzer, another CNN political analyst, agreed: “Pelosi did not hesitate to use her political power aggressively. From the start of this process, she has remained steadfast in her insistence that closing the government was not a legitimate way to make demands for new forms of spending.
“While sometimes Democrats become leery about seeming too partisan and not being civil enough, Pelosi and the Democrats stood their ground. She drew a line in the sand and stuck by it.”
As Pelosi and the Democrats held firm, Republicans began getting desperate.
- They were being depicted in the news as extortionists while 800,000 of their fellow Americans suffered.
- Those businesses that served Federal employees—such as grocery stores and auto repair shops—were being starved of revenue.
- There was legitimate fear that the entire airline industry might have to shut down for lack of enough air traffic controllers to regulate air traffic.
- Worst of all for Republicans, chaos at airports threatened the travel plans of hundreds of thousands of people traveling to and from the upcoming Super Bowl. Most Americans might not know the name of their Senator, but they take their sports fetish seriously.
By January 25, the 35th day of the shutdown, an ABC News/Washington Post poll showed that 53% of Americans blamed Trump for the shutdown. His popularity had fallen to a historic low of 37%. And 60% disapproved of how he was handling negotiations to re-open the government.
So, on that same date, Trump did what his Hispanic-hating base thought was impossible: He caved.
He walked into the White House Rose Garden and said he would sign a bill to re-open the government for three weeks.
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In Bureaucracy, History, Military, Politics, Social commentary on January 30, 2019 at 12:08 am
“If we do not have these negotiations over border security with an open government, this president will continue to use this tool. And if we give in, if we pay the ransom now, what will happen the next time there’s a disagreement with this president and Congress?”
—Rep. Katherine Clark, D-Mass.
Republican leaders in Congress didn’t want to be blamed for shutting down the government. They seemed to persuade President Donald Trump to back away from his threat to do so if he didn’t get funding for his border wall.
The Senate passed a short-term funding measure without his wall money.
Vice President Mike Pence told lawmakers that Trump was open to approving it
Then the Fox News Network stepped in

“I think a lot of people who voted for President Trump counted on him on this particular issue,” Fox & Friends host Jedediah Bila said.
“I think their feet were to the fire. And you see a lot of people around the country saying: ‘Hold on a second. You told us that you weren’t afraid to shut down the government, that’s why we like you. What happened? You just gave in right away?’”
And Right-wing columnist Ann Coulter said: “Trump will just have been a joke presidency who scammed the American people, amused the populists for a while, but he’ll have no legacy whatsoever.
“Trump will very likely not finish his term and definitely not be elected to a second term.”
For a man who had “joked” that having a “President-for-Life” would be “great,” Coulter’s words were a nightmare.
On December 22, 2018, Trump shut down the government.
An estimated 380,000 government employees were furloughed and another 420,000 were ordered to work without pay.
And Trump told Congressional leaders the shutdown could last months or even years.

Donald Trump
For Trump, “the wall” was absolutely necessary—but not to keep illegal aliens out. They would go over, under or around it.
The real intent of the wall was to keep Trump in—the White House.
Trump’s fanatical base believed that a wall across the U.S.-Mexico border would stop all illegal immigration. And he knew that if he didn’t build it, they wouldn’t re-elect him.
Like Adolf Hitler, who ordered the complete destruction of Germany when he realized his dreams of conquest were over, Trump’s attitude was: “If I can’t rule America, there won’t be an America.”
Among the agencies directly affected by the shutdown: The Department of Homeland Security (DHS)—whose employees included Secret Service agents.
In short: The men and women guarding Trump were facing financial ruin—along with their families—because Trump didn’t get his way.
The effects of the shutdown quickly became evident:
- For weeks, hundreds of thousands of government workers missed paychecks.
- Smithsonian museums closed their doors.
- Trash piled up in national parks.
- Increasing numbers of employees of the Transportation Safety Administration (TSA)—which provides security against airline terrorism—began refusing to come to work, claiming to be sick.
- At the Federal Aviation Administration (FAA) many air traffic controllers called in “sick.” Those who showed up to work without pay grew increasingly frazzled as they feared being evicted for being unable to make rent or house payments.
- Due to the shortage of air traffic controllers, many planes weren’t able to land safely at places like New York’s LaGuardia Airport.
- Many Federal employees—such as FBI agents—were forced to rely on soup kitchens to feed their families.
- Celebrity chef Jose Andres launched ChefsForFeds, which offered free hot meals for government employees and their families at restaurants across the country.
- Many workers tried to bring in money by babysitting or driving for Uber,
Those employed by the government could at least expect to receive reimbursement for missed pay once the shutdown ended.
The question was: Would they be evicted, need medical care or be unable to pay for food before that happened?
For Federal contractors, the situation was far worse.
During the George W. Bush administration, Vice President Dick Cheney pushed to “outsource” many federal responsibilities to private contractors. This was hugely supported by Republicans and even many Democrats.
Now, in the wake of the shutdown, these employees faced a cruel reality: Since they were not Federal employees, they would not be reimbursed for the time they were forced to not work.
Adding insult to injury were the callous remarks of two Trump administration officials.
“A huge share of government workers were going to take vacation days, say, between Christmas and New Year’s,” said Kevin Hassett, chairman of the Council of Economic Advisers.

Kevin Hassett
“And then we have a shutdown, and so they can’t go to work, and so then they have the vacation, but they don’t have to use their vacation days. And then they come back, and then they get their back pay. Then they’re—in some sense, they’re better off.”
Another equally contemptuous remark was offered by Commerce Secretary Wilbur Ross—a billionaire. Asked on CNBC if he knew that many Federal employees had been reduced to going to food banks, Ross said yes, but he didn’t understand why.
His suggestion: They could just take out a loan.
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In Bureaucracy, History, Military, Politics, Social commentary on January 29, 2019 at 12:51 am
After selling out Czechoslovakia, Prime Minister Neville Chamberlain returned to England a hero. Holding aloft a copy of the worthless agreement he had signed with Germany’s dictator, Adolf Hitler, he told cheering crowds in London: “I believe it is peace for our time.”

Neville Chamberlain
Winston Churchill knew better, predicting: “Britain and France had to choose between war and dishonor. They chose dishonor. They will have war.”
Hitler—still planning more conquests—also knew better. Speaking of the British and French leaders he had intimidated at Munich, he later asserted: “Our enemies are little worms. I saw them at Munich.”
In March, 1939, the German army occupied the rest of Czechoslovakia.
Chamberlain would soon be seen as a naive weakling—even before bombs started falling on London.
Hitler next turned his attention—and demands—to Poland. But, this time, France and Britain refused to be intimidated—and pledged to go to war if Hitler invaded Poland.

Adolf Hitler and his generals
Hitler ordered the invasion of Poland on September 1, 1939—unintentionally triggering World War II.
In time, historians and statesmen would regard Munich as an object lesson in the futility—and danger—in appeasing evil and aggression.
But for the postwar Republican party, Hitler’s my-way-or-else “negotiating” methods would become standard operating procedure.
President Donald J. Trump used precisely the same “negotiating” style during his December 11, 2018 Oval Office meeting with then-House Minority Leader Nancy Pelosi (D-CA) and Senate Minority Leader Charles Schumer (D-NY).
And, true to his love of publicity, Trump made sure the meeting was televised live.

Nancy Pelosi
Trump opened with on a positive note: “We’ve actually worked very hard on a couple of things that are happening. Criminal justice reform…[Republican Kentucky U.S. Senator] Mitch McConnell and the group, we’re going to be putting it up for a vote. We have great Democrat support, great Republican support.”
But he soon moved to the matter he truly cared about: Demanding $5.6 billion to create a wall along the U.S.-Mexican border: “And one way or the other, it’s going to get built. I’d like not to see a government closing, a shutdown. We will see what happens over the next short period of time.”
“One way or the other”—“so doer so”—was a favorite phrase of Adolf Hitler’s, meaning: If he couldn’t bully his opponents into surrendering, he would use violence.
PELOSI: “I think the American people recognize that we must keep government open, that a shutdown is not worth anything, and that you should not have a Trump shutdown. You have the Senate. You have the House of Representatives. You have the votes. You should pass it right now.”
Trump claimed he could get “Wall” legislation passed in the House but admitted he didn’t have the 60 votes he needed in the Senate.
PELOSI: “Well, the fact is you can get it started that way.”
Trump then contradicted himself: “The House we can get passed very easily, and we do.”
PELOSI: “Okay, then do it.”
Trump kept insisting that “the House would give me the vote if I wanted it.”
PELOSI: “Well, let’s take the vote and we’ll find out.”
SCHUMER: “We do not want to shut down the government. You have called 20 times to shut down the government….We want to come to an agreement. If we can’t come to an agreement, we have solutions that will pass the House and Senate right now, and will not shut down the government. And that’s what we’re urging you to do. Not threaten to shut down the government because you can’t get your way.”

Charles Schumer
TRUMP: “We need border security. And I think we all agree that we need border security.”
SCHUMER: “Yes, we do.”
TRUMP: “The wall is a part of border security. You can’t have very good border security without the wall.”
PELOSI: “That’s simply not true. That is a political promise. Border security is a way to effectively honor our responsibilities.”
By “political promise,” Pelosi meant this is was an appeal Trump had made to his hardcore base. which he expected to re-elect him.
SCHUMER: “And the experts say you can do border security without a wall, which is wasteful and doesn’t solve the problem.”
TRUMP: “It totally solves the problem.”
Schumer then goaded Trump into taking responsibility for closing down the government if he didn’t get funding for his border wall.
TRUMP: “I’ll take it. You know what I’ll say: Yes, if we don’t get what we want, one way or the other…I will shut down the government. Absolutely.”
Thus, Schumer guaranteed that any government shutdown during the Christmas season would be blamed on Trump.
But Republican leaders in Congress didn’t want to be blamed for shutting down the government. They seemed to persuade him to back away from his threat. The Senate passed a short-term funding measure without Trump’s wall money.
Vice President Mike Pence told lawmakers that Trump was open to approving it
Then the Fox News Network stepped in.
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In Bureaucracy, History, Military, Politics, Social commentary on January 28, 2019 at 1:03 am
Robert Payne, author of the bestselling biography, The Life and Death of Adolf Hitler (1973), described Hitler’s “negotiating” style thus:
“Although Hitler prized his own talents as a negotiator, a man always capable of striking a good bargain, he was totally lacking in finesse.
“He was incapable of bargaining. He was like a man who goes up to a fruit peddler and threatens to blow his brains out if he does not sell his applies at the lowest possible price.”
By studying Hitler’s mindset and “negotiating” methods, we can learn much about the mindset and “negotiating” style of today’s Republican party.
A classic example of Hitler’s “negotiating style” came in September, 1938, when he focused his rage and aggression on Czechoslovakia.
Seven months earlier, he had absorbed Austria. He had done so by inviting its Chancellor, Kurt Shuschnigg, to Berlin. Then Hitler threatened Austria with invasion if Shuschnigg did not immediately agree to make his country a vassal-state of Germany.
This time, his threats were aimed at Neville Chamberlain, the prime minister of Great Britain, and Eduoard Deladier, the prime minister of France. Both countries had pledged to support Czechoslovakia against Hitler’s aggression.
Once again, he opened “negotiations” with a lie: The Czechoslovak government was trying to exterminate 3.5 million Germans living in the “Sudetenland.”
This consisted of the northern, southwest and western regions of Czechoslovakia, inhabited mostly by ethnic Germans.
Then he followed this up with the threat of war: Germany would protect its citizens and halt such “oppression.”
For British Prime Minister Neville Chamberlain, the thought of another European war erupting less than 20 years after the end of World War I was simply unthinkable.

The Cenotaph, in London, honoring the unknown British dead of World War 1
Something had to be done to prevent it. And he believed himself to be just the man to do it.
He quickly sent Hitler a telegram, offering to help resolve the crisis: “I could come to you by air and am ready to leave tomorrow. Please inform me of earliest time you can receive me, and tell me the place of the meeting. I should be grateful for a very early reply.”
Once again, another head-of-state was prepared to meet Hitler on his home ground. Again, Hitler took this concession as a sign of weakness. And Chamberlain’s use of such words as “please” and “grateful” only further convinced Hitler of another impending triumph.
Chamberlain was determined to grant his every demand—so long as this meant avoiding a second world war.
The two European leaders met in Berchtesgaden, Germany, on September 15, 1938.

Neville Chamberlain and Adolf Hitler
During their talks, Chamberlain said he had come to discuss German grievances. But, he added, it was necessary in all circumstances to exclude the use of force.
Hitler appeared to be shocked that he could be accused of such intentions: “Force? Who speaks of force?“
Then, without warning, he switched to an aggressive mode. He accused the Czechs of having mobilized their army in May. They had mobilized—in response to the mobilization of the German army.
“I shall not put up with this any longer,” shouted Hitler. “I shall settle this question in one way or another. I shall take matters in my own hands!”
Suddenly, Chamberlain seemed alarmed—and possibly angry: “If I understood you right, you are determined to proceed against Czechoslovakia in any case. If this is so, why did you let me come to Berchtesgaden?
“In the circumstances, it is best for me to return at once. Anything else now seems pointless.”
Hitler was taken aback by the unexpected show of defiance. He realized he was about to lose his chance to bully the British into accepting his latest demands.
So he softened his tone and said they should consider the Sudetenland according to the principle of self-determination.
Chamberlain said he must immediately return to England to consult with his colleagues.
Hitler appeared uneasy. But then the German translator finished the sentence: “…and then meet you again.”
Hitler realized he still had a chance to attain victory without going to war.
Chamberlain agreed to the cession of the Sudetenland. Three days later, French Prime Minister Edouard Daladier did the same. No Czechoslovak representative was invited to these discussions.
Chamberlain met Hitler again in Godesberg, Germany, on September 22 to confirm the agreements. But Hitler aimed to use the crisis as a pretext for war.
He now demanded not only the annexation of the Sudetenland but the immediate military occupation of the territories. This would give the Czechoslovak army no time to adapt their defense measures to the new borders.
To achieve a solution, Italian dictator Benito Mussolini suggested a conference of the major powers in Munich.
On September 29, Hitler, Daladier and Chamberlain met and agreed to Mussolini’s proposal. They signed the Munich Agreement, which accepted the immediate occupation of the Sudetenland.
The Czechoslovak government had not been a party to the talks. Nevertheless, it promised to abide by the agreement on September 30.
It actually had no choice. It faced the threat of an immediate German invasion after being deserted by its pledged allies: Britain, France and the Soviet Union.
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In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on January 23, 2019 at 12:56 am
Forty-nine years ago—on January 22, 1973—the United States Supreme Court struck down most of America’s laws banning abortion.
Its decision in Roe v. Wade marked the first time American law recognized the right of a woman to choose whether she wanted to become a mother.
Fittingly, on this date in 2019, New York Governor Andrew Cuomo signed into law the Reproductive Health Act that had just passed the Senate and Assembly.
The law
- Allows abortions after the 24-week mark to protect the mother’s health or in cases where the fetus won’t survive.
- Protects doctors from prosecution by shifting abortion law from the state’s penal code to its health code.
- Allows physician assistants, nurse practitioners and midwives to provide non-surgical abortion care.
The bill had been introduced to the Assembly in 2007 by Democratic Governor Eliot Spitzer. But it had been blocked for 11 years in the Republican-controlled State Senate.
Then, in November, 2018, Democrats overwhelmingly gained control of the Senate.
But since 1980, starting with Ronald Reagan, every “small government” Republican President has tried to force the government into the vagina of every abortion-seeking woman.
Several factors are responsible for all this fetus fanaticism.
First, there is an energized constituency for politicians willing to wave this red flag. Almost every major Republican Presidential candidate since Ronald Reagan has tapped into this voting bloc. And each has found plenty of votes to be gotten from it.
Second, many fetus fanatics simply dislike women. They fear and resent the women’s movement, which has given women the right to enter the workforce and compete directly with men.
And what they hate most is the legal right of a woman to avoid becoming pregnant via birth control—or to abort the result of a male’s sperm if they do. They see this as a personal rejection.

The Right is made up overwhelmingly of white males. And many of these men would feel entirely at home with a Christianized version of the Taliban. They long for a world where women meekly cater to their every demand and believe only what their male masters approve for them to believe.
Third, many fetus fanatics are not truly “pro-life.” They totally oppose abortion under most—-if not all—circumstances. But they also fully support:
- making military-style assault weapons available to nutcases;
- capital punishment;
- going to war for almost any reason;

Remington AR-15 Bushmaster
- wholesale massacres of wildlife;
- despoiling of the environment; and
- even nuclear war.
And many of those who fanatically defend the right of a fetus to emerge from the womb just as fanatically oppose welfare for those who can’t support that newborn.
Fourth, many fetus fanatics are “family values” hypocrites. For example: Representative Scott DesJarlais (R-TN), an anti-abortion, “family values” doctor, had an affair with a patient and later pressured her to get an abortion. He also agreed that his wife should have two abortions.
Fifth, many fetus fanatics feel guilty about their own past sexual transgressions—especially if these resulted in pregnancy. And they want to prevent others from living the same life they did.
Some of these people are well-intentioned. Even so, they usurp unto themselves a God-like right to intrude on the most intimate decisions for others—regardless of what those people may need or want.
Sixth, many fetus fanatics embrace their own pas. On one hand, most of them claim they want to “get government off the backs of the people.” That usually means allowing corporations to pollute, sell dangerous products and treat their employees as slaves.
On the other hand, they want to empower State and Federal authorities to prevent women from getting an abortion—even in cases of rape, incest, or to save the life of the mother.
Seventh, many leaders of the fetus fanatics movement are independently wealthy. This means that even if abortion could be outlawed for the vast majority, they could always bribe a willing doctor—-here or abroad—–to perform such an operation on their wife, daughter and/or mistress. For them, there is always an escape clause.
Eighth, many fetus fanatics are “pro-life” when it comes to fetuses, but hypocritically refuse to support the needs of children from low-income families.
Ninth, many fetus fanatics believe that since their religion teaches that abortion is wrong, they have a moral duty to enforce that belief on others.
Evangelical Christians harshly condemn Muslims—such as those in Afghanistan—for segregating women, forbidding them to drive and forcing them to wear burqas—black robes covering them from head to foot.

Taliban: Islam’s version of the “Right-to-Life” movement
But while they condemn Islamics for their general intolerance of others’ religious beliefs, they lust to impose their own upon those who belong to other churches. Or who belong to no church at all.
Tenth, many fetus fanatics are just as opposed to birth control as they are to abortion. Thus, when Georgia University law student Sandra Fluke asked Congress to require insurance companies to cover birth control, Rush Limbaugh branded her a “slut” and a “prostitute.”
* * * * *
It’s time to face the blunt truth: A “Conservative Victory,” as the title of Sean Hannity’s book puts it, would impose an anti-women Taliban on America.
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In History, Law, Politics, Social commentary on November 21, 2018 at 12:34 am
The Right’s war on freedom of choice continues.
- If Roe v Wade was overturned, 24 states would likely move to ban or severely limit abortion.
- Already, 21 states limit when a pregnant woman can get an abortion based on the age of the fetus.
- Twenty-four states have anti-abortion legislatures.
So what’s responsible for all this fetus fanaticism?
Several factors.
First, there is an energized constituency for politicians willing to wave this red flag. Almost every major Republican Presidential candidate since Ronald Reagan has tapped into this voting bloc. And each has found plenty of votes to be gotten from it.
Second, many fetus fanatics simply dislike women. They fear and resent the women’s movement, which has given women the right to enter the workforce and compete directly with men.
And what they hate most is the legal right of a woman to avoid becoming pregnant via birth control—or to abort the result of a male’s sperm if they do. They see this as a personal rejection.
Perhaps it reminds many of them of their own failures in romance/marriage.

The Right is made up overwhelmingly of white males. And many of these men would feel entirely at home with a Christianized version of the Taliban. They long for a world where women meekly cater to their every demand and believe only what their male masters approve for them to believe.
Third, many fetus fanatics are “pro-life” when it comes to fetuses, but hypocritically refuse to support the needs of children from low-income families.
Fourth, many fetus fanatics are “family values” hypocrites. For example: Representative Scott DesJarlais (R-TN), an anti-abortion, “family values” doctor, had an affair with a patient and later pressured her to get an abortion. He also agreed that his wife should have two abortions.

Scott DesJarlais
People like this subscribe to a philosophy of: “Do as I say, not as I do. And if I do it, it’s in the service of a Higher Cause and therefore entirely justified.”
Fifth, many fetus fanatics feel guilty about their own past sexual transgressions—especially if these resulted in pregnancy. And they want to prevent others from living the same life they did.
Some of these people are well-intentioned. Even so, they usurp unto themselves a God-like right to intrude on the most intimate decisions for others—regardless of what those people may need or want.
Sixth, many fetus fanatics embrace contradictory goals. On one hand, most of them claim they want to “get government off the backs of the people.” That usually means allowing corporations to pollute, sell dangerous products and treat their employees as slaves.
On the other hand, they want to insert the government into the vagina of every woman. That means empowering State and Federal authorities to prevent women from getting an abortion–even in cases of rape, incest, or to save the life of the mother.
Seventh, many leaders of the fetus fanatics movement are independently wealthy. This means that even if abortion could be outlawed for the vast majority, they could always bribe a willing doctor—-here or abroad—–to perform such an operation on their wife, daughter and/or mistress. For them, there is always an escape clause.
Eighth, many fetus fanatics are not truly “pro-life.” They totally oppose abortion under most—-if not all—circumstances. But they also fully support:
- making military-style assault weapons available to nutcases;
- capital punishment;
- going to war for almost any reason;
- wholesale massacres of wildlife;
- despoiling of the environment; and
- even nuclear war.
And many of those who fanatically defend the right of a fetus to emerge from the womb just as fanatically oppose welfare for those who can’t support that newborn.
Lucy, the famous cartoon character in Charles Schultz’ “Peanuts” series, once said: “I love humanity. It’s people I can’t stand.” With fetus fanatics, the line runs: “I love fetuses. Everything else is expendable.”
Ninth, many fetus fanatics believe that since their religion teaches that abortion is wrong, they have a moral duty to enforce that belief on others.
This is especially true for evangelical Christians. These are the same people who condemn Muslims—-such as those in Saudi Arabia–for segregating women, forbidding them to drive and forcing them to wear head scarfs or chadors—-loose, usually black robes.

Taliban: Islam’s version of the “Right-to-Life” movement
But while they condemn Islamics for their general intolerance of others’ religious beliefs, they lust to impose their own upon those who belong to other churches. Or who belong to no church at all.
Tenth, many fetus fanatics are just as opposed to birth control as they are to abortion. Thus, when Georgia University law student Sandra Fluke asked Congress to require insurance companies to cover birth control, Rush Limbaugh branded her a “slut” and a “prostitute.”
* * * * *
It’s time to face the blunt truth: A “Conservative Victory,” as the title of Sean Hannity’s book puts it, would impose an anti-women Taliban on America.
Thus, a woman who seeks to control her own destiny would be insane to vote for a right-wing candidate. Just as it would have been insane for a Jewish citizen to give his vote–and his life–to Adolf Hitler.
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PUBLIC ENEMY #1: THE RICH: PART THREE (OF FOUR)
In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on March 19, 2019 at 12:10 amThe 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.
According to statistics compiled by the Congressional Research Service (CRS) in 2014:
“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.
“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.’”
Among those companies that have chosen to betray their country in its time of economic need:
SOURCE: Source: Ways and Means Committee Democrats. GRAPHIC: Danielle Douglas – The Washington Post. Published Aug. 6, 2014.
The most popular countries for these “inversions” are:
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