Transplanting Taxes from Corporations to the Rest of Us

[DirtyDawg]

4. The strategy...

...of creating a separate profit-center/company in a country - or US state like Delaware - that doesn't tax incomes of corporations, to house all your ' intellectual properties', then to charge all the corporate entities a royalty for their use, is not a new concept...but it certainly is a profitable one. And by the way, usually the primary 'property' that they charge for is simply for the use of the damn name of the company. So, for example, the 'rate payers' of a state where a, say, telephone company, did business - and with the full knowledge of said state's Public Service Commission - were charged an additional 5% for their service for no other reason than the parent company conjured up this elaborate 'tax dodge' just for hanging the name 'Bell' on their trucks and invoices. A strategy that as netted hundreds of millions to the corporations' bottom line over the years.