The power of the lobbyists!

One of the ways multinationals make money is by taking advantage of tax dodges. Congress passed a law that allows a company to classify a subsidiary one way in the US and another way in a foreign country. If the US government tries to tax the subsidiary, the multinational claims it is a foreign company. If the foreign country tries to tax the subsidiary, the multinational claims it is a US company. No taxes are paid to either country. Congress passed this idiotic law in 1996 and then declined to fix the error in 1998. Ain't lobbyists great!

This information was taken from p62-63 of Lou Dobbs' "Exporting America".

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