Friday, April 26, 2013

What Does It Mean To Be An “American” Corporation?

The US Territory of Puerto Rico, with 3.5 million US citizens has been coded as a Foreign Country by this establishment so they have an offshore tax shelter for tax evasion with the benefit of US protection. This is a scam to the US Tax payer.

I also ask, if these companies, who make business in Puerto Rico make such extraordinary amount of money..... how come Puerto Ricans are under the poverty line with uneployment at >17% and per-capita at $14,000.

If this is so good for the economy, how come 600,000 persons left Puerto Rico in the last decade and relocated to one of the 50 states?
Miriam Ramirez

What Does It Mean To Be An “American” Corporation?:
Are American Multinationals Really American?
For all intents and purposes giant “American” multinational corporations have transformed into entities with completely different interests from their American workers, customers, communities, citizens and government. These corporations are no longer operating in the interest of America or any country, while claiming the benefits of being American corporations (when it suits them.)

For example, the giant American multinational corporations are now set up and structured to avoid paying taxes here, or to any country. They set countries against each other in their hunt for low-wage labor, subsidies and advantages in markets.

Some companies are even “American” when it suits them, and not “American” when it does not. The post, Unraveling The Romney/Bain Tax Story drew on a New York Times report, Offshore Tactics Helped Increase Romneys’ Wealth.

From the post:
"Why is part of the same company set up based in Delaware, and part in the Cayman Islands or Luxemburg or Bermuda? Because the functions of the American-based company are those functions that avoid taxes on foreign entities, and the functions of the Caymans-based part are the functions that would have to pay US taxes if it was in the US. But in reality it is the same company — except for tax purposes! 

Here is the explanation of the foreign-based parts, from the Times article:
"Had those funds been set up in the United States, the Romneys and other American investors would probably have been subject to certain federal taxes for their ownership of “controlled foreign corporations.” Setting up the funds in the Caymans allowed them to avoid those taxes."