[caption id=”attachment_97276″ align=”aligncenter” width=”3252″] (AP Photo/Jon Elswick)
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President Barack Obama might be using strong language to condemn “corporate deserters” who officially locate their headquarters outside of the U.S. to lower their tax bills, but his actions certainly suggest otherwise.
Obama gave a $100 million contract over to Accenture to make improvements to the disastrous Healthcare.gov. But the company is currently incorporated in Ireland, The Hill reports. Accenture has also previously located its headquarters in both Switzerland and Bermuda, noted tax havens, and has frequently earned the ire of Democratic lawmakers who call the company a “tax dodger.”
Accenture received the HealthCare.gov contract before Obama and Democrats began targeting the increasing number of corporations that have looked to inversions to lower their tax bill by moving their legal address abroad, The Hill reported. This rhetoric has been a big part of the Democrat’s midterm election messaging.
Accenture officials told The Hill that they don’t fall under this category because it was never organized in the U.S.
“Accenture has never been a U.S.-based or U.S.-operated organization and has never operated under a U.S. parent corporation,” James McAvoy, a company spokesman, told The Hill in a statement. “Accenture is, and always has been, a global organization.”
But giving the contract for his legacy Obamacare program to a “foreign” company certainly doesn’t send the same strong message Obama has been trying to vocalize.
This isn’t the first time a company Obama has supported or has connections to has undermined his new focus on these “unpatriotic” tax dodgers.
As part of the bailout of the auto industry in 2009, Obama’s Treasury Department spent $1.7 billion to get a bankrupt Michigan parts-maker back on its feet, Bloomberg reported earlier this summer. But though Delphi Automotive Plc is run physically from a Detroit suburb, the business has its headquarters in England on paper, reducing the company’s U.S. tax bill by as much as $110 million a year.
Billionaire Warren Buffett, a huge ally for Obama on tax issues, weakened the administration this week by helping to fund Burger King’s purchase of Tim Hortons, which would allow the company to move its headquarters to Canada.
It’s just another case of needing to put your money where your mouth is.