Monday, July 06, 2015

The Inverts, Income Taxes, and Trade Treaties

Read between the lines in this news item, and you'll have a good inkling of exactly why the Republicans voted to give Obozo whatever he wants in the new trade treaties.

The Obama administration quietly handed a victory to U.S. companies that avoid taxes by claiming a foreign address, suggesting that virtually all of them are still eligible for government contracts....

....Ingersoll-Rand’s most sweeping argument is that the government’s obligations under trade agreements trump the contracting law. Ireland and the U.S. are both bound by the World Trade Organization’s Government Procurement Agreement, which requires members not to discriminate against each other’s companies in government contracting....

But "eligible for contracts" is only one part of it.  The OTHER part is that the inverts (I-R, Burger King, Medtronic, etc.) do not pay US corporate income taxes.

If you think that the budget deficit is large now, wait about 3-5 years.

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