Saint Louis, MO
reply to GDougToronto
Re: One for the home team
said by GDougToronto :There's so much wrong with your comment, I don't even know where to begin.
Ironically, USA has also lost some money: Verizon is paying Uncle Sam $2.6 billion LESS due to the tax write-off gained by paying T0-Mobile. The USA is in dire financial straits, and losing $2.6 billion of tax.
4.0 billion gross (breakup fee) minus 1.4 billion net (net cost to Verizon) means 2.6 billion is being saved somewhere. Bingo! That's by paying Uncle Sam less. The tax write off. Isn't the U.S. in financial stress these days? The U.S. just got "cheated" out on 2.6 billion, didn't they?
Read this again: Verizon is paying a foreign company $2.6 billion instead of patriotically back to ourselves (as taxes that can pay for infrastructure or pay down debt, etc). Ouch.
Although this is probably preferable (pick the lesser poison) than pairing up with T-Mobile.
So a corollary of this happenings, is the taxation laws are at least a wee little bit screwy too -- needs a bit fixing there, don't most people agree?
I assume you're mixing up Verizon and ATT - no problem. But the write-off is due to ATT incurring losses due to expenditures on the merger. Every company in the United States is allowed to write-off losses. This is nothing new. It only sounds crazy because it's either:
a) such a large amount
b) you don't understand our tax system in the very least.
"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara