There's a certain logic to Captain Morgan being subsidized by an administration that spends like drunken sailors
We can’t explain this one and we doubt that President Obama can, either.
He just agreed to pay a British company nearly $3 billion so it can move from Puerto Rico to the Virgin Islands.
London-based Diageo PLC will receive tax credits and other benefits worth $2.7 billion over 30 years, including the entire $165-million cost of building a state-of-the-art distillery on the island of St. Croix in the Virgin Islands, a U.S. territory.
Virgin Islands officials say the arrangement complies with the letter and spirit of tax law and will help the islands’ sagging economy.
Captain Morgan is now produced in another U.S. territory, Puerto Rico, and critics say the Virgin Islands’ subsidy for the new distillery there, along with the other benefits, are so generous that they practically guarantees a profit on every gallon of rum produced there by Diageo, the biggest distilled spirits maker in the world.
“The U.S. taxpayer is basically being asked to line the pockets of the world’s largest liquor producer,” says Steve Ellis, the president of Taxpayers for Common Sense, a nonpartisan watchdog organization.
The Lord Obama giveth to one U.S. territory and taketh from another.
Puerto Rico loses 300 jobs in this move, but that’s just the tip of the iceberg. It also uses 90% of the taxes it derives from rum on public welfare.
Unfortunately, we know the way this administration thinks. So we’re completely prepared for the announcement that they’re going to spend another billion or two moving all of Puerto Rico’s unemployed to the Virgin Islands.
Would you be surprised?
Source: Chicago Tribune via HotAir.com
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I would normally write a really witty comment, but I am so drunk right now that I can barely see,.
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Yo Ho, Yo Ho! a pirate’s life for me…
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I wonder is Capt. Morgan is one of the favorite drinks at the Oh So Awesome Cocktail Parties the Obamas like to throw each week?
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Outrageous!!!!
But maybe we should know all the facts. Especially how this deal began over a year ago during the Bush Admin and covered under the TARP program that Bush and Hank Paulson pushed.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=amp5wXx35fkc