While others fought, Halliburton made a lot of money on a no-bid contracts in Iraq. No-bid contracts are highly unusual in government but it helps when your former CEO is now the vice president. Today, it was announced the corporate headquarters of Halliburton has been moved to Dubai, United Arab Emirates. The CEO went on to explain that the company will maintain an office in Houston.
In my opinion, the purpose of this move is to avoid taxes. David Cay Johnston wrote a great book called "Perfectly Legal." It explains how wealthy corporations move their headquarters away from the United States to countries in which they will pay little or no taxes. Mr. Johnston points out that these companies still get contracts from the U.S. government. Recently, Congress tried to correct this practice but as they say, "money talks."
In the news item, it was stated that Halliburton's "announcement appears to signal one of the highest-profile moves by a U.S. corporate leader to Dubai, an Arab boomtown where free-market capitalism has been paired with some of the world's most liberal tax, investment and residency laws." It looks like this is just another patriotic company that is moving out of the U.S.
UPDATE: Congress will investigate the Halliburton decision to move its headquarters to Dubai. Charles Schumer said: "For one of the largest contractors with the United States government to move its headquarters overseas? [It] just doesn't look good, doesn't sound good, doesn't smell good."
Reader Comments ( Page 1 of 2)
1. Of course it might just make sense for an oil services company to locate in the middle east, where most of the oil is. No bid contracts are reasonable when the exact scope of work is not known ahead of time.
The connection to the veep is troublesome, especially if he still has a sizable financial interest in the company. The overcharges should be paid back to the United States, although I don't know how anything can be built in he middle of a civil war even with an unlimited budget.
Steve Bonomo at 11:04PM on Mar 11th 2007
2. Strangely enough the corp that is benefiting the most from the Iraq war doesnt want to contribute its share of the taxes to run the war. Just because its legal doesnt make it right. All future no-bid contracts should be awarded to state side corps!
Phil at 12:32AM on Mar 12th 2007
3. Don't dispair. Cheney kicked backed his buddies big time to take Halliburton to Dubai. And just remember Cheney did no divest he put his payments on diferment which makes his payment over 8 million dollars a year. How does the Republican Party explain this???
connie at 1:49AM on Mar 12th 2007
4.
It is just like opening a new corp. with no tax liabilities. Great for them...
I hope they enjoy the miserably hot summers in Hell!!!
Manfred at 3:48AM on Mar 12th 2007
5. There's just no pleasing some people. Halliburton is the giant devil that Libs love to hate. Now they are moving out and you bash them even more. The problem is with all the arguments is that you don't know what the hell your talking about most of the time. Halliburton is still going to be a U.S. registered corporation so they will still be paying taxes. It just makes good sense to move an oil company closer to the oil. Also, you constantly bash Halliburton for making so much money but over the last 52 weeks their stock is down 3%. You say they are price gouging because they charge so much for petrol. I say that moving fuel into a combat zone has an inherintly higher cost than moving a tanker truck into Cleveland. Do you think a guy driving a truck, pumping gas, or working a storage facility in Iraq is going to cost the same as Joe Greasemonkey in the USA. Hell no. If you want people to work in the hot zone you gotta pay'em and pay'em good. Do you have to pay a couple hundred armed professionals to guard an Exxon station in Boston. Hell no! But you do in Iraq. Do you have to move tanker trucks on I-95 with armed escorts. Hell no! But you do in Iraq. Do you have to house and feed every employee of Texaco. Hell no! But Halliburton has to do that for their employees in Iraq. Get off your high horses. The Dem leadership is using you for pawns to express outrage. The only reason Dems are outraged is because just like GOPers they own shares in Halliburton and Halliburton makes campaign contributions to both parties. Its business as usual. Everyone wants to get their piece of the action. As Don Fannucci said in the Godfather "Just enough to wet my beak". Thats the way big business works and has always worked. To beleive otherwise is naive.
Bobby E at 10:07AM on Mar 12th 2007
6. Phil is right on. I'll bet Cheney's house(s) is already listed. Do you think he's lined up a new hunting partner over there?
Bill at 6:41PM on Mar 12th 2007
7. Haliburton stock went up more than 300% since the wars in Afghanistan and Iraq and Katrina. Isn't that too bad that their stock went down a measly 3%? Boo Hoo. Iraq, Afghanistan and the Gulf Coast are still in disrepair. Dubai has state sponsored terrorism, but don't bother to connect the dots. Just blindly believe in Bush because he said he believed in Christ. Lord open these people's eyes. He and his senior White House official have turned your house into a den of thieves.
JKEJulian at 7:15PM on Mar 12th 2007
8. Moving To Dubai Explains The Port Situation
Last year this Administration sought outright to allow the Saudies to take over some of our Ports including the ones that handle our most sensitive weaponry.
Later, if I remember correctly, after public outcry it was determined that just maybe a named American Company (Halliburton) (or one of its subsidiaries) should partner and/or help the Saudi Company that was seeking the Ports.
Now, out of the blue, Halliburton, who has already been awarded most of the billions we have already paid into this "Occupation" called War, is moving to Saudi Arabia abscounding with not only our money but with more jobs and who knows what else.
Yes, leaving the country rather than having to answer questions or have its books audited by this Congress.
But the big problem is whether our safety has been outright compromised by Dead Eye and his friends.
This is nothing short of treason and Dead, George, and Condi-Liar should all step down.
E. Barnes at 9:29PM on Mar 12th 2007
9. IT WILL BE INTERESTING TO SEE HOW THIS MASS HYSTERIA AND HYPNOSIS PLAYS OUT IN THE NEXT FEW YEARS ....AND THE 08 PRESIDENTIAL ELECTION.
MANY OF YOU PEOPLE ARE WAY OVER THE EDGE. I WONDER WHICH DRUG MOST OF YOU ARE ON.
LES REDMON at 10:34PM on Mar 12th 2007
10. After all the crap the left and big media has been pouring down on Halliburton for years now, who can blame them for leaving. Who the hell would stick around and be a target for the libs if they didn't have to. Schumer and the other socialists will force more than Halliburton overseas if they keep up the rhetoric of confiscation by tax and a charged anti-business philosophy. Why stay where you are not wanted? They are an international business and don't NEED to be in the US. The oil companies might just follow. Remember Hillary wants to steal thier profits. Perhaps then the tobacco companies, then the defense contractors and finally any other profit making and unpopular or politically incorrect company that wants to keep away from socialism and the scapegoating that is the hallmark of the democrat party.
We have allowed the Dems and big media to put a plague upon Halliburton about no bid contracts. Nice soundbite and a way to get at the Vice President through association. They never tell the whole story. No bid or restricted bid contracts are unusual only if there are any other bidders willing and able to do the job. Halliburton took many contracts that nobody else wanted ,like provisioning the troops. The profit they made was less than the interest they could have gotten at the bank. The division of the company that did this was one of the least profitable in the corporation. Who will do it now? Some of Hillary's friends? Could be like travelgate. Even Clinton pushed for Halliburton to accept no bid contracts, because even he and his emasculated Defense Dept.realized that they do what they do the best and they WERE an American company.
When they are gone we will miss them along with the jobs and the huge tax contributions they move away with them; but don't worry the socialists will find some other target to continue the class warfare and anti-capitalism they feed on. Just don't ever bet that Halliburton stock (like moveon.org's Sorros) they will go after the well heeled leftist Hollywood crowd. How about a windfall profits tax on movie actors and producers that make excess profits?
joe m at 10:51PM on Mar 12th 2007
11. After all the crap the left and big media has been pouring down on Halliburton for years now, who can blame them for leaving. Who the hell would stick around and be a target for the libs if they didn't have to. Schumer and the other socialists will force more than Halliburton overseas if they keep up the rhetoric of confiscation by tax and a charged anti-business philosophy. Why stay where you are not wanted? They are an international business and don't NEED to be in the US. The oil companies might just follow. Remember Hillary wants to steal thier profits. Perhaps then the tobacco companies, then the defense contractors and finally any other profit making and unpopular or politically incorrect company that wants to keep away from socialism and the scapegoating that is the hallmark of the democrat party.
We have allowed the Dems and big media to put a plague upon Halliburton about no bid contracts. Nice soundbite and a way to get at the Vice President through association. They never tell the whole story. No bid or restricted bid contracts are unusual only if there are any other bidders willing and able to do the job. Halliburton took many contracts that nobody else wanted ,like provisioning the troops. The profit they made was less than the interest they could have gotten at the bank. The division of the company that did this was one of the least profitable in the corporation. Who will do it now? Some of Hillary's friends? Could be like travelgate. Even Clinton pushed for Halliburton to accept no bid contracts, because even he and his emasculated Defense Dept.realized that they do what they do the best and they WERE an American company.
When they are gone we will miss them along with the jobs and the huge tax contributions they move away with them; but don't worry the socialists will find some other target to continue the class warfare and anti-capitalism they feed on. Just don't ever bet that Halliburton stock (like moveon.org's Sorros) they will go after the well heeled leftist Hollywood crowd. How about a windfall profits tax on movie actors and producers that make excess profits?
joe m at 10:48PM on Mar 12th 2007
12. What does irk the Bushies? No matter what transpires they continue to support them? I can't understand how people can be so devoid of any angst or ire over major conspiracies and criminal acts committed by our present administration. This must have been the same loyalty that the blind patriots followed Hitler with. Nationalism is a disease in itself. Why don't these people ever consider that they could have been born somewhere else and been brought up Islamic or some other religion? They could have been born under another system of government and maybe would have been content with that. Blind patriotism is not really patriotism at all.
Richard Quiggle at 1:34AM on Mar 13th 2007
13. Joe M and Bobby E above are correct. Halliburton will no fewer taxes in the US than they do now. Any company that migrates out of the USA without a change in their current shareholders, remain taxable as a US corporation, regardless where their headquarters are located. This has been the law since March 20, 2002. I am sure Halliburton will be glad to be shed of the US Defense Contracts once it finishes splitting off KBR as an independent company. KBR is Halli's construction subsidiary that has the Iraqi contracts.
BudaBob at 6:04AM on Mar 13th 2007
14. Comes as no suprise............
Sick Of It at 8:05AM on Mar 13th 2007
15. HALLIBURTON IS JUST ANOTHER ENRON, EXCEPT THAT IT
SCREWED THE TAXPAYERS WITH ALL OF THOSE NO-BID CONTTRACTS AND NOW THAT THE DEMOCRATS ARE SEEKING
ACCOUNTABILITY, THEY DECIDE TO FOLD THEIR TENTS AND GO WHERE BOY GEORGE TRIED TO SELL U.S. PORT OPS
TO, (any wonder ?) THAT WAS DEAD EYE DICK'S DOING
BUT BOY GEORGE GOT THE FLACK FOR THE SUGGESTION.
CONGRESS SHOULD INVESTIGATE THE HELL OUT OF THIS
TEXAS (ENRON) COMPANY AND TAKE AW2AY THEIR U.S.
REGISTRATION. RICH WHITE EUROPEANS MY BUT, THIS IS YOUR TYPICAL RACIAL AMERICAN CORPORATION OF
GREEDY CEO'S.
BILL GREENE at 8:37AM on Mar 13th 2007