It appears tech giant Google has been using an application, or to be more exact, a tax scheme to shelter billions of dollars known as the “Dutch Sandwich”.
According to recently published reports, regulatory filings from the Netherlands show Google shielded over $19 billion dollars in 2016 using the popular business-friendly maneuver.
Just in case you think that might be obscene, it’s estimated Google will receive an additional $12 billion tax break from the recent tax reform bill. Google and other big corporations should publicly extend thanks to President Trump.
Exactly what are the ingredients for a Dutch Sandwich you ask?
It’s simple. Well, actually it’s not, unless you are a savvy corporate tax attorney.
You take revenue from your Irish subsidiary, move it to a Dutch firm and then quickly move those funds to a Bermuda address owned by another company with a listed address in Ireland.
Easy as “pi”. Right?
Bottom line is companies don’t pay taxes, consumers do.
A big concern for the public consumer is how mega companies like Google will leverage the revenue obtained from these massive tax breaks. For example, Democrats accepting funds from Google on behalf of D.C. lobbyists are the same politicians telling us that the rich should pay their fair share and other virtuous empty quotes. They are also the people yelling out slogans such as “big business isn’t too big to fail”.
Are we sure about that? $19 billion dollars can make any company feel pretty confident when dealing with Washington D.C. lawmakers.
As it is, most big tech companies already enjoy a tax rate less than 20%. Does anyone think they will stop hiding money and all of a sudden bring it back to the United States? How about using the money to create more jobs and raise wages.? I doubt it.
Pretty soon there will be only a handful of mega-corporations controlling just about everything we consume.
You don’t have to take my word for it. Just Google it or ask Alexa. Don’t be surprised if you get the same response from Amazon Echo.
Google stated that it pays all of the taxes due and complies with the tax laws in every country they operate in around the world. To be fair, Google are not alone when it comes to hiding big money. Companies using similar tax loop holes include Facebook and Apple.
As it stands now, lobbyists acting on behalf of big-tech companies have rigged our laws, so the average Joe is forced to pay taxes at a rate they can’t afford, while companies like Facebook and Google can turn a huge profit and barely pay a dime.