A couple of weeks ago, The Masked Blogger posted about Obama railing against “Corporate Deserters,” referring to those companies that choose to have their official headquarters in another nation in order to avoid America’s confiscatory tax rates — a practice called “tax inversion.”
Now it turns out that a few years ago, Obama’s own administration not only allowed this, but helped a crony company set up a nice little tax inversion.
President Barack Obama says U.S. corporations that adopt foreign addresses to avoid taxes are unpatriotic. His own administration helped one $20 billion American company do just that.
As part of the bailout of the auto industry in 2009, Obama’s Treasury Department authorized spending $1.7 billion of government funds to get a bankrupt Michigan parts-maker back on its feet — as a British company. While executives continue to run Delphi Automotive Plc from a Detroit suburb, the paper headquarters in England potentially reduces the company’s U.S. tax bill by as much as $110 million a year.
Delphi is, of course, one of the main suppliers of parts to
Government General Motors, as even the NY Times admits. In fact, up till 1999, Delphi was part of GM. And we know who the big Detroit automakers and their unions support, don’t we?
But there’s nothing to see here. Just more crony capitalism from the so-called “most transparent administration in history.” The funny thing is, it’s their actions that are transparent, not their statements.