October 8, 2012
-- by Dave Johnson
Sensata is a Bain-owned company that is closing a factory in in Freeport, Il to move the jobs to China. The workers have set up a camp they call "Bainport" and workers and supporters are trying to block the Bain trucks that are moving equipment out to ship to China right now. In breaking news there were arrests made today.
Last week in the post Blocking Bain Trucks To Save Jobs In Freeport -- This Is An IMPORTANT Story I wrote about the Sensata workers in Freeport who have set up a camp they call Bainport, and are asking Mitt Romney to show that he means what he is saying about cracking down on China by coming to Freeport and asking his former company not to send these jobs to China.
The Sensata workers camping at Bainport as asking Mitt Romney to come help them keep their jobs. Romney insists that he has nothing to do with Bain Capital anymore (his tax returns showed that he gets more than $400,000 a week from Bain investments).
Helping the Sensata workers would show that he means it when he says he has nothing to do with the things Bain does now, and that he will do something about the jobs being sent to China. What better opportunity to prove both than to show up and confront Bain for sending these jobs to China!
Romney, Bain And The Outsourcing Strategy
Mitt Romney and Bain "pioneered" outsourcing strategies. They invested in companies set up to help other companies send jobs to China, and they especially used offshoring in their strategies to avoid paying the taxes that enable We, the People to have good schools, roads, courts etc. The NY Times story, Offshore Tactics Helped Increase Romneys’ Wealth explained,
Some of the offshore entities enabled Bain-owned companies to sidestep certain taxes, increasing returns for Mr. Romney and other investors. Others helped Bain attract foreign investors and nonprofit institutions by insulating them from taxes, again augmenting Mr. Romney’s bottom line, since he shared in management fees based on the size of each Bain fund.
In Unraveling The Romney/Bain Tax Story I explained how it works,
The complicated story of how the 1%ers and their corporations evade democracy's taxes is the story of our crumbling schools and infrastructure and the flow of all the gains of our economy to a very few at the top. This tax evasion is also part of the story of our deficits and debt. The tax evasion is "legal" -- because the tax evaders pay the people who write the tax laws. And even as their tax evasion adds to our budget deficits and debt, the 1%ers are insisting we close the deficit by cutting Social Security, Medicare and "safety-net" programs!
[. . .] The American-based entities can buy American companies without incurring "foreign-based" obligations. Then the foreign-based entities can avoid the taxes that the American-based buyers of companies would have to pay. And the foreign-based investors can be in the foreign-based parts of the company, avoiding US tax obligations. Also American entities like pension funds can avoid US taxes they would otherwise have to pay.
To put it another way, the same company can pretend it is US-based when that is what it needs to be, and foreign-based when that is what it needs to be.
Mitt Romney is wealthy because he engaged in strategies to lay people off, sending their jobs to China and pocketing the wage differential for himself. Then his companies would force people to take wage cuts or risk losing their jobs, too, and pocking the wage difference for himself. The profits from these "enterprises" were manipulated in ways that enabled him to pay very little in taxes, so the rest of us end up not only with layoffs and lower wages, but bad schools, crumbling infrastructure and government debt.
Then later, Mitt Romney can claim that We the People are the cause of the resulting government debt and that we need "austerity" -- less for We, the People in order to keep taxes low.
Today community members supporting the Sensata workers were arrested for trying to block Bain trucks from sending the factory's equipment to China.
Visit the Bainport blog for pictures and details.
Posted by Dave Johnson at October 8, 2012 11:10 AM
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