Halliburtonomics (Waxman likely to hold hearings on Dubai Move)

[maddezmom]

Halliburtonomics
Posted by Karen Tumulty | Comments (31) | Permalink | Trackbacks (0) | Email This
Is this about tax breaks? Getting beyond the reach of congressional subpoenas? And what about all that sensitive information that Halliburton has had access to? At a minimum, reincorporating in Dubai would mean that Halliburton will be paying less taxes to the U.S. Treasury, even as it collects billions from government contracts.

The last paragraph of the FT story begins to answer the questions about Halliburton's, uh, interestingly timed decision to move its corporate headquarters:

Dubai has long positioned itself as a regional business hub, with a laisser faire attitude to business regulations. The government has launched several free zones allowing foreign firms to circumvent laws barring foreigners owning businesses.
UPDATE: Henry Waxman is likely to hold a hearing on this, an aide tells me.

UPDATE UPDATE: Flounder's comment made me wonder precisely where Halliburton is incorporated now. According to this 2004 GAO report( http://levin.senate.gov/newsroom/supporting/2004/030404taxhavenGAOreport.pdf ), the company is incorporated in Delaware, but has (or had at that time) 17 subsidiaries in tax-haven countries. Halliburton says it will remain incorporated in the United States.

more: http://time-blog.com/swampland/2007/03/halliburtonomics.html

~snip~

Through its KBR subsidiary, Halliburton also is the Pentagon's largest private contractor operating in Iraq. Under a logistics contract with the Army valued at more than $25 billion, KBR serves up meals, builds bases and provides other support services for U.S. troops.

While Halliburton is splitting off its KBR operation into a separate entity, Lesar's relocation prompted questions among policymakers in Washington.

"This is a surprising development," House Oversight and Government Reform Committee Chairman Henry Waxman, D-Calif., said in a statement Sunday. "I want to understand the ramifications for the U.S. taxpayer and national security."

Waxman's panel is expected to hold a hearing on the decision.

more:http://www.chron.com/disp/story.mpl/business/4621008.html

[lligrd]

1. Can't We Just Let Them Go And Cut Their Ties To US

Where does it say Corporations can have dual citizenship? At any rate, if they are a Dubai corporation they shouldn't hold any government contracts here for security reasons. Of course, they are taking billions of our money with them.

[ShortnFiery]

2. Oh Henry!

May God Bless You! :hug: :patriot:

[nitpicker]

3. I would not be surprised if Cheney followed.

So that then he could be paid "deferred compensation", perhaps via a Swiss bank account.