Offshore Tax Shelters?
Tuesday, February 24th, 2004During the last presidential campaign John Kerry scored populist points castigating “greedy corporations” who avoided paying their “fare share” of taxes by “sheltering” their profits in foreign countries. In an era of corporate downsizing and record budget deficits that topic resonated with many people, and the charges were repeated widely before disappearing under the weight of other criticism more easily tied directly to George Bush. But before they disappeared The Boston Globe ran a piece by Stephen Glain on the topic in their business section. I sincerely believe there is a lot of questionable – or downright dishonest – stuff going on behind the corporate veil in support of avoiding taxes. But I also believe that a business reporter should consider the possibility that some practices characterized by populist politicians as malfeasance may actually have a rational and legitimate basis in business principles – and that a reporter writing a story on the topic should at least talk to some people in business who are using those practices before writing the story about them.