Corporate Taxes and Lack of Legal Digital Literacy Allow Big US Corporations To Stash Billions Overseas, Pharma, Tech, All Well
Posted Mar 28 2011 12:33pm
If you listen to the video of the economist who talks about this, he tells you point blank that all you need to do is move a patent, bingo, done with a couple algorithms. Old time thinkers around the US probably still think there’s big factories and offices to be moved; however, not according to the way the law is interpreted today. It’s all digital, and again we have lawmakers who are what I call the “non participants” in this area of knowledge and kind of hang in the 70s with those same values and ideas on how business is run today. The President hired an “Algo Man” recently.
They all need some Algo Men, just like Wall Street has used for years. I guess when one sits in heavy denial it’s such a huge task of bringing this type of knowledge forward, I try here at the Quack as best I can. The value of the drug is with the patent, moved outside the US and perfectly legal. The IRS approved these deals, digital literacy again an issue perhaps along with being outnumbered? Digital literacy and the law has never been more important.
The 60 Minute report continues on with talking to the Cisco CEO, and pay attention to what he has to say. If you are not already aware Cisco is a huge tech investor in US Healthcare, so much in the fact that they have partnered with Health Insurer Untied to bring more technology to the frontline, and of course make money. Last results on stocks, everyone was disappointed in earnings, but do you think Cisco worries about that too much with all the money stock piled overseas, think about it, but it makes for big OMG news here, what’s up with this?
He has some ideas and talks about creating jobs and the one time tax break that brought some money back, but jobs, nope. We also have to be aware of the fact that we have technology working this angle to where jobs are not there as they used to be as well. That’s a tough nut to figure out as we see that everywhere with all companies, healthcare and beyond. No wonder he has time to Quack <grin>.
Now as we can move forward a bit, we have all these social networks that people tend to think they can’t live without. I’m not against social networks and use them myself, but we have millionaires in the Silicon Valley investing like they are going out of style and these are intangibles. Sure they create new jobs, but it’s temporary as many will not survive and then we are back to square one again, where’s the jobs? Nobody wants to pay taxes. Now further more, take a look at some of the biggest tech millionaires, they of course fall under tax laws too, but they “choose” to give back with groups like the Giving Pledge and promote others to do the same, no dummied here as they see the whole picture to include digital literacy, technology and so on. Even the social network folks are giving back as I think down deep they know what is going on with banks and other areas over inflating the madness here and I don’t think they even anticipated this occurring when the algorithms were written years ago. Normally geeks don’t think that way until the financial folks enter the picture.
The digital illiterate don’t see this as the knowledge and I think mental rationing is very limited and we are constantly reminded in the press of how illiterate we are as citizens and that obese people are evil at at the root of the cost of our healthcare. Granted there’s a ton of room for improvement here and higher costs are there, but they are not evil people like what is portrayed and not the full scape goats for our healthcare system. So this is kind of what we end up with, algorithms for profit and a bit of healthcare in there.
Back to the video, the one man comments that “We can’t write laws that lawyers can’t get around – TIME FOR DIGITAL LAWS. The legal system will study and take time to figure out how to manipulate. Shareholders once again are the primary concerns for those making money and we are the base of lot of revenue in the US. Cisco overseas is expanding because first of all there’s a need to be met, but secondly taxes. Ireland is quoted here on taxes being less expensive, well but look overall what this had done for them, their economy is not doing very well at all, so what is big business accomplishing you might wonder? Will these other countries at some point in time raise their tax rates? When they go broke, who’s there to bail them out? For this and many other questions for our US Congress to be more digitally educated, I thought having the IBM Watson computer with speech recognition was a great idea as event he least digitally literate representative could partake in at least querying information and everyone would see the same thing at the same time. Hey, Wall Street will invest and buy it if they already don’t have some of the technology in place today. It’s a fact of life.
So long and short of it this is what we have, digital illiteracy that allows those who do have and use it to get the full upper hand. We just keep digging to get money from where it is scarce, duh? We will shoot ourselves in the foot and never know what hit, while in the meantime we have the unrealistic intangible algorithms of Silicon Valley convincing us we can’t live without their social algorithms. Stop and think which do you need first if you were ill, the hospital or the social networks? You only have one body and and there’s truckload of social network algorithms to fascinate and distract you all day long. We’ve lost the balance here and digital illiteracy is a big part of the blame as you can and will be manipulated into a false sense of what really matters. All you need to do today is read the news about the intangibles that we all think we must have. If we don’t attach some of the technology to tangibles all we will have left are intangibles.
Bill and Melinda Gates even see the addiction and fascination with social networks and thus invested in an education program that runs on Facebook, might as well if people are sit there all day long, might as well try and get some educational exposure instead of playing meaningless games all day long.
We are about $1.2 trillion dumb and Cisco itself admits to over $40 billion overseas. Again when this was tried back in 2005 the complaint was about jobs not being created, well the kind of jobs they were looking for were the “old” jobs and nobody gave any thought to technology jobs and that’s why it didn’t work. Intel’s CEO has been very vocal in this area too about how they can’t find enough educated individuals in the US.
Here’s the entire 60 Minute report below and perhaps we need to get better educated in more ways than one to bring both tax and corporate money back to the US. As you can read,below, all it takes is a computer formula (aka an algorithm) or code registered over seas, there’s the tax liabilities and this says very little for the digital illiterate making laws today. They have been outdone and we all suffer as a result. BD
(CBS News) Our government is in knots over ways to lower the federal budget deficit. Well, what if we told you we found a pot of money - over $60 billion a year - that could be used to help out?
That bundle is tax money not coming in to the IRS from American corporations. One major way they avoid paying the tax man is by parking their profits overseas. They'll tell you they're forced to do that because the corporate 35 percent tax rate is high in relation to other countries, and indeed it seems the tax code actually encourages companies to move their businesses out of the country.
The population of the town of Zug is 26,000; the number of companies in the area is 30,000 and growing at an average rate of 800 a year. But many are no more than mailboxes.
Texas Democratic Congressman Lloyd Doggett questions whether the recent moves of several companies are legit. "A good example is one of my Texas companies that's been in the news lately, Transocean," Rep. Doggett told Stahl.
"Or Coca-Cola could take the recipe out of the vault, put it in a Swiss vault," he said.
"And then it's Swiss?" Stahl asked.
"Yeah," he replied.
When a formula or a computer code is registered abroad - say in Zug - a U.S. company is allowed to claim a lot of its taxable profits are there, even if most of its sales are