Austerity & Apple

Early this week, leaders of the eight greatest developed economies met in Lough Erne, Northern Ireland (UK), for the G-8 Summit. At the G-8, President Obama, British Prime Minister David Cameron, German Chancellor Angela Merkel, and others tackled a number of thorny issues, such as the ongoing civil war in Syria. Another major issue tackled this week was corporate tax evasion.

So what did everyone ultimately agree to?

Has the G8 made progress cracking down on multinationals playing off one regime against another to lower its tax bills?

The world leaders have called on the OECD, the body that draws up international guidelines on tax, to draft a template for multinationals to report the tax they pay to taxing authorities in each jurisdiction in which they operate. Cameron claims this will "identify where multinational companies are earning their profits and paying their taxes so we can track and expose those who aren't paying their fair share". Tax campaigners, however, suggest it does not go nearly far enough. There was no commitment for this information to be made public or for companies to provide greater disclosure on other economic activity on a country-by-country basis.

What about closing loopholes in international tax rules exploited by firms such as Google, Apple and Amazon?

Several issues around taxing multinationals are being worked on furiously by the OECD before a wider G20 meeting of finance ministers next month. The G8 promised to "take the necessary individual and collective action" to back up any recommendations from recasting the rules. As a broad statement of intent the G8 leaders said: "Countries should change rules that let companies shift their profits across borders to avoid taxes."

So G-8 leaders agreed to share more information. Otherwise, they mostly just agreed they and other countries "should do something" on corporate tax evasion. We'll see how far this goes.

But hey, at least they acted embarrassed over this. Here in Nevada, however, our state and local governments have rewarded Apple's "unbelievable chutzpah" by showering the multinational corporation with corporate welfare! Even as the rest of the world has become increasingly outraged over Apple stiffing public coffers by exploiting as maby tax loopholes as possible, Governor Brian Sandoval keeps heralding Apple's corporate welfare as "economic development".

But really, is that true? Does Nevada truly benefit from rewarding companies that come here just to avoid paying taxes elsewhere? When did crippling austerity become "economic development"?

Think about it. There's a reason why G-8 leaders were shamed into bringing up corporate tax evasion. While these powerful multinational, multi-billion dollar companies come to Nevada and go elsewhere to avoid paying their bills, real people are suffering the consequences of austerity. Since they don't pay their fair share, we're paying for their sins instead.

Can we afford any more of this?

Still Rotten

Last June, Reno, Washoe County, and Nevada state officials gushed with pride in announcing Apple's new data storage facility and business center in Washoe County. Just weeks after The New York Times exposed Apple's shell company in Reno as part of its strategy to evade California and federal taxes, officials here essentially rewarded Apple's atrocious behavior by bestowing $89 million worth of corporate welfare tax breaks in exchange for the data storage facility and Downtown Reno business center.

But wait, Apple did announce the data storage facility and Downtown Reno business center. Sure, it sucks that California and the feds lost out on tax revenue. But hey, at least we get something for it! Well, maybe not.

In January, we had a progress report on Apple's planned expansion into Nevada. Basically, there's been no expansion. There was still no ground broken on either the data storage facility or the Downtown Reno business center. Yet despite the clear lack of progress, Apple continued to cash in on the tax breaks and the relief of criticism deflected from Braeburn Capital, the Reno shell company set up by Apple to avoid paying taxes elsewhere.

So what's up with Apple now? Oh, there's just continuing lack of construction on both promised Northern Nevada projects. In fact, the building permit for Apple's business center has been sitting at Reno City Hall since October. Instead, another Apple project recently moved. Guess which one.

[Braeburn Capital is] still in Reno, on the corner of McCarran andLakeside, with a (small) sign out front, a locator sign in the lobby and a sign on the door. The firm moved about a year and half ago from its location at 72 0 Sandhill Road in south Reno.

Apleasant but guarded man answereda call at the firm's door this morning.He confirmedthat the third-floor office in the building at 6900 McCarran Boulevard is indeed the location of Apple Braeburn.He wouldn't identify himself, and referred all questions to Apple's Cupertino offices.

Meanwhile,the building permit for Apple’s proposed downtown business center has been sitting at RenoCity Hall since October.

That permit will expire next month,but the contractor behind the project, Reno-based UnitedConstruction,could ask the city for an extension.

Those extensions are usually approved by the city, said Fred Turnier, the community development director for Reno.

Oh, yes. That's right. There's been no action on either of the promised Apple projects for Northern Nevada. Governor Brian Sandoval and his budding reelection campaign PR team heralded these projects as breakthroughs in economic development. Instead, Apple is getting giggles at our expense.

Let's just admit it already. The gig's up. Using corporate welfare for "economic development" is not working. Instead, it's failing Nevada.

Last Tuesday, the usual crew of "business leaders" begged the Nevada Legislature to kill The Education Initiative. They blathered on about how "bad for business" a mere 2% margin tax on revenue over $1,000,000 is. Who needs better funded schools when the state has such a "great business climate"?

Yet how have we benefited from our supposedly "great business climate"? How has our commitment to low/no taxes helped economic development? Where are the jobs?

Apple is just one example of Nevada's failed policy of "promoting economic development" by way of corporate welfare. We promise no taxes, and we receive no benefit. There's something rotten in Reno... And in Carson City. And the only way Nevada can actually achieve true economic development is by getting rid of the rot.

NV-01: Another Scandalicious Repuke

Ah, that Nevada GOoP: home of such glorious luminaries as "Luv-Guv" Gibbons, Johnny Casino, Suzy Lowdown, Batsh*t Crazy Angle... And now, Michelle Fiore! Yes, my dears, Shelley Berkley must really be shaking in her boots (more like laughing her boots off!) over this. I mean, she's armed and dangerous... And even has a $47,351.26 lien against one of her properties for not paying taxes on it!

Now kids, that's what I really consider good ol' fashioned GOoPer family values! They may not like out of work Nevadans getting help while they look for new jobs, and they don't like elected officials like Dina Titus who actually use their positions to help constituents facing serious problems like home foreclosure. But oh yes, these GOoPers always love them some tax evaders and law breakers!

Oh, and by the way, speaking of my Congresscritter... She may be running in District 1, but she actually lives with me and Dina Titus in District 3. I guess she was concerned she couldn't compete well against the professional GOoPer campaign switcher Joe Heck? And she doesn't fear Craig Lake, a candidate so formidable he's afraid to call himself a Republican?

Well, obviously her campaign is off to a great start...



And best of luck to Michelle Fiore... She's obviously into my kind of GOoPer crazy! (Just don't expect Shelley Berkley to be easy on this latest GOoPer buffoon.)