GTM

Day Trader / Journalist / Market manipulation investigator

  • C.J.
    The problem isn't that corporations avoid American corporate income taxes. The problem is that we have corporate income taxes. Cut the spending and cut the taxes, and there will be less reason for corporations to locate offshore in so-called tax havens. Corporations doing so is a SYMPTOM of the problem. The problem is in Washington and New York, where tax-and-spend and money creation have run amok. Cracking down on tax havens is like putting a band-aid on a bullet wound.
  • The problem is taxes, period. I will agree with those who think we should eliminate Corporate Income Taxes as soon as I hear just one of them say that we should also eliminate personal Income Taxes. I won't be holding my breath.

    The I.R.S. exists in order to feed the Banks/Federal Reserve. If they take my money (and I have an L.L.C.) then why not take I.B.M.'s money too? After all, profit is profit. I just don't have the option/resources to effectively incorporate in the Cayman Islands.
  • Thanks for the thoughtful reply. Here's another option:

    "The most brilliant banking model in our national history was established in the first half of the eighteenth century, in Benjamin Franklin's home province of Pennsylvania. The local government created its own bank, which issued money and lent it to farmers at a modest interest. The provincial government created enough extra money to cover the interest not created in the original loans, spending it into the economy on public services. The bank was publicly owned, and the bankers it employed were public servants. The interest generated on its loans was sufficient to fund the government without taxes; and because the newly issued money came back to the government, the result was not inflationary. The Pennsylvania banking scheme was a sensible and highly workable system that was a product of American ingenuity but that never got a chance to prove itself after the colonies became a nation. It was an ironic twist, since according to Benjamin Franklin and others, restoring the power to create their own currency was a chief reason the colonists fought for independence. The bankers' money-creating machine has had two centuries of empirical testing and has proven to be a failure. It is time the sovereign right to create money is taken from a private banking elite and restored to the American people to whom it properly belongs." -Dr. Ellen Brown

  • Craig
    The statement that capitalist corporations "were designed to replace the need for socialized government welfare programs" is absolutely absurd. It first assumes that there is an inherent need for wefare programs, an assumption that is not a fundamental truth. Second, it implies that government should provide welfare programs. From this faulty base of reasoning, the next illogical leap is to conclude that, in the absence of a socialist welfare government, capitalist companies were designed to fill the void. The cause/effect in this scenario is beyond belief.
  • Fundamental truths. That's ironic coming from a Flowserve employee. So no comment on how Flowserve was one of the corporations profiting from the terrorist state of Iraq.

    This is a famous company. They were caught as a main player in the Oil for Food kickback scam. Ever wonder how much of the money they caught on Saddam Hussein came from Flowserve kickbacks?

    What are some fundamental truths on the ethics of stealing from a U.N. humanitarian program--I wonder.

  • Liberalidiots
    If you take away the tax haven from our USA corporations they will just move out of the country. This going to happen anyway so your article is a typical liberal meaningless ill informed piece of crap.
  • Thanks for the kind words and for reading this piece of crap story. I'm glad it got a reaction.

    When it comes time to raise your taxes, please don't complain. Enjoy your days with those who believe taxing wages is more important than taxing corporate profits. At some point the last dollar will be whipped out the last debt slave. Those who live in fear can then rejoice and marvel at the dystopia they've created.
  • van
    The post by one Anthony Travers tells me that there is at least ONE person at this site that knows what he's talking about.

    I've skimmed the articles here: no ref's to the current admin criminality- only the last admin's doings- not very objective. the current Wall Street/Capital Hill developments are wide open for this kind of info- too bad.
  • Feel free to share what you have. This site has no interest in partisan politics. Understanding how we are being manipulated, marginalized, and controlled is the focus. If there is a story you would like to see that follows this theme I'd be more than happy to research it.
  • It is difficult to know where to start with the factual errors and misperceptions that riddle your article. However, the following should be considered:

    1. The Cayman Islands is not a tax haven. Your references to secrecy are incorrect. The Cayman Islands has full tax transparency treaties with the United States and the European Union;

    2. Accordingly business transacted in the Cayman Islands is lawfully and properly structured and in relation to the United States, relies on lawful provisions of the IRS Code which major corporations are perfectly entitled to rely on;

    3. It is a matter for US tax policy in respect of which we do not comment, as to whether good reason exists to continue assisting US corporations in leveling the playing fields against global competitors who pay tax once only under a territorial system. However, it is wrong to criticize US corporations for relying on a current provision of United States law;

    4. Those corporations in Cayman with registered offices at Ugland House are located there to take advantage of Cayman Islands law thereby effecting the inflow of capital to the United States of trillions of dollars from the international capital markets which has prevented US financial institutions from meltdown.

    5. The Cayman Islands has been a fully cooperative jurisdiction with respect to all international initiatives on tax and all crimes transparencies for over 20 years. Refer to the General Accounting Office Report.
  • The fact this article brought out one of the sentinels of the system pleases me. Thank you for such polite rhetoric. Please consider the following in response:

    United States Department of the Treasury
    Financial Crimes Enforcement Network

    Subject: Transactions Involving The Cayman Islands
    Date: July 2000
    Advisory: Issue 14

    FinCEN Advisory

    The counter-money laundering regime embodied in the legal, supervisory, and regulatory systems of the Cayman Islands suffers from serious systemic problems.

    * Most Cayman Islands financial institutions are not required to identify their customers.
    * Cayman Islands financial institutions are not required to maintain records of customers. financial transactions or account opening documents.
    * Cayman Islands law makes it impossible for the supervisory and regulatory authority to obtain information held by financial institutions regarding their clients' identity absent a court order. Officials have no access to information relating to investment funds held by 15 or fewer persons.
    * Failure of financial institutions in the Cayman Islands to report suspicious transactions is not subject to penalty; instead, a nonreporting institution is unable to invoke a 'reporting defense' if the institution is itself accused of money laundering.
    * Despite its significance as an international financial center, Cayman Islands law bars its supervisory and regulatory authority from collecting for, and sharing with, its counterparts records of financial transactions and customer identification (to the extent that such documents are maintained by Cayman Islands financial institutions).

    Other weaknesses in the counter-money laundering programs of the Cayman Islands result from the interaction of particular rules in a way that can vitiate formal counter-money laundering requirements.

    * The Cayman Islands remains committed to strict bank secrecy, outside of a limited suspicious transaction reporting and international cooperation regime.
    * The over 7,000 'exempted' companies registered in the Cayman Islands may issue bearer shares.

  • Dutch
    Apparently the President of the U.S. doesn't agree with you as Obama is working on a massive crack down on these types of tax loopholes.
  • garo
    Brilliant. Thanks.
  • Great report - thanks a lot for sharing this.