November 5, 2012 § Leave a comment
Company A makes a product in China for $1 and sells it to Company B in the Caymans for $1.01.
Company B sells it to Company C in the USA for $100, which sells it to the public for $101.
Company A doesn’t make any profit.
Company B makes the profit but doesn’t pay any taxes.
Company C doesn’t make any profit.
All three are owned by the same investors.
This is globalization 101.
You would think a guy who wrote a book called Globalization would at least mention it, unless he’s on the side of the inv–oh I get it.