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Joseph diGenova, former U.S. Attorney, and Rebecca Wilkins, Citizens for Tax Justice, weigh in on Delaware’s tax policy and big corporations setting...
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Right here's a question.
So what -- at 1209 north orange in Delaware.
-- think big think apple thing Google for American Airlines more than 285000.
Companies.
All claim that address.
As their tax safe haven in fact.
There are no more corporations than people in Delaware and full disclosure the parent company of Fox Business that's News Corp.
is even incorporated there as well.
So here with me now is Joseph did you -- -- but former US attorney and Rebecca -- from the citizens for tax justice thanks to both of you for joining us.
Until June from -- -- Delaware figured out.
That the rest of the country has not.
Well I was born and raised in Delaware and I -- Delaware in any here's the here's the deal since 79 -- two.
This little engine that could Delaware has been trying to figure out a way to beat the big boys the big states.
And so in 79.
That makes it a nice place for corporations to live and breathe and do business and it is -- tax haven in many many ways they have the best corporate.
Litigation court system in the world it's called the Chancery court its most respected business court in the world other courts look to it for guidance.
And they just figured out a way to do business for example a number of years ago a friend of mine drafted a lot -- that allowed Delaware.
Two -- obliterated usury law for credit card companies and then all the big banks moved to.
Well a lot guy right there so we're right -- Peter Delaware has made 860 million dollars offer this as a result.
You know it it sounds like they've they've got it made it figured out something Smart you don't think so.
Well at -- -- -- has just side -- tax revenues from other states around the country about having huge budget problems.
And the rest of us taxpayers make -- the gap.
Yes and -- -- just win those businesses back -- they made their business lives.
You know keynote competitions a good thing if you're talking about goods and services that we have competition between businesses we get a better -- at a cheaper price.
But competition between governments is not a get Spain while it's -- if that massive -- to the bottom -- and they're just sucking revenue out of that system it's not just meeting revenue from Pennsylvania to Delaware.
Delaware's collecting less revenue -- is -- is.
Here's Obama -- argument at Joseph maybe you can address this is -- companies don't actually pay tax I pay the tax because when I buy an apple product dried buys something.
Up from Coca call I -- a can of Coke.
They pass along whatever tax they're paying us to -- -- so -- -- -- more tax that means I'm paying more and I'm just handing over to the government that isn't that great it's spending it anyway well.
Well here's the other thing you don't tax laws are no different than any other state law -- -- be a right to work state why do you think all the foreign car manufactures are moving to the south.
Because there are no unions down there.
The reason these companies come to Delaware is the Delaware has the most liberal laws for allowing the board of directors to run their company.
They have a Chancery court that's expert and efficient -- ruling on corporate disputes we shareholders and anybody else.
This is this is what America's all about.
Real free enterprise I gotta -- the last -- to Rebecca isn't it better than them sending the business overseas and taking apple overseas that they can't be in Delaware.
They're damn bad they're using offshore tax payments.
Void -- you asked federal tax and using Delaware and other state tax -- havens have -- their taxes and others say OK I guess the lesson is money goes where it's treated best thanks to both of you for joining us we appreciate your time.
Great to be with you thank.
