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Wed Aug 31 2011 15:25:47

eBay Disputes IPS Claims of Tax Dodging

By: Ina Steiner

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eBay made the IPS list of top corporate "tax-dodgers." A new report says eBay paid its CEO John Donahoe compensation of $12.4 million in 2010 while receiving a federal income tax refund of $131 million. And he wasn't alone - of the 100 highest paid CEOs in the United States, IPS says 25 of them took home more in pay than their company paid in federal income taxes last year.

The report was published by the Institute for Policy Studies (IPS), which describes itself as working "with social movements to promote true democracy and challenge concentrated wealth, corporate influence, and military power." It estimates that major corporate CEOs took home 263 times the pay of America's average workers in 2009, and said the gap rose to 325-to-1 last year.

eBay spokesperson Johnna Hoff said the study was grossly inaccurate. "eBay Inc. paid $646 million in taxes in 2010 globally, the majority in the US. IPS has misrepresented our financial reports, and made no attempt to verify the facts with us before publishing inaccurate information."

However, eBay makes no secret of its desire to avoid paying taxes on funds sitting overseas, even when investors have asked it to bring back some of the billions of dollars so it could issue dividends to shareholders. During the 2008 financial crisis, eBay borrowed $1 billion from cash-strapped banks to fund its purchase of Bill Me Later even though it had $3 billion sitting in offshore accounts - so it wouldn't have to pay taxes on repatriated funds.

There's no subtlety in the IPS report, which states that America's CEOs "are reaping awesomely lavish rewards for the tax dodging they have their corporations do," and states, "A large majority of the 25 companies on our list reported high profits in 2010. The low IRS bills these companies faced reflected tax avoidance pure and simple."

In addition, the report states that of the 25 companies it studied, 20 also spent more on lobbying lawmakers than they paid in corporate taxes. Eighteen gave more to the political campaigns of their favorite candidates than they paid to the IRS in taxes.

The Institute for Policy Studies said eBay campaign contributions and lobbying expenditures totaled $1,927,900.

The report said much of the corporate tax avoidance of the 25 firms it studied was accomplished through tax havens, which it claimed is costing the federal treasury $100 billion a year. Of eBay, the report stated:

"As purely an online service provider, eBay has little reason to be rooted in any particular community or country. eBay has 31 subsidiaries in 9 tax haven countries. The company boasts in its 10-K report about recent rulings in Singapore and Switzerland that further lowered its tax rate in those countries, resulting in tax savings of $284 million and $300 million in 2010 and 2009, respectively."

The full report can be downloaded from the IPS website.




Comments (44) | Permalink

Readers Comments

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: Scotty

Wed Aug 31 15:57:46 2011

Let's complete the shift....move ebay corp to China.  JD can then renounce his US citizenship and start openly carrying the ''little red book''....instead of only reading it in the bathroom.  Most of these guys make me sick....they want everything the USA offers, but want to give nothing back.  I spent 9 years outside the USA working and I challenge JD to take an overseas assignment....he would not last 1 month.  Traveling is one thing....actually living somewhere else is a completely different thing.  JD and others like him are parasites on the US economy and citizenry.....and they could care less.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

This user has validated their user name. by: Ric

Wed Aug 31 17:05:43 2011

The income stated for Mr Donahoe is salary...it does not account for gifted shares of stock which he sells on a near monthly basis to supplement his bloated salary.

Mr Donahoe is grossly over paid and over compensated given the fact that his three year turn around plan is in it's fourth year and shows no sign of growing eBay's US sales.

While Mr Donahoe claimed higher GMV in his Q2 earnings report, he failed to acknowledge that most of that growth is not transactional growth. Instead, is a direct reflection of forcing sellers into including shipping costs in the selling price of items and the imposition of Final Value Fees on shipping costs for sellers who refuse to offer 'free' shipping.

The Q3 report will follow in kind as Donahoe manipulated the effective date of new fees so it was spread out over Q2 and Q3, so he could claim additional growth which in reality does not exist.

The omissions of relevant facts during quarterly reports is a trademark of CEO's like Donahoe who mislead investors in order to inflate stock prices for their own benefit.

Let the investigations begin!!!

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

This user has validated their user name. by: elpereles

Wed Aug 31 19:24:48 2011

Here is another example of government getting bankruptcy meanwhile the companies and the guys in big chairs get all the money.

The government is crazy given exceptions to the companies to create jobs, but in the end it is clear that they will not going to share money with nobody.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: u know who's fault it is

Wed Aug 31 19:46:26 2011

Its a simple case of de-regulation and refusal to close loopholes in tax codes and lax enforcement, in addition rewarding companies for sending money and jobs oversea's.

Thanks republicans!!!!!

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

This user has validated their user name. by: Ming the Merciless

Wed Aug 31 20:01:50 2011

Ric, thanks for pointing out the article only considered The Ho's salary. BTW last Friday alone, The Ho cashed in $280,000+ in stock that ebay bought for him with our fees.

I've long said that ebay -- and many other tech corporations -- is run strictly for benefit of enriching management through stock options.

Actual investors are so far down the ebay's list of priorities that they are only a few millimeters above sellers.

Does anyone honestly believe The Ho gives a damn about investors?

If investors were given dividends, then there might not be enough money left over for ebay to buy up enough stock to give to The Ho and all the other little hos in ebay's management structure.

If ebay paid their fair of US taxes, more stock buy up money disappears.

If ebay paid their fair share of taxes, The Ho would have to scale down his world domination through acquisition strategy.

Johnna Ho (the feminine nomenclature equivalent of John Ho at ebay lies. But then...see Ming's #1 Ebay Law.

The article referred to the amount of US taxes ebay paid and she refers to the total amount of taxes ebay paid around the world. B School spin and math at its best. Apples, oranges.

Most American corporations like the people who run them are little more than parasitic leeches, and many of the men and women who run them are clinical sociopaths with little regard for ethics.

Nothing short of a second American revolution is likely to change this.

We and the politicians are to blame. Republicans and DINOs have been handing over tax loop holes and deregulation for years in exchange for campaign contributions while our attention was diverted to the bread and circuses of the NFL, celebrity dancing, and all the other pap dispensed to occupy our attention.

Wall Street is not only the driver but the servant of corrupt corporate America, and it's become too big and powerful (again thanks to these same politicians) to regulate effectively with very, very, very painful payback.

Presto! Ten years later (actually 30; it began during the Reagan administration) we start to wake up and see our jobs are now in China, we see laws selectively enfoced (or not in the case of ebafia), and we see 1% of Americans like The Ho now control more than 50% of the wealth of this country.

Last Friday, pig Ho earned at least $314,000.

How much did YOU earn?

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

This user has validated their user name. by: Anonymous

Wed Aug 31 21:48:08 2011

For comparitive purposes:

"On October 18, 1931, Capone was convicted after trial and on November 24, was sentenced to eleven years in federal prison, fined $50,000 and charged $7,692 for court costs, in addition to $215,000 plus interest due on back taxes."

http://www.fbi.gov/about-us/history/famous-cases/al-cap
one


...Now
people worse than him own our government.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: Rich

Wed Aug 31 22:17:05 2011

Great article.  Here's my take. Fascism is the merger of business with government and that's what America has become. Not socialism but fascism. This is why so many of the largest businesses pay America nothing in taxes while the middle class gets killed in taxes.  So of course Ebay will pay almost no tax; Ebay is part of the Government-business club. Oh and the biggest tax of all is the inflation tax on food, fuel, lumber, steel and most everything else which is courtesy of the federal reserve for devalueing the dollar with 7 straight years of record low interest rates.  Besides the little group at the top who are robbing America blind, the only other people saving any money in America's facist state are those with fantastic jobs and those who were lucky enough or smart enough to have invested heavy in gold when president Bush introduced us to fascism back in 2000 or those who invested anytime since 2000 actually.  Fascism always fails so there will be light at the end of the long tunnel eventually.  Donahue will leave with his millions but he has no conscience so who cares about him--his type aren't human--

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: buck efay

Wed Aug 31 23:13:16 2011

Mussolini said Fasciosm is when you can't get a piece of paper in between business & government. I think we officially reached that moment around 2005 when Bush got swore in for term #2 and said the US is open for business. Then Obama got read the papers & told how things were run & went along with the program rather then getting the JFK treatment. But the Teabaggers ain't the answer, they are snuffling from the same trough & even MORE fascist. Religious fascists.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: John

Thu Sep 1 04:29:19 2011

Anonymous was spot on with their assessment. If Capone were alive today he wouldn't be a bootlegger, he'd be a ceo  We don't hear much of cosa nostra these days.....Why you ask, because illegitimate business is legitimate.  

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: TheySpeakWithForkedTounges

Thu Sep 1 06:24:11 2011

Who passed the laws that allows corporations to do this? Elected officials.
Who is cutting back on services to the people and raising peoples taxes to cover the $100 billion a year in taxes corporations weasel out of paying? Elected officials.
Who is taking enormous amounts of money from the large corporations? Elected officials (search YouTube for EBAY BUYS CONGRESS).
Who refuses to do anything about it? Elected officials.
Who taxes employees of corporation more than the corporations? Elected officials

Who elected these officials? We did. Who is the government? We are.

What we call the government are nothing more than employees of the people. We hire them, we fire them, we pay them. We are the boss. We are in charge. Time we get off our sorry *sses and start acting like it.

After all U.S. is spelled US.

---------------------------------
Side note: When you look at ebays financial reports which reads like a chines fortune cookie, it's obvious there is more going on than weaseling out of taxes. A lot more!!!

---------------------------------
WHEN EBAY DISPUTES IPS CLAIMS LISTEN CAREFULLY TO EVERY WORD THEY UTTER. THEY USE DECEPTIVE MISLEADING WORDING TO SPIN EVERYTHING. WHAT THEY APPEAR TO SAY AND WHAT THEY ARE REALLY SAYING ARE DIFFERENT.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: Duped again

Thu Sep 1 10:55:33 2011

by: u know who's fault it is
     

''Its a simple case of de-regulation and refusal to close loopholes in tax codes and lax enforcement, in addition rewarding companies for sending money and jobs oversea's.

Thanks republicans!!!!! ''



Ha Ha HA
Blame Repubicans?
That should keep you busy.
The biggest deregulation failures were Fannie and Freddie. Barney Frank insisted they were fine when mean old george bush questioned their solvency. See frank on youtube. This is one of the main reasons for the trashed economy. Christopher Dodd got special loan deals from Countrywide.

Who did Pelosie ask to head up the investigation into the financial crisis? Frank and Dodd.
How mockingly in your face can  she get.


JD'S wife is a big Obama supporter. Follow the money!
The democrats have had control of both houses since 2006.
Look at the hedge funds manipulators. Edwards, Soros. Both republicans? Buffet just dumped millions into buying Bank of America. Guess who Obama just appointed as an econonmic adviser. good old Warren, '' i pay less taxes than my secretary'' Buffet. Why does a man that rich only pay his secretary $80,000.00

Berkshire Hathaway hasn't paid taxes since 2002.
Re:The Huffington post. But what does huffpo do? it criticizes the critics for not making it clear he just didn't pay the right amount.
Ha Ha Ha.
Charlie Rangle /Tax dodger
Maxine Waters/ bank deals for her husband.

The Dems keep us distracted by blaming evil republicans. Wake up;.
It's all of them. FOLLOW THE LOBYISTS MONEY!!


eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: Paul

Thu Sep 1 11:32:50 2011

Typical of ''Greedbay'' and the HO :-(

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: Patricia This user has validated their user name.

Thu Sep 1 13:12:33 2011

Ebay beats the money out of its sellers - they lavish that money on their CEO and other upper managment....might as well complete the circle.....the use loopholes to avoid paying their fair share of taxes!  THAT'S THE NEW EBAY 2011!

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: Patricia This user has validated their user name.

Thu Sep 1 13:22:34 2011

I see we have a tea bag in here LOL.....laughable - you can't possibly defend Ebay or Donahoe to us no matter what you say.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

This user has validated their user name. by: Ed Gadfly
Web Site

Thu Sep 1 13:51:00 2011

lol. The ebaystinkblog has their spin with
COMMENTS OFF.

Not that it matters. Biggest ecommerce site around and there are hardly any comments. Can't they hire some LIEworld employees to clear away the cobwebs?  

Even the koolaid drinkers are staying clear of this one.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: Lars

Thu Sep 1 16:43:42 2011

"Nothing short of a second American revolution is likely to change this."

This statement is spot on and scary at the same time! There is no way in H E double hockey sticks that things will change without the people rolling up their sleeves and making it happen themselves. Even if that means, physically. You can vote on new politicians all day long only to learn they were eagerly waiting in line for the golden opportunity to sit and reap the rewards of our system.  

The U.S. could possibly be the most corrupt nation in the world. An election won't solve it!

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: smittyboomboom

Thu Sep 1 16:54:20 2011

I stumbled across this on the ranger up site. They certainly get the credit and got it right with their message.

...
There was a time when the people who served as our elected officials were the most brilliant and honorable members of our society. Service was exactly that � a sacrifice of time, effort, and opportunity in order to ensure the nation succeeded. Most of our founding fathers sacrificed significant wages in order to take their roles in Congress. Many actually went into debt as a result. Eight went into bankruptcy.

These men did aspire to serve, but the driving force was their belief that they had to provide their significant wisdom and intellect, backed my accomplishment in the real world, to help govern in a just and honorable manner. Power and status was not the goal. Washington left after two terms when he could have stayed on until his death if he so desired. John Adams continued to provide aid to other Presidents after his term was up, including to the man who defeated him: Thomas Jefferson.

And it wasn�t this way because they all agreed. Jefferson and Adams believed almost the opposite on many of the issues of the day: central power versus state power, engagement in external affairs or isolationism, holding slaves versus abolition � the list goes on. They had brutal, divisive, and pointed arguments on the floors of Congress. And while men have always had personal designs and goals, for the most part, these men argued with fervor for what they felt was right � what would advance the nation.

Now, with some minor exception, we have men and women who are on one team or the other, who try to create divisive issues out of thin air that they can use to split us in two as a nation, with one goal and one goal only: to get re-elected. They are not our best and brightest � they do not sacrifice. Many take a significant pay RAISE when they take office. They give themselves significant raises, exempt themselves from many laws, and ignore our wishes immediately after election. Political parties didn�t even exist at the signing of the constitution. The electoral college voted: first place was President, second place was Vice-President. Now, if an American doesn�t have party affiliation, Congress has actually passed laws to make it DIFFICULT TO EVEN RUN FOR OFFICE.

Elected officials used to serve. Now, they tend to just take.

And the only people that can do anything about that is US.

Congress is a service. Not a profession.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

This user has validated their user name. by: Ming the Merciless

Thu Sep 1 17:42:40 2011

In my humble opinion, this is one of the most important articles ever posted on ecommerce-bytes, and I don't understand why it hasn't attracted more comments.

When 1% of the our population control 50% of our wealth -- and it's getting more disproportionate every year -- the a growing percetnasge of out have less disposable income to spend.

It has already affected ebay, and sooner or later unless we as a nation can get things turned around, poverty will overtake the middle class and their buying power entirely.

The same thing will happen to Amazon, Walmart, etc. We are becoming Mexico.

Regardless of the spion, the truth is that American corporations are tax evaders courtesy of the tax breaks given primarily but niot exclusively by Republicans.

They're PROUD of being tax evaders.

Do these vultures create more jobs for Americans? No, they create jobs in China and Malayasia.

These people are thieves pure and simple and they in prison for stealing our money and our future.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: PM

Thu Sep 1 21:51:08 2011

So..The teabagger wants to come in here and kick sand in faces to distract and confuse us about the abuses foisted upon us by conservative economics, both Republican and Democratic.

It's sad that the best he could come up with is trivial accusations, long debunked BTW, about Dodds loans. Or, accuations about individual tax scofflaws that, altogether, don't amount to a hill of beans.  I can match your George Soros or Warren Buffet 100 to 1 with people like the Kochs or the Waltons or the Scaifes or any one of thousands more oligarchs who, unlike Buffett and Soros, do NOT use their wealth for anything that does not promote a political agenda aimed at further enriching themselves.

But, Mr. Teabagger above utters not a word about Republicans and Teabaggers who go to the mat every time to defend corporate welfare that dwarfs all the social safety net programs they rail against.  Not a word uttered about the deregulation of the commodity markets and the banks, pushed by Republicans and signed by Clinton (The best Republican president ever).  Not a word about deregulation of Wall St. and the securities that made this whole economic collapse possible, regardless of any contribution by Freddie and Fannie.  Not a word about a Tpublican Congress that engages in economic terrorism by bringing us to the brink of default, holding unemployment hostage to the Bush tax cuts and, lately, holding hurricane victim aid hostage to offsets.  And, lets not mention trillions of dollars for 2 useless, conservative driven, wars or the conservative economics behind the TARP bailouts.  

Is it all the Republican's fault?  No.  It's the fault of Conservatives; Republicans, DINO's and Teabaggers alike.

There is no opposition to the status quo among conservatives. If anything, they fight tooth-and-nail for more of the same.  More deregulation, more tax breaks for millionaires and billionaires, more corporate welfare and more obscene military spending.

1% of Americans own 50% of the wealth of this country and "earn" nearly 25% of all income.

Over the last 30 years, 80% of ALL income growth has accured to the top 10% of the population.

The bottom 50% of this country own 2.5% of the wealth, less than the net worth of the richest 400 individuals.

The top 20% own 80% and the bottom 20% own 0.3% of the wealth of the nation, and conservatives think that's fine and dandy.  Our wealth distribution curve is almost identical to that of Paraguay, and Teabaggers think that's hunky-dory.

This isn't about Republican and Democrat.  This is about the abject failure of 30 years of voodoo, trickle-down, supply side economics, as foisted upon this nation by conservatives, regardless of their party affiliation.

eBay Disputes IPS Claims of Tax Dodging   eBay Disputes IPS Claims of Tax Dodging

by: PM

Thu Sep 1 22:21:35 2011

One more thing, Mr. Teabagger, before I forget:

Lest you think I am engaging in unfair hyperbole by laying this countries economic woes firmly at the feet of voodoo practicing supply siders, I'd like to suggest you do a little research.

Go to a website with economic graphs.  I won't recommend any specific sites, because you would simply claim they were liberally biased, but I'd suggest non-partisan offices such as the CBO.

Find a graph of just about any metric you care to peruse.  Try inflation ajusted median income.  Try the U.S. ranking among industrialized nations in some important measure of, standard of living, economic or societal health such as exports, individual debt load, college costs as a % of median income, incarceration rates, educational attainment, teenage pregnancies, divorces, etc.  You can find graphs of any of these metrics, stretching back at least 50 years.

If you really search hard, you can also find data regarding upward social mobility, life expectancy and self-reported happiness. Those trends are similar.

Choose your metric and follow the graph line back until you reach the point where you see it changing, or declining, in other words, deteriorating.  Then, cast your eyes to the column that denotes the year.

Notice anything?  Yes, you do.  You notice that the year falls in the range of approximately 1981-1985.

Now, remember what happened in 1980?  What "revolution" began that year?  Here's a hint: It starts with an "R" and was named after a befuddled old man, often referred to, by those close to him, as an "amiable dunce".

This "amiable dunce" also had a sidekick who coined the phrase "voodoo economics" which, as it turned out, was quite prescient since it was eventually also described that way by its architect, David Stockman and its chief proponent, Alan Greenspan.

Too bad the Republicans and Teabaggers never got the memo.

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