Haliburton Co. (NYSE:HAL) is the latest U.S. company headed oversees for friendlier tax laws.
The company is relocating its corporate headquarters from Houston to Dubai, which the Associated Press points out has some of the world's most liberal tax and residency laws. Haliburton said its moving because of the growth opportunities in the region and analysts say its smart strategically. The company also is eager to jumpstart is stock price which has barely budged over the past year.
Though the stated reasons are financial, there's obviously a political dimension.
The Democrats who control Congress are going to make Haliburton's life miserable. Last month, federal investigators claimed that Halliburton was responsible for $2.7 billion of the $10 billion in contractor waste and overcharging in Iraq, the AP said.
Not surprisingly, bigshots in Congress were outraged.
Sen. Patrick Leahy (D-VT), chairman of the Judiciary Committee, called it "an insult to the U.S. soldiers and taxpayers who paid the tab for their no-bid contracts and endured their overcharges for all these years." House Oversight and Government Reform Committee Chairman Henry Waxman (D-CA) may hold a hearing on the issue, an aide told Reuters.
There's been a hubbub over similar moves by Tyco International Ltd. (NYSE:TYC) and other companies. In reality, there's little the Congress can do. In fact, I bet some Democrats would be happy to help Haliburton box its stuff up.











Reader Comments (Page 1 of 1)
3-12-2007 @ 9:13AM
lynn3808 said...
personally I think we need to do everything to boycot companies who would rather be overseas. We do this on the consumer side as well as the investor side. DUMP HALIBURTON STOCK and Really start to make them pay.
3-12-2007 @ 10:04AM
don newman said...
Halliburton is right. Congress is stupid as usual. When our military needed food, gas and supplies Halliburton was the only one with the security, infrastructure and deep pockets to get the job done. Of course they overpaid their supplier, of course they paid bribes! While Congress is still sitting on their collective butts trying to decide whether we should feed our military or not, our men and women ate, got supplies and what they needed from Halliburton. As usual, politics hides from action and pursues the performers.
3-12-2007 @ 10:48AM
don head said...
How many jobs are actually leaving Texas? Thats all we will lose with this move to Dubai> I hope ther are filled by the 'liberals' who claim Haliburton is some sort of 'evil' corporation. At the least this shows our tax system punishes companies that want to remain in the US.
3-12-2007 @ 12:31PM
pat spencer said...
Like all the democrats media types like Bono
who moved from Irland to the Netherlands to
save taxes. But we stupid Americans pay for
that bunch of exibitions to tell us how to
spend our tax dollars on people who sleep around
give me a break.
We know senators and congress people go to
Md. like the reporters for health care not WR.
Way to go Haliburton.
3-12-2007 @ 12:20PM
Cdelairre said...
This is a boon-daggle for the CEO. So long as the tax money on their profits comes back to the U.S., from which those profits were made, moving the office is more symbolic than anything else. This is a tier 1 firm with world-wide interests and Dubai may be more upscale for impressing clients. The non-bid contracts and abuses are unconscienable, and at its worse may be considered blood-money, as these abuses occurred concurrently with soldiers dying in the field. But the same abuses occur at every level of the military procurement process. It's not so long ago that executives in the defense electronics and aerospace industries were indicted for the same kind of abuses. They were all world class organizations as well. In this regard Halliburton is in good company. But remember, pigs get fat while hogs get slaughtered. Drawing congressional oversite on these contracts is trading short term profits for long term depression, if it is determined that high level corruption or favorable treatment was involved. The CEO's boon-daggle may be substituted for a minimum security federal cell.
3-12-2007 @ 12:19PM
Madeline Hopson said...
The handwriting is on the wall. We never would have needed Halliburton military contracts if Dick Cheney and George Bush had not drummed up the invasion of Iraq. I think they knew what they were doing, and, took advantage of a Senate and all fellow American patriots who were still reeling from 911. These guys are nothing but "follow the money" crowd, which all Republicans believe in ... much more so than their purported religiosity. The Democrates need to change these laws so when a "corporation" leaves America, it has to pay some outrageous, no loop-holes tax and its CEOs have to give up their American citizenship. How's that?
3-12-2007 @ 12:16PM
Barbara Buoncristiano said...
I think it equally likely that they're moving to avoid future prosecution. They should certainly pay for the lives lost in Iraq because of their failure to provide standards and their greed.
3-12-2007 @ 1:37PM
Cdelairre said...
Incidentially, if it were determined that any of those federal attorneys fired by the Attorney General, were actively pursuing a Halliburton fraud case, all hell would break loose. If it were the case, all I can say is, get ready for some fireworks folks, because this one will go over the top, cannot be contained, and would implicate the highest administration officials. If you detect some snooping around in that area, buy some network stock, ratings will go through the roof.
3-12-2007 @ 3:02PM
ldiamond said...
No surprise to anyone who sees these reptiles for what they are. Bush & Cheney's handlers and keepers are the rich and elite and like good little republicans, they make policies that benefit this minority of America. Republican style democracy is nothing more then a plutocracy. Bush & Cheney knew that wealth consolidation towards the rich minority of the nation is one of the byproducts of war which is why 21st century republicanism is radical islam's evil twin in this nation.
3-12-2007 @ 4:52PM
snarkey one said...
Think about this for a second. Haliburton is the second largest oil field service company in the world. The US oil & gas industry is populated by Americans - many of whom are approaching retirement age - if this company finds it convenient to wash its hands of the US and its workers continue to retire who will ensure that the third largest producer of oil and gas will continue to have a workforce -- that's us folks. With that us based workforce comes requests for supplies, tools, equipment, etc. All of which go to Houston or thereabouts. Thre's a lot more at stake here.
3-13-2007 @ 1:00PM
Steve said...
Sung to the tune of Steve Millers:
"Go on take the money and run"
This heres a story about Haly-B and K B Root
Two war profiteers with nothin better to do
Just sit around with the VP, get high, and count the loot
And here is what happened when they decided to cut loose
They headed on over to, old Babylon
Thats where they sprouted a huge hard on
KBR burglarized soldiers and sodomized taxpayers
Haly-B took the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Average Joe is an apathetic citizen
You know he's clueless just exactly what the facts is
He's pretty much gonna let those two escape justice
He gets his info from fox news and Limbaugh faxes
KBR, whoa, whoa, he slipped away
Haly-B caught up to him the very next day
They got the money, hey
You know they got away
They headed on over to Dubai and theyre still laughing today
Singin go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
Go on take the money and run
3-13-2007 @ 9:45AM
jonathan berr said...
Steve:
Kudos on your creativity.
Jonathan Berr
3-29-2007 @ 6:34AM
Jason said...
I have to say I am pretty disapointed in Halliburtons role in Iraq. The company took full advantage of every dishonest loop hole. Dick Cheny and George Bush have to have had some incling that Halliburtons participation at any level in the reconstrucion of Iraq would be construde as war profitearing. If they did not have this understandeing, someone in the real world surely must have pointed this fact out more than once. Dick and George are bad fellows when it comes to honesty. They may have been right about our need to be in Iraq and Afganisatn; however they are and were dead wrong about the need for Halliburton in Iraq. You see, for every dollar laced in Halliburtons profit American soldiers suffered. Those dollars should be spent on prepairing soldier to fight, buying needed equipment, and allowing them to function in their jobs. Hallibirton has placed an un needed handycap on American soldeirs fighting in Iraq, not to mention the redundant waste employing Halliburton created. When I say Halliburton, I am including KBR.