Information Not Available From Google

The U.S. Government would like Google's branch in Dublin to take a good, long look at its current tax situation because things...just...might..be...changing...in Ireland.

Apparently, when Mr. Obama chatted with Mr. Sarkozy about bombing Libya, something must have come up about an all-EU tax rate which will be higher than Ireland's current 12.5%.

So, hiya Google. What are you thinking there, if Ireland is forced to accept a higher level and you'll be paying more? Wouldn't it just be easier to pay that 35% tax rate in the United States and you could stop shipping profits overseas?

It's estimated that Google has saved itself around $3 billion (with a b) over the course of the past three years by using tax shelters, as do so many other large firms. At the same time, Ireland profited. 12.5% is far better than nothing, even if the 35% advertised rate sounds as if it should be a lucrative siphon of corporate profits.

When people feel over-taxed, they find ways to get around the rules. Not as much comes in as might be realized if corporations were required to submit 15% or 18% or some level that felt more equitable.

The Internal Revenue Service couldn't very well use Google to find out about Google's internal affairs. And whatever Google said to them in reply to their inquiry has not been released to the general public.

Odds are, Google told the IRS to feck off. There's nothing illegal about utilizing tax shelters, and as long as corporations can realize savings in Ireland, that's where the profits will go.

If Congress were populated by the wise, they might figure out that lowering the tax rate could result in more tax income, as corporations weigh the costs of maintaining overseas operations that serve only as shadow offices for tax purposes.

At some point, it's cheaper to pay the taxes than it is to avoid them, and that should be the goal.

For now, there is big talk and subtle intimidation applied to the multinationals, while Ireland fights like a demon to hold down the corporate tax rate in the face of EU pressure to raise it up.

There's a reason for Ireland's stance. Maybe someone in Washington, D.C., could Google it.