Leahy On Halliburton Move: ‘This Is An Insult To The U.S. Soldiers And Taxpayers’

[babylonsister]

http://thinkprogress.org/2007/03/12/leahy-halliburton/

Leahy On Halliburton Move: ‘This Is An Insult To The U.S. Soldiers And Taxpayers’

Yesterday, Halliburton announced that it would be moving its corporate headquarters from Houston to Dubai. Reincorporating in Dubai would mean that Halliburton — which earned $2.3 billion in profits last year — “will be paying less taxes to the U.S. Treasury, even as it collects billions from government contracts.”

House Government Oversight Chairman Henry Waxman (D-CA) said he will soon hold a hearing on the matter to “understand the ramifications for the U.S. taxpayer and national security.” One lobbyist said, “If there’s a huge tax shift, then it’s taking money from U.S. taxpayers while they’re taking no-bid contracts.”

Reacting to Halliburton’s announcement, Senate Judiciary Committee Chairman Patrick Leahy (D-VT) told ABC News it was “an insult to the U.S. soldiers and taxpayers.” Watch ABC’s segment at link:

Transcript:

ABC: A swift and angry reaction from Democrats in Washington to the announcement that Halliburton is moving its corporate headquarters overseas to Dubai. Critics say Halliburton, which has received billions of American taxpayer dollars for its work on the war in Iraq, is now looking for a tax break. ABC’s Sonya Crawford, is on the story.

CRAWFORD: Without much fanfare, Halliburton announced it’s moving its corporate headquarters from Houston to Dubai in the United Arab Emirates. CEO David Lesar, said, “Growing our business here will bring more balance to Halliburton’s portfolio.” More balance, and thanks to a friendly tax environment, hopefully more profits. Last year, Halliburton earned $2.3 billion in profits. Senator Patrick Leahy called the company’s move corporate greed at its worst. “This is an insult to the U.S. soldiers and taxpayers. At the same time they’ll be avoiding U.S. taxes, I’m sure they won’t stop insisting on taking their profits in cold, hard, U.S. cash.”

WAXMAN: Our job is to provide oversight to make sure government is working effectively.

CRAWFORD: Democrats have been extremely critical of Halliburton, once headed by Vice President Cheney. The company has received contracts valued at an estimated $25.7 billion for its work in Iraq. Among the company’s low points, serving troops spoiled food. Exposing troops to contaminated water from the Euphrates river. And failing to adequately protect its contractors. And last month, the Inspector General for Iraq found Halliburton overcharged the government, $2.7 billion. Which Halliburton is still contesting.

[Gatchaman]

1. What's the extradition treaty like

between the US and the UAE?

[Warpy]

3. It doesn't exist

QED...

[Buzz Clik]

2. Won't that make Halliburton an Arab company?

Won't it be housed in a land with a history of financing terrorism?

Sounds like it's time for the US to cut all contracts with Halliburton for all functions in which national security could be compromised.

[razors edge]

4. And

freeze all assets. :evilgrin:

[Buzz Clik]

6. oooooh! Me LIKEY!

[bigtree]

5. safe haven

[youngdem]

7. Cut ALL ties and quickly pass a law protecting documents/secrets, etc.

Tax the everliving shit out of them on the way out, and refuse to issue passports to those executives who have not properly been deposed before Congress regarding questions about contracts.

Then, pass a law voiding all contracts regarding US military efforts or issues involving security issues between the government and foreign companies.

I am glad to be done with them, personally, but we should skin em on the way out.

[bbinacan]

8. I need help understanding

this move. They will still be incorporated in the US, so how will the fact that the CEO moves his office to Dubai help them avoid taxes? Thanks in advance.

[babylonsister]

9. The text of the OP says they will be "reincorporating" in Dubai. nt

[bbinacan]

11. Yes I realize that but

are they going to reincorporate there or is this speculation?

[opihimoimoi]

10. If a citizen earns money outside the USA...no Fed Taxes...

[bbinacan]

13. Yes, but what about a company

incorporated in the US as opposed to an individual?

[grannylib]

15. I just heard on the news that it's three-fold: company avoids taxes;

company is strategically located to profit hugely off more regional wars (which it's pushing); and it will be damn near impossible to prosecute the sons of bitches for the ginormous cost overruns, fraud, theft, corruption, etc. that have been part and parcel of Halliburton from the word "go."

[The Backlash Cometh]

17. How can it profit from future wars, if we suddenly stop giving them

contracts?

[peacetheonlyway]

12. Don't Get Mad, Leahy, Get Even

have you heard of "FREEZE THEIR FRIGGIN ASSETS"

why don't you just finally declare Halliburton a enemy combatant and freeze their financial assets.

we have so much more power than we are exercising, it's exhausting to count the ways that dems
COMPLAIN but do nothing about White House and corporate abuses..

[grannylib]

14. Any business that wants to avoid paying American taxes can just

take a hike when it comes to being paid with American dollars, as far as I'm concerned.
These corporations buy votes and influence and favorable conditions for their greed, then scab out of supporting the very system they milked in order to build their obscene power structure.

[EVDebs]

16. Uooo Uooo, take the money and run -- Steve Miller Band tribute to Halliburton, Enron, etc.