JOHN KERRY PROVIDED BIG OVERSEAS TAX LOOPHOLE FOR HEINZ CORPORATION

WMCA-NY ^ | 7.15.2004

[KMC1]

NEW YORK - In recent days, at every campaign stop John Kerry talks more and more about the evils of allowing companies to take advantages of overseas tax breaks.

According to Senate legislation and the public record John Kerry believes in punishing companies who ship operations off of American shores - as long as he or his wife does not benefit from it personally.

According to reports, John Kerry, personally worked on tax legislation that was designed to punish companies for moving off shore. Kerry then pushed for a major loophole that would exempt the HEINZ corporation from the same penalties.

Donald Luskin who serves as Chief Investment Officer of Trend Macrolytics LLC made the issue public in a report on Wednesday.

Luskin contended, "Kerry's economic proposals seem tuned to serve his wife's economic interests. His proposal last March to end tax breaks for U.S. corporations that do business overseas was designed with a loophole that would allow the H.J. Heinz company keep its overseas tax breaks and get a lower domestic tax rate at the same time."

Reportedly Luskin went on to press for full disclosure of Ms. Heinz Kerry's tax records before the election. Luskin reported that with known information of what Ms. Heinz Kerry's worth is (upwards of 3.2 billion) her reported income for 2003 of only 5 million is laughable.

The speculation is that she is the worst investment manager of all time or she is quite adept at hiding investments.

[truthkeeper]

My my, aren't we ethical.

[Paradox]

First time I have seen this news item other than via NewsMax. I wonder if it will gain any traction. I would really like to see the actual legislation and see how this loophole was provided. Is there a "smoking gun" so to speak?

[gubamyster]

Luskin's article

[John.Cooch]

Did you know that J F'g K was a Decorated "Vietnam War Hero"?

I, I didn't know that.........

[FormerACLUmember]

If we had a real independent mainstream media, this would be in every headline, every magazine cover, and every TV news lead story.

Because the media is in reality a disinformation and propaganda unit of the Democratic National Committee, 99.9% of the population will never hear this important story.

[bray]

Why is it OK for Heinz to have 60 plants overseas, full of low paying jobs but not any other Corporation?? Don't those Corporations have the same oppressive gummit regs and taxes?? Why does Heinz get to take advantage of turd world wages but nobody else?? We need to see your taxes Yaaaawn Benedict Kerry!!

Pray for W And Our Troops

[Admin Moderator]

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[I-53]

I believe their tuna plant workers on American Samoa were being paid under 3 dollars per hour while the HKs amassed their palatial mansions.

[freeangel]

kerrys mantra "do as I say, not as I do, do as I say, not as I do, etc"

[Wally_Kalbacken]

Not to pick nits here - but the assumption that she is "worth" between $1 and $3 Billion needs to be qualified. The wealth that she once owned may, in the aggregate, be that great - but almost certainly it is in the form of trusts for the children and grandchildren of John Heinz. She may be a trustee of these funds and may direct the investments and manage them - but it wouldn't be fair to divide her reported income over such assets, because she could not liquidate them and realize their value. Much of the income that Luskin is correctly supposing is generated by this massive pile of wealth is generating income for trusts - which file their own income tax returns.

That being said - the level of complexity that accompanies the intelligent holding of such wealth (trusts, family limited partnerships, overseas holding companies, etc. etc. etc.) begs for much greater disclosure by Mrs. Heinz-Kerry. The likelihood that wealth of that magnitude incurs a conflict if interest, just incidentally, is so much greater than wealth like Vice President Cheney (which caused major hemorrhoids in the press) that Theresa needs to come clean.

[sport]

Bump

[conservative in nyc]

It's based on the NewsMax article.

As far as I know, there is no "smoking gun" or actual legislation. This comes out of Kerry's March campaign proposal to reform the way U.S. corporations with foreign subsidiaries are taxed. Flip-Flop hasn't shown up in the Senate enough to put it on the floor or get a vote (it probably wouldn't make it out of the Senate Finance Committee, anyway, in an election year).

[tobyhill]

Cooday'tahh

[conservative in nyc]

I believe their tuna plant workers on American Samoa were being paid under 3 dollars per hour while the HKs amassed their palatial mansions.

They were being paid the American Samoan minimum wage for tuna industry cannery workers, $3.05 per hour in 1995, $3.26 today. This rate is set by a special industry committee appointed by the U.S. Department of Labor, and varies by industry. There's nothing illegal about that. I'm sure Heinz workers in other places were paid much less.

As far as I can tell, R.J. Heinz Co. no longer owns the American Samoa Starkist plant. It was sold as part of a larger transaction to DelMonte in 2002. Tuh-ray-zuh received DelMonte stock in that transaction, which she sold in 2003.

We need to remember to keep the R.J. Heinz allegations in perspective --- Tuh-ray-zuh has sold most of her Heinz stock, and owns only about 4% today. It may not even be her largest stock holding.

[dano1]

I wonder if it will gain any traction. I would really like to see the actual legislation and see how this loophole was provided.

Here's the Detroit News story. Maybe the loophole has to do with the following:

"He also would allow companies to defer taxes when they located a business in a foreign country that serves that nation’s markets. A U.S. company seeking the tax break could open a car factory in India to sell cars in India, for example, but could not relocate abroad to sell cars back to the United States or Canada."

Since National Review picked up this story, there may be something to it. Also, Kerry's wife certainly is acting as though she has something to hide when she refuses to follow normal financial disclosure practices, so Kerry is on very thin ice to begin with.

[bray]

We still need to see how their lawyers cook their books while Yaaaawn votes against tax cuts for the regular guy! Let's see if they are paying their fair share??? 5 million tells me they are hiding $$millions!!

Pray for W and Our Troops

[Finalapproach29er]

Bump,to expose the Theif from Massachusetts.

[I-53]

I have never understood why a corporation that pays fish cleaners in Puerto Rico $7.00 per hour seems to think when it gets down here that a Samoan is only worth $3 per hour. I do not subscribe to pseudo economics that say this is the way it must be. I rather subscribe to the gospel that a Samoan is entitled to the same pay from the same corporation if he does the same work as any man or woman born in any other part of America. I would certainly like to believe that both Puerto Rico and American Samoa are part of America. After all, our sons and daughters fight and die for America. All we ask in so doing is that we be given no more or no less than any other American.

THE HONORABLE ENI F. H. FALEOMAVAEGA