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Inversion Redux

July 29, 2014

Andrew Ross Sorkin, an NYTimes business writer, posted an article in today’s Dealbook section describing the huge profits banks made by advising corporations on the inversion process, whereby they declare themselves as based in another country to avoid paying US taxes. As noted in yesterday’s blog post amplifying Paul Krugman’s article, this has a major impact on publicly operated institutions like schools. To amplify that for NYTimes readers I offered the following comment:

I’m not a tax expert… but here’s my understanding:
We– the taxpayers— bailed out these “to big to fail” banks and now they are receiving huge sums of money to help large corporations avoid paying their taxes. This, in turn, creates a “crisis” in the government revenue stream that requires the privatization of things like roads, prisons, hospitals and schools to “save the taxpayers” money. Oh… and as a by-product this “crisis” gives the shareholders of those NEW private enterprises more wealth. I, for one, do not believe this is good for our country.

To paraphrase a quote from the 60s, if you aren’t disturbed by these shenanigans you are not paying attention!

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