Geithner report signed by President details tax cut success: Rich Google ally evades taxes.
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The Tax Haven That’s Saving Google Billions
The heart of Google’s (GOOG) international operations is a silvery glass office building in central Dublin, a block from the city’s Grand Canal. In 2009 the office, which houses roughly 2,000 Google employees, was credited with 88 percent of the search juggernaut’s $12.5 billion in sales outside the U.S. Most of the profits, however, went to the tax haven of Bermuda.
To reduce its overseas tax bill, Google uses a complicated legal structure that has saved it $3.1 billion since 2007 and boosted last year’s overall earnings by 26 percent….
In Bermuda there’s no corporate income tax at all. Google’s profits travel to the island’s white sands via a convoluted route known to tax lawyers as the “Double Irish” and the “Dutch Sandwich.” In Google’s case, it generally works like this: When a company in Europe, the Middle East, or Africa purchases a search ad through Google, it sends the money to Google Ireland. The Irish government taxes corporate profits at 12.5 percent, but Google mostly escapes that tax because its earnings don’t stay in the Dublin office, which reported a pretax profit of less than 1 percent of revenues in 2008.
Irish law makes it difficult for Google to send the money directly to Bermuda without incurring a large tax hit, so the payment makes a brief detour through the Netherlands, since Ireland doesn’t tax certain payments to companies in other European Union states. Once the money is in the Netherlands, Google can take advantage of generous Dutch tax laws. Its subsidiary there, Google Netherlands Holdings, is just a shell (it has no employees) and passes on about 99.8 percent of what it collects to Bermuda. (The subsidiary managed in Bermuda is technically an Irish company, hence the “Double Irish” nickname.)”
When Eric Schmidt hears Obama — Schmidt’s guy — talk about “tax the rich” — he just laughs, sends out for a “Double Irish” with a side of the “Dutch Sandwich.” Then gives Obama millions from his Irish-Dutch-Bahamian laundry to pump out the laughable “tax the rich” rhetoric for the gullible — millions Schmidt earned by laundering Google’s profits through distinctly non-American taxpaying turf like Ireland, the Netherlands and Bermuda.
And the billionaire Eric Schmidt, who gets his billions from this game, laughs all the way to the bank.
Which is to say, Eric Schmidt and Google are the poster children for the Obama Scam.
Knowing full well that the Bush tax cuts… the Clinton tax cuts, the Reagan tax cuts and the JFK tax cuts… all worked — and must be legally noticed in the Economic Report of the President — the fact of this repeated success is buried at the back of the book in the small print.
While in the front of the book Obama goes inveighing against the rich.
In other words, this whole “tax the rich” business is nothing but a cynical game. An ideological scam. And if you don’t believe this, look at how the left got itself worked up over at the Huffington Post back in the fall campaign when the issue was Mitt Romney’s off-shore investments. Wrote a huffy HuffPo:
But by parking money in countries with tiny tax rates — thus putting it beyond the reach of the American government — wealthy businesses and individuals cost the federal government roughly $100 billion every year, according to a 2011 report from the California Public Interest Research Group. That’s money that doesn’t make it into the federal government’s hands, even though it would probably come in useful — again, given the trillion-dollar-plus national deficit.
Oh they eventually — that would mean once — managed to burp out the name “Google.” But outrage? Calling out Obamateer Eric Schmidt as they called out Mitt Romney? Are you kidding? Which raises the interesting question: Where are all of lefty Arianna Huffington’s millions parked?
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?
H/T to National Review Online