{"id":36668,"date":"2010-10-21T01:01:01","date_gmt":"2011-05-19T00:25:26","guid":{"rendered":""},"modified":"2011-05-19T00:25:26","modified_gmt":"2011-05-19T00:25:26","slug":"liberal_hypocrisy_google_exploits_loopholes_pays_2_4_tax_rate","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2010\/10\/21\/liberal_hypocrisy_google_exploits_loopholes_pays_2_4_tax_rate\/","title":{"rendered":"Liberal Hypocrisy: Google Exploits Loopholes, Pays 2.4% Tax Rate"},"content":{"rendered":"
\n

RUSH: ‘Google Inc. cut its taxes by $3.1 billion in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda. <\/p>\n

‘Google\u2019s income shifting — involving strategies known to lawyers as the ‘Double Irish\u2019 and the ‘Dutch Sandwich\u2019 — helped reduce its overseas tax rate to 2.4 percent, the lowest of the top five U.S. technology companies by market capitalization, according to regulatory filings in six countries.\u2019 Now, the immediate reaction is: ‘You liberal hypocrites! Eric Schmidt, Sergey Brin, all you guys at Google. Here you are preaching all this liberalism to everybody else. You\u2019re spying on us with your street cameras. You\u2019re denouncing the fact that people don\u2019t pay enough taxes. Look what you do!\u2019 That\u2019s the first reaction. ‘Rich liberals, hypocrites. Liberalism\u2019s good for everybody but them.\u2019 <\/p>\n

Like Steve Jobs. Look at Google. It\u2019s going to all kinds of obscure, elaborate lengths to avoid taxes, and all of them are legal. And look at Jobs. Look at Apple. He ships everything from China. Nonunion, Foxconn manufacturers, Shenzhen. He ships them FedEx, nonunion. You know what an iPhone…? I read this the other day. An iPhone made in America would cost $5,000, which is why they\u2019re not made here. Nobody could afford them. An iPhone made in America right now, given what unions charge and everything thrown in, is $5,000. That\u2019s why an iPhone costs anywhere from $300 to $500 made in China. No unions involved at any level — shipping, manufacturing — and yet Jobs a big liberal, with Algore on the board, promoting big liberal causes. And yet they don\u2019t go out of their way to be good liberals. They don\u2019t go out of their way to pay more taxes. <\/p>\n

Why? Why is this? They\u2019re businesspeople first. Liberalism is a close second. Publicly they\u2019re liberals first. Behind the closed doors of the boardrooms, they are businessmen first. And everything they\u2019re doing is legal. I remember when I openly announced, proudly so, that I was leaving New York to avoid confiscatory taxation. I had people telling me I was not being patriotic. I was being unpatriotic. I had a duty to stay and ‘pay my fair share\u2019 in New York. I said, ‘No, I think I\u2019m being smart. I\u2019m keeping more. I think I do better with my money than some unnamed, unknown bureaucrat and bureaucracy. I\u2019ll do far more for people with my money than the government will do with it.\u2019 That\u2019s my attitude. Now, Google, if you had a chance to only pay 2.4% in taxes, would you take it? The liberal would have you believe he wouldn\u2019t, that he\u2019ll pay what\u2019s his fair share because he\u2019s a good citizen and a good person. But yet there are the laws on the books.<\/p>\n

And note where this money is. And this is the second key. Note where Google\u2019s money is that they\u2019re not paying taxes. It\u2019s not domestic. It\u2019s foreign. There\u2019s a column in the Wall Street Journal that\u2019s a companion piece, unintended, of this Google story. It\u2019s a way (government policy-wise, tax policy-wise) to get all this money that American corporations that operate internationally are sheltering overseas. Get it circulating back in America. It\u2019s a way to do it that would ramp up economic growth, that would cause hiring. Imagine if Google could take this $60 billion and pump it into growth of the business rather than pay taxes on it, which is what they\u2019re doing. And look at what\u2019s happening to them! They\u2019re growing by leaps and bounds. I mean, the anecdotal evidence, historical evidence, empirical evidence is there in front of everybody\u2019s face to see exactly what needs to happen to cause this economy to rebound. <\/p>\n

Anyway, set the table, I want to get into more detail as the program unfolds. I\u2019m a little long here, didn\u2019t want to stop myself \u2019cause it was too good in this rant. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

All right: ‘Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes.\u2019 And of course they\u2019re wringing their hands, ‘$60 billion lost to the government!\u2019 The focus here should not be the 2.4% tax rate; it\u2019s the fact that they\u2019re keeping the money offshore, not bringing it onshore, to avoid double taxes. Forget the fact that they\u2019re liberals. I mean the hypocrisy is what it is. But the tax law here is another thing. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Google gave the Obama campaign $803,436. You could say that it was foreign money now, given how much foreign money they are not paying taxes on at Google. Google was Obama\u2019s fifth largest contributor, a special interest. Now, here\u2019s the headline again: ‘Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes.\u2019 Of course the story is the poor government is out $60 billion. That\u2019s not the way to look at this. Why feel sorry for a fatted calf? What in the world is there to feel sorry about for the US government? Should they not feel sorry for us? At any rate, I keep distracting myself here and I\u2019m gonna stay focused on this. <\/p>\n

‘Google\u2019s income shifting — involving strategies known to lawyers as the ‘Double Irish\u2019 and the ‘Dutch Sandwich\u2019 — helped reduce its overseas tax rate to 2.4 percent, the lowest of the top five U.S. technology companies by market capitalization, according to regulatory filings in six countries.\u2019 Have you ever heard of the Double Irish or the Dutch Sandwich? Do you have tax lawyers advising you of these strategies? It sounds like a Kennedy maneuver, actually, the Double Irish, the Dutch Sandwich, the waitress sandwich. It sounds like a Kennedy, Chris Dodd maneuver. I didn\u2019t know about them, but they\u2019re legal, they\u2019re entirely legal. Here\u2019s Google, big libs, Steve Jobs, big lib, they want you to think that they pay their fair share, when everybody else pays their fair share, and look what they do. Every chance they get to avoid paying taxes, they take it. ‘The U.S. corporate income-tax rate is 35 percent. In the U.K., Google\u2019s second-biggest market by revenue, it\u2019s 28 percent.\u2019 <\/p>\n

From the UK Times, December of last year: ‘Google Pays No Tax on &pound;1.6bn in Britain.\u2019 Google is accused of ducking its social responsibility. ‘Google, the internet giant whose informal corporate motto is ‘don\u2019t be evil,\u2019 did not pay any tax on its &pound;1.6 billion advertising revenues in Britain last year.\u2019 And they\u2019re eschewing their corporate social responsibility. (interruption) How the bloody heck did they get away with it? They bloody heck got away with it because it\u2019s legal. What did I tell you the other day, Snerdley, about who writes the tax laws? What did I tell you about why they\u2019re not going to be changed? What was the point of, you know, all this talk about we need a flat tax, FairTax, yeah, we do, no question about it. Who writes these tax laws? All these liberals who claim the rich aren\u2019t paying their fair share. Really? The rich aren\u2019t paying their fair share; is that right? How does that happen? It happens when loopholes are put in there by liberal Democrats. Democrats have been running the House Ways and Means Committee up \u2019til 1994 for 40 years, and since 2007 they have been running the Ways and Means Committee. <\/p>\n

Now, I want to go to a column that ran a couple days ago in the Wall Street Journal: ‘The Overseas Profits Elephant in the Room.\u2019 It\u2019s co-written by John Chambers and Safra Catz. John Chambers is the CEO of Cisco. They make routers and stuff, another high-tech firm. ‘During last year\u2019s ‘Jobs Summit\u2019 –‘ you know, I\u2019d forgotten about that. Do we not need another jobs summit? Remember that jobs summit? We had a jobs summit in December at the White House, and everybody went away to their study groups, came back in three hours, reported to the leader of the regime, and that was supposed to be problem solved. Well, Mr. Chambers says: ‘During last year\u2019s ‘Jobs Summit,\u2019 President Obama said he was open to any good idea to get the economy moving again. Today he should be especially so, since Washington\u2019s many monetary and fiscal policy decisions have not been able to spur the robust growth or job expansion that we all would like. And yet there is a simple idea — the trillion-dollar elephant in the room — that has apparently been dismissed for no good reason. <\/p>\n

‘One trillion dollars is roughly the amount of earnings that American companies have in their foreign operations — and that they could repatriate to the United States. That money, in turn, could be invested in U.S. jobs, capital assets, research and development, and more. But for U.S companies such repatriation of earnings carries a significant penalty: a federal tax of up to 35%. This means that U.S. companies can, without significant consequence, use their foreign earnings to invest in any country in the world — except here.\u2019 Which is what Google is doing. They\u2019re doing it. They are avoiding the 35% tax rate here. If they expatriate the money back they\u2019re looking at double taxation. ‘But, Rush, but, Rush, they\u2019re liberals and they\u2019re good citizens and they care about funding the government.\u2019 No, they don\u2019t. They care about you doing it. They thrive on you thinking they\u2019re good citizens. They thrive on you thinking they\u2019re good people. <\/p>\n

Remember the ‘we\u2019re supposed to look the other way\u2019 monologue the other day after Dingy Harry and Sharron Angle\u2019s debate? We\u2019re supposed to look the other way while they drive women off the bridge and kill \u2019em. We\u2019re supposed to look the other way while they promote abortion. We\u2019re supposed to look the other way while they don\u2019t pay, all because they\u2019re good people, all because they have compassion. We\u2019re supposed to look the other way and really ignore all the rotgut things that they do, because they are good people. They\u2019re liberals. They pay their fair share. They believe in government.<\/p>\n

‘The U.S. government\u2019s treatment of repatriated foreign earnings stands in marked contrast to the tax practices of almost every major developed economy, including Germany, Japan, the United Kingdom, France, Spain, Italy, Russia, Australia and Canada, to name a few. Companies headquartered in any of these countries can repatriate foreign earnings to their home countries at a tax rate of 0%-2%. That\u2019s because those countries realize that choking off foreign capital from their economies is decidedly against their national interests.\u2019 By the way, have you checked out Canada\u2019s economic growth rate since 1997? I mean just a few miles to the north of us there is an economic boom going on in what arguably is a socialist country. Check it out the next time you have a chance to check something out. ‘Especially with corporate bond rates falling below 4%, it\u2019s hard to imagine any responsible corporation,\u2019 including Google, ‘repatriating foreign earnings at a combined federal and state tax rate approaching 40%.\u2019 Why would they do it? <\/p>\n

‘Many commentators have pointed to the large cash balances sitting on U.S. corporate books as evidence that the economy is still stalled because companies aren\u2019t spending,\u2019 or because small business isn\u2019t borrowing. ‘That analysis misses the point. Large cash balances remain on U.S. corporate books because U.S. companies can\u2019t spend their foreign-held cash in the U.S. without incurring a prohibitive tax liability.\u2019 Now, some people would say it\u2019s only 35%. They get to keep 65%, why would they want to screw the government out it? If there\u2019s a place to spend it where it\u2019s taxed less, that\u2019s what they\u2019re going to do. Remember, a company doesn\u2019t exist to support the government. A company doesn\u2019t exist to give you health care. A company does not exist to provide jobs. A company does not exist to make sure the community remains crime free. A company does not exist to make sure that you don\u2019t eat trans fat. A company exists to make a profit based on selling a product or service that customers want, desire, love, and like, and whose shareholders invest in and are rewarded as their investment increases in value. A to B, simple. And anything that gets in the way of that pattern is gonna harm the corporation, they\u2019re not going to do it, unless they\u2019re scared to death of government, have to pay protection racket fees, bribes, and what have you, in order to operate. <\/p>\n

Back to Mr. Chambers\u2019 piece here: ‘By permitting companies to repatriate foreign earnings at a low tax rate — say, 5% — Congress and the president could create a privately funded stimulus of up to a trillion dollars,\u2019 private sector stimulus. ‘They could also raise up to $50 billion in federal tax revenue. That\u2019s money the economy would not otherwise receive. The amount of corporate cash that would come flooding into the country could be larger than the entire federal stimulus package, and it could be used for creating jobs, investing in research, building plants, purchasing equipment, and other uses. It could also provide needed stability for the equity markets because companies would expand their activity in mergers and acquisitions, and would pay dividends or buy back stock. And when markets go up, confidence increases and businesses and consumers begin to spend.\u2019 It\u2019s simple.<\/p>\n

‘The $50 billion boost in federal tax revenue, meanwhile, could be used to help put America back to work. For example, Congress could use it to give employers — large or small — a refundable tax credit for hiring previously unemployed workers (including recent graduates). The tax credit could equal up to 50% of a worker\u2019s first-year and second-year wages, capped at $12,500 per year (or $25,000 total per new hire). Such a program could help put more than two million Americans back to work at no cost to the government or American taxpayers. How\u2019s that for a good idea?\u2019 John Chambers, chief executive officer, Cisco Systems. The coauthor, Ms. Catz, president of Oracle, two high-tech corporations, there you have it. A trillion dollars is over there, and over there, up there, and down there. It ain\u2019t here. Could be here. It\u2019s in Canada because Canada only charges 2% tax rate. We charge 35%, and of course with this regime, corporations are evil, they\u2019re the enemy, they\u2019re the target. Anybody suggesting this seriously would be accused of being in the back pockets of the special interests and so forth. And, of course, it is considered immoral for a corporation to only pay 5% in taxes, for some reason it\u2019s immoral. <\/p>\n

So why would Google pay 35% when they can pay 2.4%? ‘Because, Mr. Limbaugh, they\u2019re good liberal corporate citizens. Yeah, you dummkopf, that\u2019s what they want you and everybody to believe, Mr. New Castrati. If all corporations are evil, how does Google get a pass just because they\u2019re a bunch of liberals anyway? <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: ‘Google Inc. cut its taxes by $3.1 billion in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda. ‘Google\u2019s income shifting — involving strategies known to lawyers as the ‘Double Irish\u2019 and the ‘Dutch Sandwich\u2019 — helped reduce its overseas tax rate […]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nLiberal Hypocrisy: Google Exploits Loopholes, Pays 2.4% Tax Rate - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2010\/10\/21\/liberal_hypocrisy_google_exploits_loopholes_pays_2_4_tax_rate\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Liberal Hypocrisy: Google Exploits Loopholes, Pays 2.4% Tax Rate - 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