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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Ish who wrote (235541)	3/8/2002 5:52:27 PM
From: Mr. Whist	Read Replies (2) \| Respond to of 769670

Ish: Actually, I own some Stanley stuff, too, but I ain't buying anymore. Cooper Industries, recently of Houston but now of Bermuda, is a thornier problem, since they make those high-quality Crescent wrenches. I own one of those foot-long Crescent wrenches; use it all the time. I agree. Always buy American.

To: Ish who wrote (235541)	3/8/2002 5:55:31 PM
From: Mr. Whist	Read Replies (1) \| Respond to of 769670

US to review laws allowing 'tax havens' Treasury will study laws that have enabled US-based MNCs to lower taxes by incorporating overseas WASHINGTON - The United States Treasury Department said it is reviewing laws that have allowed US-based multinational companies (MNCs) such as Stanley Works and Tyco International to reduce taxes by incorporating overseas in countries such as Bermuda. The study comes as Massachusetts Representative Richard Neal and Senator John Kerry, both Democrats, are drafting legislation banning the arrangements, which were detailed last month by the New York Times (NYT). Enron, for example, paid no income taxes in four of the last five years, using almost 900 subsidiaries in tax-haven countries and other techniques, the NYT reported last month. The bankrupt energy giant had 881 subsidiaries abroad, including 692 in the Cayman Islands, 119 in the Turks and Caicos Islands, 43 in Mauritius and eight in Bermuda. Tyco saved US $400 million (S$734.4 million) last year by becoming a Bermuda company on paper while continuing to operate in the US, the newspaper said. 'We are seeing a marked increase in the frequency of the transaction announcements and an increase in the size of transactions,' said Mr Mark Weinberger, Treasury's assistant-secretary for tax policy. Other companies that have completed the transaction include telecommunications company Global Crossing, oil well services company Nabors Industries and industrial equipment manufacturer Cooper Industries, the NYT reported. Companies can essentially designate a mailbox in a foreign country as their corporate address, and are under no obligation to set up an office there. Bermuda, in particular, has become an attractive destination for such re-incorporations. The Treasury will also study whether US tax laws are competitive with those of foreign countries, Mr Weinberger said. The US pulled out of an Organisation for Economic Cooperation and Development crackdown on low-tax havens earlier this year, citing countries' rights to craft their own tax laws. The US is one of the few countries in the world that tax their citizens on their global income. Other countries tax their citizens only on income earned within their borders. Corporations pay no income tax in Bermuda. Mr Neal said the Bush administration's study delays action to halt abuses. 'They are trying to sweep this under the rug by issuing another 'study',' he said in a statement. 'We need a strong legislative response to those who slap 'Made in the USA' on their products, but don't want USA on their corporate addresses.' --Bloomberg News, Reuters 3/2/02