Quote:
Originally posted by lendaddy
So you admit that the oil business in the US is dwindling (not because we don't have oil) and that taxes here are much higher yet you don't feel either is a legitimate driver in their move?
Now I agree that many of their potential clients are in the middle east and that is a large player in their decision, but if oil exploration and refinement were unleashed here and taxes were on par with Dubai, they would more than likely stay...yes?
*disclaimer: I know they haven't actually moved the company, just certain aspects and personnel. I am speaking to the theory if they do.
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The US is declining as a % of future global oil production, I believe that is true. Whether taxes are higher here - depends on where you compare it to, if they chose a tax haven like Bermuda then yes; I'm not thinking they would incorporate in Dubai.
Are these legitimate business reasons to move - of course.
My point is not that HAL's move (today of the CEO, maybe tommorrow of the company) is irrational. HAL is a big and not-stupid company, they don't do things for no reason.
My point is that when people tell you HAL's move is due to excessive regulation/costs in the US, and try to make some political point about how we need less EPA, less SEC, less OSHA, less IRS, etc - that is bogus.
If my explanation/theory of HAL's action is correct, then this move is going to happen regardless of US regulation/costs. (Unless you think the US can have tax rates like Bermuda.)
It always amazes me how small business owners feel some kinship with big corporations, and sing the "less regulation, less taxes" song that the big corps want you to sing, thus allowing big corps to use small businesses as their "poster children" in lobbying for political changes that are designed to benefit them and not you.
HAL has about as much in common with your business as you do with an ant. They get all the political favors and tax breaks; you get none. Can you hire $500/hour lawyers to devise tax schemes? Can you re-incorporate in tax haven countries? Can you meet with the VP to lobby for favorable govt policy? Of course not.