June 2, 2009

US Corporations Have No National Loyalty

As GM goes, so goes the nation.

Some are saying that was conventional wisdom in the 1960s... or maybe it's still true. It is no longer the fringe liberals and right wing nationalists who are saying things like:

GM is the number two foreign automaker in China behind Volkswagen, and GM’s plans for the future are dependent on success in China and not in the good old USA!

The reality is that so-called "US Corporations" have little or no loyalty to the US, except to the degree they can use the power of the government to their advantage... United Fruit Corporation liked having US military power support dictatorships in Central America so they could exploit workers and the environment without the unpredictability of democratic elections and the sovereign laws that follow.

Corporations are chartered to make a profit, and those with share holders have a fiduciary responsibility to make a profit; corporations can be sued by their share holders for bring do-gooders at the expense of profit. Corporations, apart from the people that run them, are designed to be profit-sharks... so, National loyalty, like paying their fair share of the National tax burden, is fundamentally counter to their charter... unless they are forced to do otherwise.

In stating his support for the "Stop Tax Haven Abuse Act", Senator Carl Levin siad,

“tax havens are engaged in economic warfare against the United States, and honest, hardworking Americans”

Obama and Geithner support the legislation, which makes me a little suspicious that it has been given a seal of approval by the corporate establishment. I don't claim expertise on the bill, but its good the issue is getting attention.

The "Stop Tax Haven Abuse Act" is a refinement of a bill introduced during the last Congress. According to Tax Justice USA, "The bill has been strengthened with the addition of three new provisions that would: (1) treat foreign corporations managed and controlled in the United States as domestic corporations for income tax purposes; (2) close an offshore tax dividend loophole that enables non-U.S persons to dodge payment of U.S. taxes on U.S. stock dividends; and (3) expand the tax return reporting requirements for passive foreign investment corporations (PFICs) to include U.S. persons who don’t own a PFIC, but have formed, sent assets to, received assets from, or benefitted from a PFIC."

For more, check out Tax Justice USA's website. If you like the legislation, contact your representatives in Washington.

  • Contact the US Senate
  • Contact the House of Representatives

  • Sources:

    Tax Justice USA's website.



    libhom said...

    That is excellent legislation. In the long term, the way we charter corporations must be changed. Originally, limited liability was given in exchange for public benefit, often public works.

    The notion of public benefit being put into corporate charters is long overdue.

    GDAEman said...

    Libhom, You rock. This subject of corporate power and their role in society deserves much more air play. I encourage you on that front and will try to do the same.