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But it’s not just environmentalists who are howling in the wilderness.
“The firms involved have asked the US State Department to approve this project, even as they’ve told Canadian government officials how the pipeline can be used to add at least $4 billion to the US fuel bill,” Philip K. Verleger, president of PKVerleger LLC, a Colorado consulting firm that specializes in research on oil market economics, wrote in a Minneapolis Star-Tribune commentary last March.
Why Canadian crude oil producers would choose Keystone XL when other pipelines to the US are running well below capacity has much to do with diversifying away from the US market to more lucrative markets in Europe, China, and other Asian countries, Verleger and others argue. Trends seem to support this thesis.
. . . .
That trend was captured in testimony Sept. 17, 2009, before Canada’s National Energy Board. Seven Canadian companies were willing to pay higher pipeline tariff costs for using the Keystone XL pipeline, the testimony showed, in order to bypass Midwest refineries by sending 500,000 barrels per day, the lion’s share of the pipeline’s capacity, to Gulf refineries.
Originally posted by pheonix358
reply to post by Wrabbit2000
There are also intangible benefits that accrue to these practices.
Basically these Zones allow production without US taxes being applied.
As such they benefit from having their plants in a politically stable country. They are not concerned with someone destroying them or seizing them under nationalism. They gain from the protection afforded by the US Military / Police / Federal Agencies / Coast Guard, and they put nothing into these areas.
They employ Americans and yet have zero input into the taxation system that provides the infrastructure that supports these workers such as roads / schools / hospitals etc etc ad infinitum.
Pretty good if you can get these perks.
This is simply an abuse of the system but only the Multinationals can get these perks.
In Australia they mine the ore that belongs to the Australian Citizens, pay almost nothing for it and then when someone mentions that they should pay a reasonable amount they spend millions on ad campaigns to convince us that they are in it for the good of out country because they provide jobs and get the hanky out because it is all hearts and flowers. They pay almost no tax and yet make billions in profits.
If you work in a zone for an off shore company, do you have to pay income tax? I don't know your system well enough to answer this.
(Source: Full Application )
29. What are the total estimated annual FTZ-related savings associated with the proposed subzone activity you are describing in this application?
30. Provide the percentage breakdown for your total estimated FTZ savings into the following categories: Logistical/Paperwork; Inverted Tariff; Exports; Duty Deferral; and Scrap/Waste.
31. Provide any additional explanation or special features of the above savings that may be relevant to the review or implementation of zone procedures (e.g., formulas, Customs rulings, scrap as percentage of imported product).
32. Provide an estimated cost figure for operating your proposed subzone each year. (Components of your annual operating cost could include record keeping/inventory control, fees to the zone grantee, etc.)
33. A small number of states (e.g., Texas, Ohio) assess local taxes on business inventories. The Foreign-Trade Zones Act allows states to exempt merchandise from such taxes in FTZs. Does your state have an inventory tax or "personal property tax" for which collections will be affected by your proposed FTZ manufacturing authority? If yes:
There is about 0 chance, in my opinion as I haven't dug deep into tax code
So if that helps for how the tax code works
You bring up a very interesting point that I don't have an answer for though. Do they pay any corporate related taxes IF they are headquartered outside the US?
Tax code and Law is one of those few areas I simply avoid like a contagious and particularly nasty disease