Damn You Mitt Romney!

Tax-Shelter


Google Reportedly Dodged $2 Billion in Taxes With Bermuda Tax Haven

Google managed to avoid paying about $2 billion in global income taxes last year by moving the vast majority of its pre-tax profit to a shell company in Bermuda, Bloomberg reported Monday.

The search giant shifted some $9.8 billion in revenues — about 80% of its total pre-tax profit — to a tax haven in Bermuda, roughly twice the amount Google placed in Bermuda three years earlier, according to the report, which is based on company filings.

By sheltering money in Bermuda, Google managed to cut its overall effective tax rate to 21% in 2011, down from 28% in 2008. Google’s tax rate on the profit it earned overseas was just 3.2%.

This strategy may be controversial, but it’s certainly not illegal. Under U.S. law, businesses are allowed to move payments from subsidiaries in countries like Ireland and the Netherlands to Bermuda, where it won’t be taxed. According to Bloomberg, these tactics are apparently known as the Double Irish and Dutch Sandwich.

Apple, another top tech company, is said to have pioneered this tax trick to shave billions of dollars off its tax bill each year. An investigation by the New York Times a few months ago found that one-third of Apple’s pre-tax revenue in 2004 was said to come from Ireland and the company has set up a tax haven in the British Virgin islands.

Microsoft, HP and other big tech companies have all reportedly avoided paying some portion of their taxes by shifting money to various offshore accounts as well.


This is a clear cut case of tax avoidance. The difference between tax evasion and tax avoidance is that the former is a crime but the latter is perfectly legal. Rich people move their money around to where taxes are lowest. If you can legally save a billion or two on your taxes for yourself and your fellow shareholders, why not?

That is the problem with all the “tax the rich” arguments. When taxes get to high in one place rich people can afford to move somewhere else. That’s what the Laffer curve really shows.

Does that mean that rich people shouldn’t have to pay taxes? Hell no! Mitt Romney paid millions of dollars in taxes last year. But there is a limit to how much milk you can get by beating the cow.

BTW – Last time I checked, the guys who run Google are big time Obama supporters.


Laffer Curve

Laffer Curve


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34 Responses to Damn You Mitt Romney!

  1. lyn5 says:

    I still want my Obamaphone and free birth control. Idiots.

    • myiq2xu says:

      Does the Obamaphone works better than Obamacare?

      • 49erDweet says:

        My ancient disabled sister, who lives with us now that the rest of the family is gone, probably qualifies for one. Except her simple basic phone costs less than $30 per annum on the prepaid plan I found. Maybe in a few years when the phone wears out I will think about an O-fone for her, but is it worth the grief to jump thru hoops and apply now? Don’t think so.

  2. 49erDweet says:

    Sigh….. If Google had only asked I’d have gladly gone with the money and watched it for a few months. You’d think a loyal gmail user would get a break.

  3. myiq2xu says:

    One of the absurdities of the “tax the rich” theory is that we don’t tax wealth, we tax income.

    • 49erDweet says:

      Would never want to offend our youthful entertainer driven base. We just want “evil corporations” to pay and pay and pay and pay, cause they are evil and vicious and heartless …………..and can’t vote.

  4. myiq2xu says:

    ZOMG! Forgetting Sarah Marshall is on again!

    That movie would suck even without Russell Brand in it.

  5. DeniseVB says:

    So when jKerry berthed his gazillion dollar yacht (made in another country, not in MA which has a suffering yacht building industry) in another state, that was tax avoidance? How lucky for MA to have him for a Senator ! /s

  6. HELENK says:

    http://www.breitbart.com/Big-Government/2012/12/10/California-free-cell-phone-homeless

    California has budget problems , but what the hell, so our school districts owe billions on million dollar loan, why should our homeless not have cell phones

    • 49erDweet says:

      This is just dumb. And typical of idiots dancing faster and faster in a fiscal frying pan, hoping their feet will somehow become cool. So these should be called “Moon phones”?

      Interesting dichotomy with the alleged purpose for the phones and the service level rendered. How does anyone looking for work or services use 250 text messages a month? Fifty would be adequate. These are first and foremost vote buying gifts.

  7. DandyTiger says:

    This can’t be right, Google and Apple are hip and cool. You must have your facts wrong. /s

    • angienc says:

      No Dandy — you’ve got it backward:Google & Apple are hip & cool, therefore it is OK when they do it.

  8. insanelysane says:

    It just comes down to integrity and honesty and love of country. Mitt Romney paid lots of taxes and donated 30% of his income last year because he is a good person.Principles. I haven’t seen any trace of that in Obama supporters.

  9. tommy says:

    ‘Worlds worst boss gets sued for £30,000 – A bullying laundry owner from town of Mildura, Australia has been fined £30,000, after he threatened his employees to burn them with acid, set his dogs on them and taunted female workers about rape. Kevin Andrews, 61, was found guilty of abuse against former workers at Mallee Laundry and Linen Services. The magistrate said that Andrews had “threatened the employees that he would dissolve them in acid, a substance that was available to them in the workplace”.’ Those ‘evil’, ‘rich’ small business owners. /s

  10. angienc says:

    Arbitrage — how the fuck does that work?

    ********************************************

    Seriously, you’re asking people who think the US Tax Code provides *tax breaks* to companies *for* moving jobs overseas based on the word of a guy who doesn’t know what P/E ratio stands for to comprehend things that are clearly *above their paygrade.*

    The Age of Disenlightment sucks.

    • yttik says:

      I blame poor math skills. Seriously, I actually lost an argument about how 25% of ten million is more than 30% of ten thousand. No it’s not, he only pays 25% which is less taxes than his secretary pays!

      But it’s not just people in general, I think President Obama and half our congresscritters don’t get it either.

      • votermom says:

        Try explaining how a 1% increase in your tax rate means that the amount you pay in taxes WILL go up way more than 1%
        They look at you like you’re speaking Martian.

  11. foxyladi14 says:

    they slept through that class just like pressy 😆

  12. John Denney says:

    If increasing taxes reduces the tax revenues, the taxing authority is on the wrong side of the Laffer curve. Keep in mind, too, that government’s job is not to maximize tax revenues. The job of the government (We the People) is to protect each person’s life, liberty, and property.

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