Transocean, Ltd, the company that operates the Deepwater Horizon oil rig which recently exploded in the Gulf, is the “world’s biggest offshore drilling contractor.”
We’ve already seen that the Deepwater Horizon drill rig used the Marshall Islands’ flag as a “flag of convenience” so it “could comply with that country’s standards, and not the U.S. regulations” (see “Oil well’s blowout preventer had leaks, dead battery, design flaws“).
Now the AP reports today that Transocean, after moving its headquarters from the U.S. to Zug, Switzerland, two years ago, paid a paltry 16 percent on its corporate income last year, less than half of the current American corporate income tax rate of 35 percent:
In the foothills of the Swiss Alps four new steel-gray towers rise from what used to be a grassy field. One of them is home to Transocean Ltd., the world’s biggest offshore drilling contractor and owner of the Deepwater Horizon rig that exploded in the Gulf of Mexico, leading to one of the worst oil spills in history.
Low taxes prompted the decision two years ago to move to landlocked Switzerland: The company paid 16 percent tax on its $4.4 billion global operating income last year. The regular corporate income tax in the United States stands at about 35 percent.
The company, once based in Delaware, shifted its head office from the Cayman Islands, where it has been since 1999, to the central Swiss canton (state) of Zug. It joined other international corporations flocking there in search of tax advantages.
Only a dozen of Transocean’s employees are physically located in Zug “” more than 1,300 are based in Houston, Texas. A “2005 survey by research firm BAKBASEL found Zug had the lowest effective tax burden for companies and high earners of any Swiss canton, and far below that of other European countries or the United States.” Transocean is holding its shareholder meeting in Zug today, angering some residents. “We want them to stop deepwater drilling and to clean up the damage they caused in the Gulf of Mexico,” said Rupan Sivaganesan, a Green Party member of the cantonal parliament.
This was a TP repost.
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I propose that the fact that there are 3 international corporations involved in the Gulf oil disaster is itself a part of the strategy to avoid responsibility for the damage. One would expect that a huge global oil corporation (BP) could easily own all the equipment and technology necessary to carry out their business. In this case, having 3 players finding ways to blame each other almost guarantees that it will take decades for a final legal settlement and payment for damages or whatever.
These companies are not American companies and they should not be treated as such. They do not support American interests (exporting gulf oil while seeking approval by indicating domestic need, etc). They do not pay there fair share of running our government and programs while receiving greatly increased benefit from the government as corporate persons than normal breathing persons get. They manipulate our political system to advantage. They represent a nobile aristocratic class, above the law.
Looks like Maurice Strong, Gorge Suross, also made smart moves. They moved to avoid exposurefinancial trouble. Transocean does next to zero business onshore America, and pays taxes anyhow. Even rock stars move to benefit from different taxation. America will have to consider heavy taxation moves jobs to China and headqquarters to countries that welcome corporations.
[JR: Uhh, that's the best you can do? Transocean's recklessness and apparent incompetence has caused incalculable damage to our Coast. Where exactly is the comparison?]
Rock stars dont cause catastrophic environmental damage.
I recall reading that US taxpayers subsidize these rip-off artists to the tune of multi-millions a year as well.
Does BP get any of that?
As if the others do not have their share of trashing the environment for profit.
Does this mean that we don’t have to read them their Miranda rights when they get arrested?
To answer my own question. A 0.22 second google search, “British Petroleum, tax subsidies,” turned up 382,000 listings.
Starting off this morning: Rep Roy Blunt has received over $1,000,000 in donations from the fossil industry and has voted in their favor almost 100% of the time.
Next: BP liabilities on the “spill” are limited to $75,000,000. Taxpayers like you Donna Larson, and me get to pick up the tab for the rest. Perhaps some litigation, again tax funded, will gather more. (BY the government by the by.)
There is obviously a lot more to be gleaned here and Donna, you might find it informative to spend some time looking where your tax dollars go and who gets them.
David Smith, #1, good post, but I disagree with the wording of the last sentence. These people are gangsters, not a noble aristocratic class (though you probably meant that sarcastically). These gangsters have purchased our government, and the press, too. Time for the people to wake up.
It would be helpful if someone toted up all the corporate profits that have gone untaxed (see this post for Exxon’s share: http://climateprogress.org/2010/04/06/exxon-mobil-paid-no-federal-income-tax-in-2009/#more-22573) and then calculated how much would have been collected in just one year, say 2009, had large corporations been properly taxed, and then looked at what could have been done with all that money owed to US taxpayers. Just imagine what could have been done to make peoples’ lives better. But heck no, we’re not only screwed out of what they owe us, we get to pay their cleanup bill. Alaska’s Lisa Murkowski is seeing to that.
Mike Roddy #7 – Maybe,… In my somewhat educated opinion, the founders and the constitution supported a vision of a republic with no aristocracy, no noble class…of the people, by the people. The intension was to leave the old aristocratic ways in Europe. No one, even the president is above the law. To me, aristocracy is the antithesis of American democracy. Criminals do illegal things for personal gain. Aristocrats are a part of an antiquated form of government. In this case, Laws are passed. Big corporations try to write the laws in their favor. When not successful, oil companies make deals with our democraticaly elected officials so that the laws dont apply to them. The results impact everyone, possibly in very negative global changing ways. This is much worse than gangsterism (which is childsplay by comparison).
I doubt that Donna Larson will be back to read reactions to her complaint about “Gorge Suross” (George Soros.) But if she does come back, she should take the time to read one of the books by Barbara Ehrenreich. Another good choice would be Perfectly Legal, a 2003 book by Pulitzer Prize-winning journalist David Cay Johnston.
Rock stars don’t cause catastrophic environmental damage.
Some people (not me) might disagree with that statement ;)
(If you consider sound part of your environment)