How the Netherlands became a corporate tax haven

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And that disparity is entirely unjustified, because far more untaxed American profit hides out in the Netherlands than in Bermuda. Since 2005, nearly half a trillion (!) dollars in American profit has been safely stored in the Netherlands by companies such as Nike, General Electric, Heinz, Caterpillar, Time Warner, Foot Locker – the list goes on and on. Half a trillion dollars: it’s an unfathomable amount of money, nearly twice the country’s entire budget.

pub. 06/2017

Psst–and to bring it back home:

If history is any guide, the US government will eventually swing legislation back in your company’s favor.

In 2005, for example, Congress passed a law that allowed American multinationals to bring home their foreign profits at a temporarily low rate of 5.25% – a mere one-sixth of the regular tax rate. Some $362 billion flowed back into the US as a result. A quarter of that – a whopping $90 billion – had been cached in the Netherlands.

The promise was that the law would create American jobs. But it didn’t, revealed an analysis conducted by the nonpartisan Congressional Research Service. Nonetheless, another profit repatriation tax break will probably take effect soon. Trump’s proposed tax plan includes a temporarily reduced rate of 10% on overseas earnings that are returned to American soil.

And so Trump, for all his MAGA rhetoric, reinforces American companies’ biggest lesson: earn your money in other countries and you’ll pay less tax.

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In Ethiopia, a test of the conventional wisdom

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Contrary to the expert predictions (and ours), quitting was a wise decision for most. The alternatives were not so bad after all: People who worked in agriculture or market selling earned about as much money as they could have at the factory, often with fewer hours and better conditions. We were amazed: By the end of a year only a third of the people who had landed an industrial job were still employed in the industrial sector at all.

pub. 04/2017

De Correspondent on the EU security industry: Who it is, who’s paying for it, and where else the tech goes

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Early last year, journalists from the Netherlands’ de Correspondent contacted their counterparts across the EU, beginning a joint effort to answer questions about European security:

Bodycams, drones, border surveillance, airport scanners, lawful interception, facial recognition – high-tech gadgets are being developed by businesses and deployed across Europe. But what kind of businesses make these technologies? How much money do they earn from them? How are they working with governments? And do these tools really make us safer? We wanted to find out. Not on our own, but working with a team from all over Europe.

pub. throughout early 2017

They’re collecting the many and complex answers in their series Security for Sale; the articles are linked in the right sidebar of the page. Among other things, in a globalized and often opaque world, it’s great to see the collaborative efforts of investigative reporters in action.