The recent spate of tax inversion deals in the country has the corridors of Washington abuzz with worried whisperings. And while our lawmakers are trying to figure out a way for them to be able to curb this worrisome trend, American banks have taken to making hay while the sun shines.
JPMorganChase, whose CEO Jamie Dimon recently proclaimed a profound love for the American nation, and Goldman Sachs, whose CEO Lyod Blankfein recently wrote an opinion piece saying how America is still one of the top choices for a country one should invest in, are two of the biggest banking names behind the move to invert tax domiciles favored by American companies.
Democrats Continue to Defy Reason
Tax lawyers analyzing the industry estimate that investment banks like Goldman Sachs, and JPMorgan have made, or will make about $1 billion in fees in the last three years by helping top American companies move their tax domiciles abroad because the liberals that control the country refuse to make America competitive. The tax lawyers aware of the modus operandi behind the recent tax inversions say that these banks advise, and even persuade, the companies to move their headquarters to a country with better tax rates than America and then mint money from the advisory role.
Last week President Obama criticized the companies engaging in tax inversion tactics by saying that he did not care if it was legal, he still considered it as ‘corporate desertion’. President Obama has publicly admitted that Washington’s policymakers are looking at legislation to find a way to screw American companies even more while ignoring the national deficit, 50 million Americans on food stamps, Russia laughing at Obama and defying him, 150,000 dead in Syria, America’s southern border being overrun, and so on.
Michigan Senator Carl Levin has vowed to find some laws that will make it real hard for American companies to save money and not be ripped off by greedy Uncle Sam. Senator Carl Levin is a Democrat from Michigan who is also chairman of the Senate Permanent Subcommittee on Investigations who is on the side that turned Detroit into a living cesspool.
Banks are Doing their Job
Tax lawyers say that many companies engaging in tax evasion by inverting domiciles are dependent on their banks for advice on how to proceed. In this way banks play the role of co-conspirators in the plan by aiding companies in trying to save money and stay away from bureaucratic avarice.
As far as numbers are concerned, Goldman Sachs has reportedly made around $203 million since 2011 by advising companies on inversion deals and mergers, while JP Morgan stands to collect more than $185 million, while another bank, Morgan Stanley will probably be $98 million by the end of the year. Citigroup is expected to have raked in about $72 million in the same time frame.
Tax attorneys also say that not one bank has been known to decline a tax inversion assignment on principle because in this tough economy you have to make a living somehow and helping companies save money is a noble act. If Harry Reid would listen to House Republicans this would not even be an issue.