Business

Google Dodges Taxes; Obama Headlines Fundraiser

According to the latest news reports, internet giant Google Inc. has successfully shifted around its income to avoid America’s steep 35 percent corporate tax rate. As a result, the company has saved itself an astonishing $3.1 billion:

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’s income shifting — involving strategies known to lawyers as the “Double Irish” and the “Dutch Sandwich” — 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.

“I want to see our companies remain the most competitive in the world. But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens,” Obama said in a White House announcement in May.

But the international corporation‘s history of tax avoidance isn’t enough to keep the president away from their fundraising ability during a contentious election season.  The president was in California today for two Democratic Party fundraisers, one of which was held at the personal Palo Alto residence of Marissa Mayer, a vice president at Google.  The in-house fundraiser charged $30,000-per-person to support 50 Democratic candidates.

Comments (62)

1 2
  • Atrocities
    Posted on October 22, 2010 at 4:01am

    Oh my God, another liberal loving, DNC supporting, social fascist company avoids paying their taxes. No surprise there.

    Report Post » Atrocities  
  • bullcrapbuster
    Posted on October 21, 2010 at 10:23pm

    Nothing wrong with keepin the business strong thriough less taxes. This is the result of high taxes and high tax expectations. Russia lowered their personal tax from 20 to 80% range down to a flat 13% and revenue went through the roof. If you are employed by a company you do not even have to file taxes. Your employer just deducts 13% and sends it in,end of story. I worked there for a few years and never filed a return after the 13% rule went into play.

    Report Post » bullcrapbuster  
  • idrathermisstotheright
    Posted on October 21, 2010 at 10:22pm

    Try http://www.scroogle.org less ad dollars for google. Don’t use .com it is a porn site

    Wonder if those WalMart haters use google?

    Report Post » idrathermisstotheright  
  • idrathermisstotheright
    Posted on October 21, 2010 at 10:19pm

    Try http://www.scroogle.org

    It is a google scraper. Don’t use .com it is a porn site.

    I wonder if all of those Wal Mart haters who protest them with hate and
    vengeance use google?

    Report Post » idrathermisstotheright  
  • JohnnyJT
    Posted on October 21, 2010 at 9:37pm

    Google is up high on the Obama’s Exempt List.

    Report Post » South Philly Boy  
  • BRAVEHEART
    Posted on October 21, 2010 at 9:03pm

    The Super-Liars know all the lies, all the tricks and all the scams. The goal is to be the best liar, cheater and scammer and be the World champion Super Liar-Cheater. It would be hard to top the United States congress, the President, or the super-elite on Wall Street,

    Report Post »  
  • M-O-O-N Spells Moon
    Posted on October 21, 2010 at 8:10pm

    Isn’t it fascinating that a company that is so closely tied to the Administration can get away with things like this? And of course, they won’t be demonized like Wall Street… yet.

    Report Post » M-O-O-N Spells Moon  
  • patriotteapress
    Posted on October 21, 2010 at 8:10pm

    I flushed my computer of Google Chrome and SE links just yesterday just because of the privacy issues. They have become too cozy with this administration and appear to be positioning themselves to aid Obama in striking out at those of us speaking out against him. Google is also positioned to track us, then report to the Gooberment about our associations and our where abouts.

    No one can blame them for reducing their taxes via this method. They are just following the good liberal, John Kerry “yach model.”

    Report Post »  
  • NHABE64
    Posted on October 21, 2010 at 8:10pm

    Add your comments

    Report Post »  
  • sdparker
    Posted on October 21, 2010 at 8:01pm

    The democrats in congress do the same thing with their property. Many ‘elite’ hide and swindle their income and property around to avoid paying. They don’t mind raising taxes on people especially when they find ways of skirting out of it. No accountability of course.

    Report Post »  
  • wash1776
    Posted on October 21, 2010 at 7:30pm

    What would you expect out of the most crooked so-called president (big joke) in history? This guy is SICK,SICK,SICK!!!!!!!!!!!!

    Report Post »  
  • wash1776
    Posted on October 21, 2010 at 7:27pm

    ALL google stuff will go off of my computer. They are a bunch of CRIMINALS!!!!!!!!

    Report Post »  
  • iamhungry
    Posted on October 21, 2010 at 7:17pm

    Did anyone not realise that companies reduce their taxes by moving their money through other countries? Only the very naive think that they don’t. If you believe in free markets with no government intervention then you shouldn’t have any problem with this. Its not illegal. The company was acting to maximise it’s profits. What is wrong with that?

    If you support closing this tax loophole then you are anti-business.

    Report Post »  
  • Okpulot Taha
    Posted on October 21, 2010 at 7:00pm

    Google’s first responsibility is to its shareholders. This is free market capitalism at its best.

    Lots of people made fortunes buying stock in Google during the Initial Public Offering of Google stock at $85 per share. Google today traded for $612 per share. Reason Google is doing so well is simply Google uses a good business model: Keep costs down, maximize profits. Part of this business model is minimizing taxes.

    I have no problem with Google minimizing its taxes, this is an excellent business practice which benefits many from providing jobs to stock profits.

    Okpulot Taha
    Choctaw Nation

    Report Post »  
    • Silversmith
      Posted on October 21, 2010 at 7:26pm

      While I have no problem with running a lean business model, I have also seen a great many stories regarding partnerships with Google and the government. I have a growing concern that privacy has already become a thing of the past.

      Silversmith

      Report Post » Silversmith  
  • booger71
    Posted on October 21, 2010 at 6:56pm

    That’s why the 16th Amendment needs to be repealed,a and the Fair Tax be implemented now!

    Report Post » booger71  
  • Dodgersfan16
    Posted on October 21, 2010 at 6:54pm

    I bet this wouldnt happen if we had a tax system that made sense.

    Report Post »  
  • nomorecrap
    Posted on October 21, 2010 at 6:49pm

    And our elected officials and POTUS in Washington know this and yet don’t care as long as they get their cut. What a shame. We have become slaves and sheep to the government. I say get the FairTax bill on the table and passed, it’s the only way things have a chance to level out the economy and create businesses and jobs in the US. Unfortunately it will never happen, at least in my lifetime.

    Report Post »  
  • abc
    Posted on October 21, 2010 at 6:48pm

    So Google is known as a staunchly Democratic firm in Washington, D.C., so it doesn’t surprise me that they would be singled out. The Koch brothers’ enterprises play the same games, but you’ll NEVER see them criticized by Beck, I promise you.

    Every US corporation shifts income around to minimize taxes, which is why they almost never pay the full 35% rate. That rate is now the highest in the world, but US corporations’ share of total tax receipts (as a % of GDP) is actually below the average of OECD countries. How can this be? Simple. They are using the very same loopholes that Beck is highlighting in the case of Google. Warren Buffett, who knows more about this stuff than anyone who will ever write on this site ever (including Beck), has repeatedly noted in his annual letters that this game is being played, so we should take with a grain of salt companies’ calls to lower the official tax rate until the loop holes are closed. This article was written just to undermine a company’s reputation, since they don’t give to the GOP. Follow the money and you’ll understand that Beck is not interested in principles, but just in helping the people who pay him for his partisanship. Google doesn‘t do anything Halliburton doesn’t do, and the latter company (Cheney’s old one) pays lower effective tax rates than Google. But you won’t see Beck making that point any time soon.

    Report Post »  
  • Jack
    Posted on October 21, 2010 at 6:45pm

    They are just doing their job: That is to make more profits, not pay taxes. Imagine a world where companies just try to make money and charities feed the deadbeats.

    Report Post »  
  • Flagwaver
    Posted on October 21, 2010 at 6:37pm

    I’m sorry to say it, but this is actual good. I’m not saying it is legal, but it is keeping $3.1B from the spend-hungry government.

    Report Post » Flagwaver  
  • poverty.sucks
    Posted on October 21, 2010 at 6:31pm

    Wherefore the Wealthy continues to be Wealthier!

    Report Post » poverty.sucks  
  • Psychosis
    Posted on October 21, 2010 at 6:26pm

    companies avoiding taxes for the sake of avoiding taxes are reprehensible……… that stated, if the government wasnt always raping them with high taxes, and concocting regulations that helped some at the expense of others, companies would be more willing to open up shop here, instead of going over seas where taxes are moderately more fair, and regulation is minimal and even across the board……….politicians are always writing new regulations on the behest of lobbyists and campaign contributors favoring them at the expense of their competition, or in favor of unions, who fund their campaigns………….AND THEN COMPLAIN THAT COMPANIES ARE LEAVING……… well i have a response…………QUIT FORCING THEM TO LEAVE.

    Report Post » Psychosis  
    • abc
      Posted on October 21, 2010 at 6:49pm

      The effective tax rate of US companies is well below the OECD average. You have no idea what you are talking about, as usual.

      Report Post »  
    • Rogue
      Posted on October 21, 2010 at 7:10pm

      ABC – speaking of not knowing what you are talking about, you have outdone yourself yet again. The US is below the OECD average in terms of tax rate BASED ON GDP.

      When you look at flat overall percentage, the OECD average is 19.5%. The US comes in at the highest effective corporate tax rate of all OECD nations, at 35%.

      Report Post » Rogue  
    • Psychosis
      Posted on October 21, 2010 at 7:45pm

      ABC is again TALKING OUT HIS ASS , but thats normal for a lefty.after all they do spend most of their spare time smelling their fingers

      Report Post » Psychosis  
  • Iron Horseman
    Posted on October 21, 2010 at 6:23pm

    Google, teach me how. Sick of having my hard earned money going to freeloaders.

    Report Post »  
    • untameable-kate
      Posted on October 21, 2010 at 6:40pm

      Me too, I would like to order a Dutch sandwich please.

      Report Post » Untameable-kate  
    • EyebrowsLaMana
      Posted on October 21, 2010 at 7:02pm

      Same here, let those lazy fat ass freeloaders go out & make their OWN money, take care of their OWN kids, and pay their OWN doctor bills.

      Report Post » EyebrowsLaMana  
  • Will NV
    Posted on October 21, 2010 at 6:17pm

    Hope they are future jailbirds together.
    What are the chances.

    Report Post »  
  • FreedomOfSpeech
    Posted on October 21, 2010 at 6:12pm

    This is disgusting. With America in the crapper, companies should not be hiding revenues like this. I hate high taxes but come on, man. Be decent.

    Report Post » FreedomOfSpeech  
    • FreedomOfSpeech
      Posted on October 21, 2010 at 6:16pm

      Obama burns books like the Nazis.

      Report Post » FreedomOfSpeech  
    • RehabUncleSam
      Posted on October 21, 2010 at 6:29pm

      Wow, what happened to Obama’s “greedy corporate fat cat” mantra, or the “spread the wealth around” mantra? Guess he’ll be campaigning in 2012 with an extra 3.1 billion …..what a coincidence that will be!

      Report Post » RehabUncleSam  
    • snowleopard3200
      Posted on October 21, 2010 at 6:29pm

      Consider this though, Google is dodging their funds overseas and away from America – could there be some foreknowledge they have discovered instead of just wanting to avoid paying the taxes?

      Always look for the small points of the MACRO trend; the avalanch begins with only one small crack in the structure of a snowpack.

      http://www.artinphoenix.com/gallery/grimm (mix art)

      Snowleopard {gallery of cat folks}  
    • cheezwhiz
      Posted on October 21, 2010 at 6:30pm

      What does Ma’am Senator has to say about his ?
      She is running ads against Fiorina saying that Fiorina shipped HP jobs overseas.
      Now we have a WH operative and AlGore partner stealing taxes ? Like Geithner ? And Rangel ?
      Do you have any idea how many children we can feed with 3.1 Bil ?

      Report Post » cheezwhiz  
    • untameable-kate
      Posted on October 21, 2010 at 6:45pm

      34% is too much. Lower taxes and companies wouldn’t need to dodge them nor would they be compelled to move thier companies overseas.

      Report Post » Untameable-kate  
    • NoName22
      Posted on October 21, 2010 at 7:25pm

      Nothing wrong with it. Maybe this is why we should EXTEND the Bush Tax cuts. But Obummer would never say that. That’s called good business. FREE Market.

      @Cheezwhizz

      You know how many Afghan, Iraqi, Pakistani, Haitian, American, and African children we could feed if we weren’t invading multiple countries????? The terror threat would be cut in half if we sent food to these countries instead of armed soldiers. Our government pays farmers to burn crops to keep food prices high.

      Report Post »  
    • VegasGuy
      Posted on October 21, 2010 at 7:26pm

      Why is ANYONE surprised that a company that promotes leftist agendas would use a tax dodge? After all, leftist love OTHER PEOPLE’S TAXES.

      Report Post » VegasGuy  
    • 82dAirborne
      Posted on October 21, 2010 at 7:47pm

      @NONAME22

      They would steal the foodstuffs and make sure the radicals are well fed. We already send much, much, much more food and aid than anyone else on earth. If you would like to send some of your own money…. go right ahead. It should be your choice. Just as I should have the choice of what to do with mine. I would prefer mine spent on sniper weapons to kill the people who want to kill us. Just saying…………

      Report Post » 82dAirborne  
    • pajamash
      Posted on October 21, 2010 at 7:59pm

      “But the international corporation‘s history of tax avoidance isn’t enough to keep the president away from their fundraising ability during a contentious election season. The president was in California today for two Democratic Party fundraisers, one of which was held at the personal Palo Alto residence of Marissa Mayer, a vice president at Google. The in-house fundraiser charged $30,000-per-person to support 50 Democratic candidates.”

      = HYPOCRISY

      Report Post »  
    • Ellie
      Posted on October 21, 2010 at 8:19pm

      Just one more reason that we should have a flat 10% corporate and personal tax system. One that is too simple to have any means of avoiding paying it plus at a mere 10% it won’t be worth the hassle of making the “sandwich”.

      All that work got their taxes from 35% to 2.4% so the question is did saving that 31.6% cost them more then 7.6%? The difference between what they paid with loopholes and what a flat rate would have brought in.

      Click on my name for some cool new anti-progressivism designs.

      Report Post » Ellie  
    • snowleopard3200
      Posted on October 21, 2010 at 9:49pm

      @Ellie.

      Designs are cute.

      Long live the free market.

      Report Post » Snowleopard {gallery of cat folks}  
    • awakeandalive2
      Posted on October 22, 2010 at 2:15am

      I have absolutely no problem with this despite the fact that I never use google, but that’s another topic.The US gov’t drove many companies to do the same thing with their high taxes and regulations so they found a way around it, legally.

      This is why the wealthy are getting wealthier and the poor are staying right where they are. Information and the drive to find a better way. I would rather pay a tax lawyer 100k to figure out how not to pay 100k in taxes to the gov’t. It would also create a job :-)

      Report Post »  
    • faktchekr
      Posted on October 22, 2010 at 7:49am

      Companies must look out for their stock holders, employees and future first. Anyone would do what they do to hide the money they EARNED from the governments’ greedy claws. What‘s so irritating is that Google gives money to the very politicians responsible for the high taxation that the big company has the resources to run away from unlike the small businesses and individuals that don’t have the resources to run…freakin hypocrits.

      Report Post » faktchekr  
1 2

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love