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Thursday, November 02, 2006

U2 tax shopping

An article over on Slate seems to suggest that U2 is engaging in a grand hypocrisy by moving their operations to Amsterdam to avoid higher taxes in Ireland. Supposedly, this is bad because Bono is simultaneously urging the Irish government to fight poverty while depriving it of extra tax revenues from U2's royalties. According to the article:

Bono, the rock star and campaigner against Third World debt, is asking the Irish government to contribute more to Africa. At the same time, he's reducing tax payments that could help fund that aid....

...relocating your business offshore in order to avoid paying taxes to the Republic of Ireland, where poverty is higher than in almost any other developed nation? Bono's hypocrisy seems even more naked when you consider that Ireland is a tax haven for artists.

I'm not convinced that it's so hypocritical. Keeping more of their money in their own hands allows them to direct it specifically where they want, instead of filtering it through the Irish government bureaucracy which would inevitably destroy some of its value in overhead before passing it on to the same programs that U2 could give to directly. Perhaps this applies more to international aid organizations than it does to domestic Irish anti-poverty groups (the best of which may be run primarily by the government, I'm not sure - anyone know?), but it's possible that the same logic applies. I can certainly see how native Irish might be a wee bit miffed, pride-wise, at being ditched by their national icon for tax reasons, but I don't think we can assume that U2's move will automatically be a net loss for whatever causes the band supports.

4 Comments:

Blogger Kelly said...

Well, I don't know about hypocritical, but it does make them seem a little less sympatethic, and a little more like the shrewd, ridiculously rich businessmen that they are.

U2 make a big fuss about their middle-class Irish roots, and their nationalistic pride. Bono likes his 'man of the people' image and makes a lot of cracks about being a ridiculously overpaid rock star who doesn't need all of his money. I don't think the Irish government will be that affected by the loss of their taxes, but the fact that they've chosen the route that is, at face value, keeping more of their millions of dollars, over investing in the Irish republic and Irish government. It's not an evil deed, but it's not a good PR move, especially for people so active in Irish politics.

Don't get me wrong: Nobody loves Bono, and Bono's charity work, more than I, but I could see how someone would be offended by this.

I did like the bit in the article where they theorize why it is that Americans weren't really fazed by this - the writer's opinion being that we're so used to rich guys keeping their money safe above all else did ring true for me.

03 November, 2006 17:05  
Blogger Hipster said...

Wait, so they expect me to go to Ireland and bring cash, but they don't want to bring cash themselves? Screw that! I'm going to New Zealand.

05 November, 2006 19:00  
Blogger Joshua said...

You're playing right into their hands, Hipster! "One Tree Hill" is about New Zealand!

05 November, 2006 23:20  
Blogger Pascals Bookie said...

I thought "One Tree Hill" was about a basketball team or some other such nonsense.

Tee Hee.

05 November, 2006 23:56  

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