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Stanley
Works wants to work less in Bermuda....
... In a Move to Save an Estimated US$30 Million in Taxes the maker of Famous Stanley Tools wants Out of the US, but some People are Not pleased.. |
| IN
THE NEWS:
. Stanley Works, the makers of famous Stanley tools (hammers, screwdrivers, etc., etc.) decides to expatriate the entire company to Bermuda (at least on paper anyway) in a move to save the company an estimated US$30 Million Dollars in annual taxes. The following two news articles as reported by Neil Cavuto of Fox News: . . Thursday May 9, 2002 - NEW BRITAIN, Conn. A plan to move the legal residence of toolmaker Stanley Works to Bermuda was approved by shareholders Thursday amid criticism of corporate tax havens. A congressman likened the move to the actions of Connecticut-born traitor Benedict Arnold. Stanley said 67.2 percent of all shares favored the move, slightly more than the two-thirds majority needed. . . http://www.foxnews.com/story/0,2933,52351,00.html . HOWEVER, Not everyone is happy with the idea (Neil Cavuto also writes): . Friday May 10, 2002 - Stanley Works wants to move to Bermuda. Fed up with spiraling taxes, the Connecticut toolmaker says it's had enough. And a lot of people are coming down hard on old Stanley, including Connecticut's attorney general, who got the company to hold off for now, pending a legal challenge. He's mad at old Stanley. But I'm not. The company's right. Taxes are high Apparently about $30 million too high for Stanley. That's what it figures to save for getting out. Shareholders approved that move by a landslide - And why not? . If the company stayed here, it could very likely go out of business And all because it's being taxed to death. It might sound unpatriotic, but it will keep the company in business, keep most of its workers working and keep them working here. So let's stop politicizing this move and start understanding it. Bermuda doesn't tax businesses on income earned abroad. We do. That doesn't mean Stanley stops paying taxes here for the money it makes here. It just stops paying taxes here for the money it doesn't make here (outside of the USA). . The greater issue isn't whether Stanley is a modern day business Benedict Arnold. Let's leave that discussion for someone else. . Leave this discussion for me. Taxes period are crazy. When they get so large, so complicated and so all-consuming that you can't run a business, then who can blame you for moving that business? I hope someone takes note. Because contrary to liberal broadsides, companies do pay a lot in taxes on average more than 40 cents on every dollar they make. And their workers pay taxes too wouldn't you know, on average, 35 to 40 cents on every dollar they make. Can you say overkill? Not Washington, which is more eager to jump on the traitorous Stanley than their pillaging selves. The problem, my friends, isn't Stanley walking, it is Washington stealing and trying to vilify those who have the gall to say, enough. . http://www.foxnews.com/story/0,2933,52474,00.html . EDITORS NOTE: I am reminded of a line spoken by the character of Michael Corleone in the last Godfather Movie (in relation to moves by the Connecticut State Attorney General to Stop the relocation to Bermuda). In his comments about trying to divest himself from the Mafia, Michael Corleone says, - Just when I thought I was getting out, they pull me right back in again. . Stanley is getting quite a bit of heat and attention because it happens to be a very large publicly traded company. Too bad for the Connecticut State Attorney General in that he does not even have a clue as to the number or private citizens and small businesses that have already left, unnoticed and without fanfare (or maybe we should say thats a good thing). . Which is to say, most small businessmen set up an offshore company without the fanfare or notice. . . . This information has been compiled and presented by John Schroder of Ascot Advisory Services, for the benefit of clients and readers. Ascot Advisory Services provides assistance with such matters as offshore company formation, Panama Foundations, offshore banking, and special services in the Dominican Republic regarding residency, free zone applications, etc. For more information: |