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October 12, 2006

 

OIL COMPANIES TO LEASE AMERICA’S MILITARY ASSETS

Two decades ago corporate taxes comprised 20% or more of America's tax receipts. Now they contribute in the 7% range. Don't all other accounting schemes pale in comparison with this boondoggle?
If an exec gets a perk like a new car or excess moving expenses the corporation bumps up their pay to cover the tax consequences. When the GOP passes tax givebacks such an exec ends up making a profit from the perk-tax-grossup maneuver. Cute eh.
If the cabal of CEOs, Corporate Boards, Directors, Money managers and Bankers conspire to remunerate leading execs (technically embezzle) 5,10,15 or 100 $Mil a year why couldn't FASB and the SEC make a ruling that anything over say two mil a year is actually a payment of or from the corporation's capital. Thus it would not be pay for services and it would not be a corporate deductible expense.
How about if the major oil companies do a sale and leaseback on the military assets of the United States of America? For a modest cash outlay of say three trillion dollars, which the oil companies easily have or have access to, they could depreciate all of America's tanks, ship, planes, Humvees etc and shield 100% of their obscene profits from taxation while hugely reducing the nation-sapping debt built up by the GOP. As opposed to other legally deficient corporate schemes such as leasing European trams or worse yet European sewer systems this scheme can be said to actually pass a significant tax accounting sniff test. In this case a sophomore tax attorney could easily make the case that such military assets are actually employed in the oil companies operations.
Wouldn’t it be nostalgic to be long in dollars and make a killing?
Just thinking.
Craig Johnson 10/12/06

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