WalMart has a Secret Global Operation

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In 2013, WalMart announced an ‘All American’ objective….yet there are other truths.

Wal-Mart Stores Inc will buy an additional $50 billion in U.S.-made goods over the next decade in areas like sporting goods and high-end appliances in what the world’s largest retailer called a bid to help boost the U.S. economy. Wal-Mart, the largest private employer in the United States, also said on Tuesday it plans to hire 100,000 newly discharged veterans over the next five years, at a time when the U.S. unemployment rate is at 7.8 percent.

The moves are likely to receive a cool reception from critics, who claim Wal-Mart does not pay its workers enough and slam the retailer for selling too many goods made in lower-cost countries like China. The company is also under pressure over its sourcing practices, particularly after a deadly fire at a Bangladesh factory that made Wal-Mart clothes.

Then Walmart went all in with China.

But WalMart is fully offshore hiding monies for tax purposes…what would Barack Obama say?

Wal-Mart Has $76 Billion in Undisclosed Overseas Tax Havens

Wal-Mart Stores Inc. owns more than $76 billion of assets through a web of units in offshore tax havens around the world, though you wouldn’t know it from reading the giant retailer’s annual report. A new study has found Wal-Mart has at least 78 offshore subsidiaries and branches, more than 30 created since 2009 and none mentioned in U.S. securities filings. Overseas operations have helped the company cut more than $3.5 billion off its income tax bills in the past six years, its annual reports show. The study, researched by the United Food & Commercial Workers International Union and published Wednesday in a report by Americans for Tax Fairness, found 90 percent of Wal-Mart’s overseas assets are owned by subsidiaries in Luxembourg and the Netherlands, two of the most popular corporate tax havens.

Units in Luxembourg — where the company has no stores — reported $1.3 billion in profits between 2010 and 2013 and paid tax at a rate of less than 1 percent, according to the report. All of Wal-Mart’s roughly 3,500 stores in China, Central America, the U.K., Brazil, Japan, South Africa and Chile appear to be owned through units in tax havens such as the British Virgin Islands, Curacao and Luxembourg, according to the report from the advocacy group. The union conducted its research using publicly available documents filed in various countries by Wal-Mart and its subsidiaries. Randy Hargrove, a Wal-Mart spokesman, called the report incomplete and “designed to mislead” by its union authors. He said the company has “processes in place to comply with applicable SEC and IRS rules, as well as the tax laws of each country where we operate.”

Mailbox Subsidiaries

The union behind the study backs the Organization United for Respect at Wal-Mart, a group that campaigns for wage increases and more predictable schedules. Wal-Mart has historically resisted unions and discourages employees from joining them. The report comes a week after the Group of Twenty nations unveiled its latest effort to combat multinational corporate tax avoidance. The body wants companies to disclose to regulators where they book profits, employees and sales, so tax authorities can be aware of discrepancies between where corporations report income and where they have operations. Hargrove, the Wal-Mart spokesman, pointed to guidance issued by the SEC that permits companies to avoid disclosure of subsidiaries with significant “intercompany transactions.” He said Wal-Mart’s tax savings overseas was driven by lower rates in markets including Canada and the U.K.

‘Continuing Evidence’

Companies such as Google Inc., Apple Inc. and Starbucks Corp. have come under fire for avoiding billions of dollars of income taxes by attributing profits to mailbox subsidiaries in low-tax jurisdictions like Bermuda. The Group of Twenty has directed the Organization for Economic Cooperation and Development to develop plans to crack down on such strategies. The new Wal-Mart disclosures could expand the scope of international tax reform, which has often focused on technology companies that move profits offshore by assigning valuable patent rights to mailbox units. Bloomberg News reported last year that Inditex SA, the parent of Zara, the world’s biggest fashion retailer, cut its taxes by shifting billions of dollars of profits to a tiny Dutch unit. “This report is continuing evidence that everybody has been engaging in cross-border tax avoidance,” said Stephen E. Shay, a professor at Harvard Law School and former deputy assistant secretary for international tax affairs for the Obama Treasury Department.

Hybrid-Loan Strategy

Nearly a decade ago, Wal-Mart ran into trouble over strategies to avoid U.S. state income taxes. It used a real estate investment trust to effectively pay rent to itself, generating big tax deductions, even though the rent payments never left the company. At least six states changed their tax laws after publicity about the tactics. Since then, Wal-Mart has stepped up its use of offshore tax havens. It has created 20 new subsidiaries in Luxembourg alone since 2009, according to the report. Wal-Mart employs a popular legal strategy in that country called a hybrid loan. It permits companies’ offshore units to take tax deductions for interest paid — typically on paper only — to their parents in the U.S. The parent, however, doesn’t include that interest as taxable income in the U.S. The OECD has called for an end to the tax benefits of such loans. Luxembourg generated headlines last year after the International Consortium of Investigative Journalists revealed its role in cutting the tax bills of hundreds of multinationals.

Union Funding

U.S. companies owe tax at a rate of 35 percent but can defer indefinitely the income taxes on profits attributed to overseas units. In 2011, Wal-Mart’s then-chief executive officer, Mike Duke, called in testimony before Congress for a system that would exempt from U.S. income tax the earnings that multinationals generate overseas. Wal-Mart’s accumulated offshore earnings have doubled to $23.3 billion in 2015 from $10.7 billion 2008. The company operates about 6,300 stores in 27 countries outside the U.S. and last fiscal year reported 28 percent of its sales abroad, or about $137 billion. Wal-Mart paid $6.2 billion in U.S. income tax last year, Hargrove, the company spokesman, said, or “nearly 2 percent of all corporate income tax collected by the U.S. Treasury.” Americans for Tax Fairness called on the European Union to open investigations into whether the Luxembourg tax benefits constitute illegal state aid. The EU has issued preliminary findings that this was indeed the case with companies using similar strategies in various countries, including as Starbucks in the Netherlands, Apple in Ireland and Fiat SpA in Luxembourg. The tax group receives most of its funding from foundations, including the Ford Foundation, Open Society Foundations, Bauman Foundations and Stoneman Family Foundation. It’s also funded by public-sector unions, including the American Federation of State, County and Municipal Employees and the National Education Association.

Obama and DHS Fully Compromised our Security

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Getting into America just got easier….

Easier? Yes and while no one is talking about it but I got a tip from an insider. Did you hear the announcement by Jeh Johnson? This program already exists.

It might be a lot easier – and faster – for international travelers to fly into the United States soon.

The U.S. Department of Homeland Security said Friday it will seek approval to put pre-clearance centers at 10 airports in nine foreign countries.

If negotiations are successful, those centers will allow travelers to go through U.S. Customs and Border Protection clearance before they get on their airplane headed to the United States. Once landed, they would not have to be rescreened.

Here’s what Homeland Security Secretary Jeh Johnson said in the DHS announcement:

“A significant homeland security priority of mine is building more preclearance capacity at airports overseas. We have this now in 15 airports. I am pleased that we are seeking negotiations with 10 new airports in nine countries.

“I want to take every opportunity we have to push our homeland security out beyond our borders so that we are not defending the homeland from the one-yard line. Preclearance is a win-win for the traveling public. It provides aviation and homeland security, and it reduces wait times upon arrival at the busiest U.S. airports.”

The U.S. will enter talks with officials in Belgium, the Netherlands, Norway, Spain, Sweden, Turkey and the United Kingdom in Europe, as well as Japan and the Dominican Republic.

The 10 airports would be Brussels Airport, Belgium; Punta Cana Airport, Dominican Republic; Narita International Airport, Japan; Amsterdam Airport Schipol, Netherlands; Oslo Airport, Norway; Madrid-Barajas Airport, Spain; Stockholm Arlanda Airport, Sweden; Istanbul Ataturk Airport, Turkey; and London Heathrow Airport and Manchester Airport in the United Kingdom.

“These countries represent some of the busiest last points of departure to the United States – in 2014, nearly 20 million passengers traveled from these ten airports to the U.S.,” DHS said.

For travelers to Dallas/Fort Worth International Airport, the pre-clearance would be available on flights from London Heathrow (American Airlines and British Airways); Amsterdam (KLM Royal Dutch Airlines); Tokyo Narita (American); Madrid-Barajas (American); and Punta Cana (Sun Country Airlines).

Officials from trade group Airlines for American and from American and JetBlue Airways quickly praised the DHS effort.

“U.S. airlines drive $1.5 trillion in economic activity, and by improving the passenger experience for visitors or those returning to the United States, while improving security, we can build on that,” A4A President and chief executive Nick Calio said. “The addition of these pre-clearance airports will help increase safety and security while improving the passenger experience with shorter wait times and quicker connections on arrival in the U.S.”

“Expanding air preclearance is a tremendous step forward for improving the overall travel experience for our customers and welcoming more visitors to the United States,” AA chief operating officer Robert Isom said. “Preclearance eases the congestion at our U.S. gateway airports and ensures our customers get to their destinations faster.”

In addition to the three airports served by American from its D/FW hub, the pre-clearance centers would go to four other airports served by American out of other U.S. airports – Manchester, Amsterdam, Punta Cana and Brussels.

JetBlue passengers would benefit from the Punta Cana pre-clearance center.

“We believe that in addition to the need for an increase in CBP staffing at key U.S. gateway airports, more preclearance facilities like the ones being proposed around the globe are an important tool to enhance our nation’s security and reduce the number of travelers clearing Customs stateside — and that ultimately reduces wait times for travelers on all airlines,” JetBlue president and CEO Robin Hayes said.

United also thanked DHS for the proposal.

“We have worked closely with U.S. Customs and Border Protection and support developments that provide more convenience for our customers,” the carrier said in a statement. “We thank Secretary Johnson and his team at the Department of Homeland Security and CBP for their engagement with United and the airline industry, and we look forward to partnering with them on this initiative to facilitate travel and reduce wait times.”

U.S. Travel Association president Roger Dow issued this statement:

“When the experience for the international traveler improves, the U.S. economy improves, and again this administration deserves praise for pressing ahead with innovative policies that simultaneously bolster national security and streamline the customs entry process.

“Customs preclearance is a program that has proven itself effective, and extending it to these key travel markets will undoubtedly boost visitation. As a bonus, adding preclearance facilities will further relieve pressure on the customs entry process here on our shores, improving the system generally.

“Evolving policies such as these are a big reason why we surpassed a record 74 million international visitors to the U.S. last year, and are well on pace to reach 100 million visitors annually by 2021. With overseas visitors spending an average of $4,300 per person, per trip, that’s just good economic sense.”

Customs and Border Protection currently staffs 15 centers in six countries: Dublin and Shannon in Ireland; Aruba; Freeport and Nassau in the Bahamas; Bermuda; Calgary, Toronto, Edmonton, Halifax, Montreal, Ottawa, Vancouver and Winnipeg in Canada; and Abu Dhabi in the United Arab Emirates.

This is a ‘preclearance system’.  Please read the full description here.

In 2013, there was a Customs and Border Patrol hearing on this matter in the House of Representatives. Essentially, we cant control security within our borders now we are extending them globally and relying on foreign governments and security services? That did not work out at all in Benghazi. Here is the testimony and it is a must read.

 

 

More Govt Fleecing in the Billions

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Not only is Obamacare as a law but with implementation and application a failure, but money associated with it, has become a financial Armageddon. Those who have recently had any medical experience with insurance and coverage have determined the affordability is way beyond what was told and sold to us. Now, add a double whammy to the problem, more taxpayer dollars lost.

Remember how much the cost of the Obamcare website cost to launch?

The website Digital Trends reported on Thursday that, based on government documents displaying contracts awarded to CGI Federal Inc., the Canadian-based company which in 2011 won a $93 million contract to build the federal healthcare exchange, the cost of HealthCare.gov was about at $634 million. Remember when the White House said and it is still on their website?

Q: Will my premiums / costs go up because of health reform?

A: No.

According to the independent and non-partisan Congressional Budget Office, people who get coverage through their employer today will likely see lower premiums.

Reform will lower premiums by reducing administrative costs, increasing competition between insurance companies and creating a larger pool of insured Americans.

And remember, the cost of doing nothing is high. In ten years, health care spending for each employee at an average big company will be $28,530. Then remember when the White House backtracked on the cost of Obamacare was going to go up? Check that here.

It just got much worse.

 

CMS’s internal controls (i.e., processes in place to prevent or detect any possible substantial errors) did not effectively ensure the accuracy of nearly $2.8 billion in aggregate financial assistance payments made to insurance companies under the Affordable Care Act during the first 4 months that these payments were made.

 

Feds Can’t Verify $2.8 Billion in Obamacare Subsidies

Inspector General report is found here.

CMS does not know if subsidies went to ‘confirmed enrollees, in the correct amounts’

The federal government cannot verify nearly $3 billion in subsidies distributed through Obamacare, putting significant taxpayer funding “at risk,” according to a new audit report.

The Department of Health and Human Services (HHS) Office of Inspector General (OIG) released an audit Tuesday finding that the agency did not have an internal system to ensure that subsidies went to the right enrollees, or in the correct amounts.

“[The Centers for Medicare and Medicaid Services] CMS’s internal controls did not effectively ensure the accuracy of nearly $2.8 billion in aggregate financial assistance payments made to insurance companies under the Affordable Care Act during the first four months that these payments were made,” the OIG said.

“CMS’s system of internal controls could not ensure that CMS made correct financial assistance payments,” they said.

The OIG reviewed subsidies paid to insurance companies between January and April 2014. The audit found that CMS did not have a process to “prevent or detect any possible substantial errors” in subsidy payments.

The OIG said the agency did not have a system to “ensure that financial assistance payments were made on behalf of confirmed enrollees and in the correct amounts.”

In addition, CMS relied too heavily on data from health insurance companies and had no system for state-based exchanges to “submit enrollee eligibility data for financial assistance payments.”

The government does “not plan to perform a timely reconciliation” of the $2.8 billion in subsidies.

The audit was released as the country awaits a Supreme Court ruling that could make all federal subsidies invalid, since the majority of states did not set up their own health insurance exchange.

Eligible individuals enrolled in Obamacare can receive different types of subsidies, including advance premium tax credits (APTCs) and advance cost-sharing reductions (CSR), which can be used towards premiums or out-of-pocket health care costs.

According to the OIG, the government still does not have a complete system for approving subsidies distributed though Obamacare. CMS used an “interim process” to distribute subsidies for 2014, and is planning a “permanent process” to be finished by late 2015. The final system is supposed to approve enrollment and payment data “on an enrollee-by-enrollee basis.”

“Without effective internal controls for ensuring that advance CSR payments are reconciled in a timely manner, a significant amount of Federal funds are at risk,” the OIG said.

The report noted that multiple agencies within CMS oversee subsidy payments, including the Center for Consumer Information and Insurance Oversight (CCIIO), the Office of Financial Management (OFM), the Office of the Actuary (OACT), and the Office of Information Systems (OIS).

In response to the audit, CMS said they issued a regulation to change their accounting methods.“CMS takes the stewardship of tax dollars seriously and implemented a series of payment and process controls to assist in making manual financial assistance payments accurately to issuers,” they said.

 

The White House ‘Not Alone’ Task Force

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There is not one thing that this White House touches, concocts or manages that there is not some devastating collateral damage.

Do you ever wonder why there is so much trouble on college campuses and why there is so much talk about sex and more sex? Enter the ‘Not Alone’ Task Force created in 2014. The implications of this mess stretches to an estimated 55 campuses.

The White House is pushing colleges to survey their students about sex assault and other “campus climate” issues, part of a rape-prevention campaign that will include a Web site to support survivors and track enforcement, a public service announcement from President Obama, and recommendations for how to handle reported assaults. The Education Department’s Office for Civil Rights issued a finding that Tufts University in Massachusetts had violated federal anti-discrimination law in its handling of sexual assault and harassment complaints. Tufts said it was “surprised and disappointed” that the federal office found it to be out of compliance with the law known as Title IX. “Tufts University is deeply committed to the safety and well-being of our students, faculty and staff,” the school said.

The task force, formed in January, includes Attorney General Eric H. Holder Jr., Education Secretary Arne Duncan and other government officials.

The 23 page report is found here. The Task Force is headed by Valerie Jarrett but Joe Biden has been the point person. There were 27 listening sessions of which 12 were webinars and 15 were face to face.

Among the report’s recommendations:

●Colleges should learn about what’s happening on campus through systematic surveys.

“When done right, these surveys can gauge the prevalence of sexual assault on campus, test students’ attitudes and awareness about the issue, and provide schools with an invaluable tool for crafting solutions,” the report said. The task force said the administration would consider requiring colleges to conduct such surveys in 2016.

●Colleges should promote “bystander intervention,” in others words, getting witnesses to step in when misconduct arises. “It’s up to all of us to put an end to sexual assault,” Obama said in a public service announcement. “And that starts with you.” The PSA also features Biden and actors Steve Carrell, Daniel Craig, Seth Meyers, Benicio Del Toro and Dulé Hill.

●Colleges should identify trained victim advocates who can provide emergency and ongoing support. The administration also released a sample reporting and confidentiality protocol, as well as a “checklist” for an effective sexual misconduct policy.

The report said the government would make enforcement data and other information about sex assault available through a Web site called NotAlone.gov. It said the site would collect in one easy-to-read place information that students have often struggled to find. The site will aim to “give students a clear explanation of their rights,” the report said, as well as “a simple description of how to file a complaint” with federal authorities. “It will help students wade through often complicated legal definitions and concepts, and point them toward people who can give them confidential advice — and those who can’t,” the report said.

Just in case you need to understand the collateral damage, there was an alleged rape case at Amherst.

The truth is a girl raped a drunk male student, who later hired a lawyer only to find the text messages proved the male student was not given any due process stemming from his 2013 expulsion. Amherst is refusing to this day…due process. Read the details here. Amherst feels fully protected by the White House Task Force and likely will get additional legal protection not only from the Eric Holder Justice Department but now the Loretta Lynch Justice Department.

Listen and Read How Wrong Obama is on Iran

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Even the Russians did not lie as badly as the Iranians have and Kerry at the behest of the White House is ignoring the historical lies.

Sen. Bob Corker (R-Tenn.) has sent a blistering letter to President Obama denouncing reported Iran concessions. It reads:

Dear Mr. President:

It is breathtaking to see how far from your original goals and statements the P5+1 have come during negotiations with Iran. Under your leadership, six of the world’s most important nations have allowed an isolated country with roguish policies to move from having its nuclear program dismantled to having its nuclear proliferation managed. Negotiators have moved from a 20-year agreement to what is in essence a 10-year agreement that allows Iran to simultaneously continue development of an advanced ballistic missile program and research and development of advanced centrifuges. This also will allow Iran’s economy to be restored with billions of dollars returned to its coffers, a development that administration officials concede will be used at some level to export terrorism in the region.

I am alarmed by recent reports that your team may be considering allowing the deal to erode even further. Only you and those at the table know whether there is any truth to these allegations, and I hope reports indicating potential concessions on inspections and on the full disclosure of Iran’s possible military dimensions (PMDs) are inaccurate.

Regarding inspections, surely your administration and those involved in the negotiations will adhere to an “anytime, anywhere” standard. No bureaucratic committees. No moving the ball. No sites off limits.

You have publicly acknowledged Iran’s long history of covert nuclear activity.  We all are aware of the importance of having a full understanding of Iran’s nuclear program, including PMDs of those activities as part of any agreement. Yet, recently I have heard of a potential cumbersome process where the International Atomic Energy Agency (IAEA), with no confirmation from Iran, will make PMD determinations about Iran’s nuclear program in order to protect Iran’s national pride, meaning Iran will not have to publicly admit to these activities. Today, the IAEA cannot get access to information Iran agreed to share pursuant to a 2013 agreement. By not requiring Iran to explicitly disclose their previous weaponization efforts on the front end of any final agreement, we will likely never know, in a timely fashion, the full extent of Iranian capabilities.

I understand the dynamics that can develop when a group believes they are close to a deal and how your aides may view this as a major legacy accomplishment. However, as you know, the stakes here are incredibly high and the security implications of these negotiations are difficult to overstate. As your team continues their work, if Iran tries to cross these few remaining red lines, I would urge you to please pause and consider rethinking the entire approach. Walking away from a bad deal at this point would take courage, but it would be the best thing for the United States, the region and the world.

One hopes that Corker’s colleagues are paying attention and that they are ready to prevent a catastrophic deal.