Obama’s Google Supporters Moved 80% of Pre-Tax Profits into Bermuda Shell Company

Google was the third largest source of Obama’s campaign cash. A number of Google executives took jobs within Obama Inc and Google’s PAC has plowed large amounts of money into the Democratic Party.

Google’s creepy ex-CEO Eric Schmidt was a major Obama donor and campaign advisor, and was even considered for a Cabinet post. Schmidt was on Obama’s transition board and is a member of his Council of Advisors on Science and Technology.

So naturally when Obama talks about making the rich pay, he doesn’t mean his friends at Google who moved 80 percent of their pre-tax profits into a shell company in Bermuda.

Google Inc. (GOOG) avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenues into a Bermuda shell company, almost double the total from three years before, filings show.

By legally funneling profits from overseas subsidiaries into Bermuda, which doesn’t have a corporate income tax, Google cut its overall tax rate almost in half. The amount moved to Bermuda is equivalent to about 80 percent of Google’s total pretax profit in 2011.

The Internet search giant has avoided billions of dollars in income taxes around the world using a pair of tax shelter strategies known as the Double Irish and Dutch Sandwich, Bloomberg News reported in 2010. The tactics, permitted under tax law in the U.S. and elsewhere, move royalty payments from subsidiaries in Ireland and the Netherlands to a Bermuda unit headquartered in a local law firm.

Last year, Google reported a tax rate of just 3.2 percent on the profit it said was earned overseas, even as most of its foreign sales were in European countries with corporate income tax rates ranging from 26 percent to 34 percent.

I am all for making the rich pay more. The rich liberal statists who spend money lobbying for more spending and higher taxes while refusing to pay for the policies that they want.

Microsoft, Amazon and Google paid for this election. They should begin paying for this election.

  • Mary Sue

    Yeah for some reason only the evil Republican Rich should be paying, in their minds.

  • http://twitter.com/Kenrick66 @Kenrick66

    You can bet your inflated bottom dollar that every liberal statist organization, and every liberal statist individual, and every Democratic politician who's for "soaking the rich," have similar arrangements that will insulate them from the confiscatory consequences of their tax-and-spend- and-tax-some-more policies.

  • Sands

    Its all fake.
    Obama gave Warren a medal and he owes for every year startling in ’02!
    The purpose is to be able to spend more not collect more.
    Then print and have the Middle class eat the debt.

  • JacksonPearson

    Google's off shore treasurers are the tip of a much larger iceberg. Question should really be, where's Obama stashing his booty? (Hint) The Obama's just purchased a 35 million dollar mansion in Hawaii. "Dreams From My Father" must have paid him big dividends!

  • Tony R.

    Microsoft, Amazon and Google are all corporations. Corporations don't pay taxes — they just pass the cost of taxes through to their customers in the form of higher prices. If they can't pass those costs along and thus become uncompetitive, they either go bankrupt or decide to shut town the business and liquidate. The real solution is to reign in voracious governments and lower tax rates for businesses.

    This is basic economics stuff, Daniel. You need to get out of the class warfare mindset that Obama and today's radicalized Democrats are promoting.

    • Daniel Greenfield

      And people don't pay taxes. They just pass along those taxes in the form of reduced purchases to corporations.

      • Western Canadian

        Nice burn, dude.

    • Western Canadian

      Since corporations COLLECT taxes, as if they were going to pay them, not paying them should not be an option. And without a corrupt government, they would not be able to not pay them. Rather simple.

    • objectivefactsmatter

      "Microsoft, Amazon and Google are all corporations. Corporations don't pay taxes — they just pass the cost of taxes through to their customers in the form of higher prices. If they can't pass those costs along and thus become uncompetitive, they either go bankrupt or decide to shut town the business and liquidate. "

      Don't be so dense please. Nobody pays taxes according to you. My employer pays my taxes. Their clients pay those taxes, it's an endless loop according to your logic. So nobody pays, yet the specific policies can wreck or enable an entire nation's economy. How about that?

      Why don't you just agree to double your taxes since your employer will pay them, then you can demand a raise and so forth. Go for it smart butt.

  • Rüdiger

    Google shouldn't feel safe. When a government sees a way to get money, gratitude and friendship means nothing. They just don't have a means yet to crack the Bermuda accounts.

  • Steve

    All of the Ultra Rich that Support Obama, and feel they DON'T pay enough taxes all seem to find all of the loopholes, be it Warren Buffet who could take his income as salary and not Dividends or his Company BNSF fighting with the IRS over what is owed. The CEO of COSTCO paying dividends for 2013 in 2012 in order to avoid the taxes he wanted the Obama Administration implement. And Now, Big Time Obama Supporter GOOGLE takes money off-shore to avoid the very same taxes the Obama Administration is pushing for. This duplicity on every issue, "Do what I say, not what I do", be it Taxes, or the Celebrity Obama supporters that push for Gun Control, but have ARMED Body Guards, are the entire reason the Liberal Philosophy doesn't work, and is an absolute Blue Smoke and Mirrors trick of the Ultra-Rich trying to become Despots.

  • Sweet T

    Meanwhile has the government of Bermuda made any money off of this transfer? Bermuda Government charges a mere 15,000 for exempt companies to exist in Bermuda, which is absolutely nothing. And we wonder why the offshore company sector has been made our primary income economically. And the cahrge of 15.000 yearly for companies and their subsidiaries is ludacris! We should be pumping them for more! Bermuda is gonna wait until US government implements the laws to regain and pull this money back into their country, and we will be laid flat on our asses. Signed, a concerned Bermudian.