Tuesday, March 13, 2007

au revoir, halliburton

So, any guesses why Halliburton has decided to "move" its CEO from Texas to the United Arab Emirates? I can think of a few reasons, none of which have to do with the excellent schools in the UAE, or the fine weather, or the ready access to Dubai's airport.

1. Taxes. Although Halliburton denies it, I bet they are looking at a way to cut their taxes big-time. Corporate tax rate in the UAE? Zero.

2. Sanctions-dodging? In the UAE, there are no laws against doing business with Iran. We know Halliburton likes Iran, don't we? Heck, they're even saying they are relocating to be closer to the exciting new markets in the Middle East.

3. Avoiding laws? Maybe Halliburton hopes that being in the UAE will give them greater protection from the long arm of American law. They already use boutique subsidiaries to avoid having to obey US law. Not that Halliburton has anything to hide, surely?

I guess Halliburton figured it's public image couldn't get much worse than it already is, so what the hell let's "move" to the UAE and save some money. The only thing Halliburton worries about is maintaining its good relations with those who hand out those no-bid contracts for the US military, its oil concessions, etc...

And already, Democrats are not amused. Look for some Republicans to pile on, too.


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