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The Arms Trade is Big Business — Global Issues

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The Arms Trade is Big Business — Global Issues


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  • by Anup Shah
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The world spends some $1,000 billion annually on the military. How is this so?

On this page:

  1. World Military Spending Out Does Anything Else
  2. Arms sales figures
    1. Global Arms Sales By Supplier Nations
    2. Global Arms Sales Trends 2004-2011
    3. Developing nations are top recipients
    4. What is sold?
  3. As world trade globalizes, so does the trade in arms
    1. Hidden Corporate Welfare?
    2. Arms Trade Post September 11, 2001
  4. It does not seem to matter who arms are sold to
    1. The arms trade is corrupt
  5. Geopolitical and Economic Agendas
  6. Government Military Budgets and Spending

World Military Spending Out Does Anything Else

As detailed further on the next page on military expenditure, world military spending has now reached one trillion dollars, close to Cold War levels.

As summarized from the Military Balance, 2000/2001, by the International Institute for Strategic Studies (October 2001), for the larger arms-purchasing nations each year:

  • Arms procurement is normally 20-30% of their military budgets
  • The main portion is usually on operations, maintenance and personnel
  • Some 40 to 50 billion dollars are in actual deliveries, (that is, the delivery of sales, which can be many years after the initial contract is signed)
  • Each year, around 30-35 billion dollars are made in actual sales (agreements, or signing of contracts).

In more recent years, annual sales of arms have risen to around $50-60 billion although the global financial crisis is slowly beginning to be felt in arms sales too.

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Arms sales figures

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As world trade globalizes, so does the trade in arms

Control Arms is a campaign jointly run by Amnesty International, International Action Network on Small Arms (IANSA) and Oxfam. In a detailed report titled, Shattered Lives, they highlight that arms are fueling poverty and suffering, and is also out of control. In addition,

The lack of arms controls allows some to profit from the misery of others.

  • While international attention is focused on the need to control weapons of mass destruction, the trade in conventional weapons continues to operate in a legal and moral vacuum.
  • More and more countries are starting to produce small arms, many with little ability or will to regulate their use.
  • Permanent UN Security Council members—the USA, UK, France, Russia, and China—dominate the world trade in arms.
  • Most national arms controls are riddled with loopholes or barely enforced.
  • Key weaknesses are lax controls on the brokering, licensed production, and ‘end use’ of arms.
  • Arms get into the wrong hands through weak controls on firearm ownership, weapons management, and misuse by authorised users of weapons.
The Arms Bazaar, Shattered Lives, Chapter 4, p. 54, Control Arms Campaign, October 2003

The top five countries profiting from the arms trade are the five permanent members of the United Nations Security Council: the USA, UK, France, Russia, and China.

From 1998 to 2001, the USA, the UK, and France earned more income from arms sales to developing countries than they gave in aid.

The arms industry is unlike any other. It operates without regulation. It suffers from widespread corruption and bribes. And it makes its profits on the back of machines designed to kill and maim human beings.

So who profits most from this murderous trade? The five permanent members of the UN Security Council—the USA, UK, France, Russia, and China. Together, they are responsible for eighty eight per cent of reported conventional arms exports.

We can’t have it both ways. We can’t be both the world’s leading champion of peace and the world’s leading supplier of arms. Former US President Jimmy Carter, presidential campaign, 1976

The Arms Industry, Control Arms Campaign, October 2003

In order to make up for a lack of sales from domestic and traditional markets for military equipment, newer markets are being created or sought after. This is vital for the arms corporations and contractors in order to stay afloat.

Respect for human rights is often overlooked as arms are sold to known human rights violators.

Heavy militarization of a region increases the risk of oppression on local people. Consequently reactions and uprisings from those oppressed may also be violent. The Middle East is a current example, while Latin America is an example from previous decades, where in both cases, democracies or popular regimes have (or had) been overthrown with foreign assistance, and replaced with corrupt dictators or monarchs. Oppression (often violent) and authoritarianism rule has resulted. Sometimes this also itself results in terrorist reactions that lash out at other innocent people.

A deeper cycle of violence results. The arms trade may not always be a root cause, because there are often various geopolitical interests etc. However, the sale of arms can be a significant contributor to problems because of the enormous impact of the weapons involved. Furthermore, some oppressive regimes are only too willing purchase more arms under the pretext of their own war against terrorism.

In quoting a major international body, six basic points harshly criticizing the practices and impacts of the arms industry are listed below, by J.W. Smith:

  1. That the armament firms have been active in fomenting war scares and in persuading their countries to adopt warlike policies and to increase their armaments.
  2. That armament firms have attempted to bribe government officials, both at home and abroad.
  3. That armament firms have disseminated false reports concerning the military and naval programs of
    various countries, in order to stimulate armament expenditure.
  4. That armament firms have sought to influence public opinion through the control of newspapers in their own and foreign countries.
  5. That armament firms have organized international armament rings through which the armament race has been accentuated by playing off one country against another.
  6. That armament firms have organized international armament trusts which have increased the price of armaments sold to governments.
J.W. Smith, The World’s Wasted Wealth II, (Institute for Economic Democracy, 1994), p. 224

But, this was not of the arms industry of today. Smith was quoting the League of Nations after World War I, when Stung by the horrors of World War I, world leaders realized that arms merchants had a hand in creating both the climate of fear and the resulting disaster itself.. And unfortunately, it also summarizes some of the problems of today, too. Justification for arms and creating the market for arms expenditure is not a new concept. The call to war and fear-mongering is an old tradition.

This rush to globalize arms production and sales ignores the grave humanitarian and strategic consequences of global weapons proliferation. Already, profit motives in the military industry have resulted in arms export decisions that contravene such U.S. foreign policy goals as preserving stability and promoting human rights and democracy.

Globalized Weaponry, Foreign Policy In Focus, Volume 5, Number 16, June 2000

Hidden Corporate Welfare?

Industrialized countries negotiate free trade and investment agreements with other countries, but exempt military spending from the liberalizing demands of the agreement. Since only the wealthy countries can afford to devote billions on military spending, they will always be able to give their corporations hidden subsidies through defence contracts, and maintain a technologically advanced industrial capacity.

And so, in every international trade and investment agreement one will find a clause which exempts government programs and policies deemed vital for national security. Here is the loophole that allows the maintenance of corporate subsidies through virtually unlimited military spending.

Stephen Staples, Confronting the Military-Corporate Complex, presented at the Hague Appeal for Peace, The Hague, May 12th 1999.

Vast government subsidies are sought after in the pursuit of arms trading.

US and European corporations receive enormous tax breaks and even lend money to other countries to purchase weapons from them. Therefore tax payers from these countries end up often unknowingly subsidizing arms sales.

While there are countless examples, a recent one that made a few news headlines was how Lockheed managed to get US subsidies to help sell a lot of fighter planes to Poland at the end of 2002/beginning of 2003. This was described as the biggest deal ever in Europe at that time.

Arms Trade Post September 11, 2001

To counter the horrific act of terrorism in the United States, on September 11, 2001, George Bush has started a War on Terrorism. However, Human Rights Watch has argued that in the pursuit of military policies which include selling arms or providing assistance to other countries, the U.S. has expressed minimal concern about the potential side effects. That is, the increase in militarism itself is risking both the restriction of people’s rights, and the entrenching of power of those who violate human rights.

In addition, the Federation of American Scientists also raise the issue that U.S. military aid has been justified around the world on the grounds of the war on terror, even though that has at times been a dubious reason. In addition, previous restrictions or conditions for military aid are being jettisoned:

The relentless assault on [U.S.] military aid restrictions that began shortly after the September 11th attacks … has continued unabated. This spring the [Bush] administration attempted yet again to win blanket exemptions for aid distributed as part of the war on terror by including language in the FY2002 supplemental appropriations bill that waives most existing restrictions and reporting requirements. The administration’s second attempt was more successful. Two key Defense Department funding allocations—$390 million to reimburse nations providing support to U.S. operations in the war on terror and $120 million for certain classified activities—can now be delivered notwithstanding any other provision of the law. This means there will be none of the normal restrictions placed on this large sum of military aid.

The provision on classified activities is especially troubling because it permits projects not otherwise authorized by law, in other words, covert actions. Not only is the language in the Supplemental opaque, attempts to get more information from a defense committee staffer led nowhere. He refused to answer questions about the intended use of the funds, the applicability of foreign aid restrictions, and reporting requirements on the grounds that all of that information is classified. In other words, there will be no public scrutiny of this aid, and that’s just fine with Congress.

The Bush administration may also be successful in its campaign to ease restrictions on military aid and training to Indonesia despite that country’s utter failure to improve its military’s human rights practices. In May, Defense Secretary Donald Rumsfeld proclaimed that it is time for [the restrictions] to be adjusted substantially. If the results of the Senate Appropriations committee mark up are any indicator, Mr. Rumsfeld is likely to get his wish.

… This latest round of military aid has made one thing clear: the U.S. military has found a new excuse to extend its reach around the globe, arming regimes that had previously been blacklisted for human rights abuses, weapons proliferation, or brutal conflict. What remains to be seen is how long Congress and the American public will accept this formula, especially when they see no concrete results in return.

Military Aid Post September 11th, Arms Sales Monitor, Federation of American Scientists, No. 48, August 2002

Furthermore, Lip Magazine highlights that the U.S. has sold weapons or training to almost 90% of the countries it has identified as harboring terrorists.

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It does not seem to matter who arms are sold to

Last year [2000] the U.S. controlled half of the developing world’s arms market…. This dominance of the global arms market is not something in which the American public or policy makers should take pride in. The U.S. routinely sells weapons to undemocratic regimes and gross human rights abusers.

Uncle Sam World’s Arms Merchant Again; In 2000 U.S. Sells $18.6 Billion Worldwide, $12.6 Billion to Developing Countries, Arms Trade Insider—#53, Arms Trade Oversight Project, Council for a Livable World, August 20, 2001

As mentioned above, the War on Terror has seen the U.S. selling weapons or training to almost 90% of the countries it has identified as harboring terrorists. Yet, for decades, a lot of the arms that the West has sold has gone into the hands of military dictatorships or corrupt governments. This can have the additional intention or effect of hampering any form of democracy in those countries.

Sometimes, these arms sales are made secretly and sometimes, arms are sold to human rights violators (such as one third of all sales by the US, in 1998, as the previous link notes).

According to a report, from the Council for a Livable World’s Arms Trade Oversight Project, [s]ince the end of the Cold War, the United States has been the world’s largest arms dealer … Consequently, governments with some of the worst human rights records [have] received American weapons and training.

In November 2001, The Center for Defense Information, a military watch-dog in Washington D.C., provided a detailed list of the 18 countries and 28 terrorist groups cited by the U.S. State Department as hotbeds of terrorist activity. Included in the list is a chronology of U.S. arms sales and training from 1990-1999 and information on use of child soldiers by governments and non-state actors in each country. The U.S. supplied arms to a number of these nations:

In the period of 1990-1999, the United States supplied 16 of the 18 countries on the [U.S.] State Department list with arms through the government-to-government sales under the Foreign Military Sales (FMS) program, or through industry contracted Direct Commercial Sales (DCS) programs, or with military assistance. Recipients included Algeria, Iraq, Lebanon, and Sri Lanka …, where, arguably, the risk of diversion is high. In addition, the U.S. military (and the CIA) has trained the forces of many of these 18 countries in U.S. war fighting tactics, in some cases including individuals now involved in terrorism.

A Risky Business; U.S. Arms Exports To Countries Where Terror Thrives, Center for Defense Information, November 29, 2001

Professor Robert Neild of Cambridge University writes extensively about corruption, and notes the following with regards to the arms trade:

The Cold War arms race enhanced the opportunities for corruption in the arms trade…. It is not just the buccaneering arms salesmen of the USA or the méchant French who have resorted to bribery. The leading arms firms in virtually every major arms-producing country have been implicated, including reputable firms from most respectable countries…. Nor have bribes been paid only to buyers in the Third World….

Robert Neild, Public Corruption; The Dark Side of Social Evolution, (London: Anthem Press, 2002), pp. 139-140, 142

Neild notes how some of the top most people in rich countries, from ministers, to even a prince, have been implicated in such corruption. The end of the Cold War, Neild also observes, has not led to a let up of corruption in the arms trade:

Bribery in the arms trade has not subsided since the end of the Cold War. On the contrary, as military spending has been cut back the arms firms have been seeking markets abroad more fiercely than before…. One recent estimate reckons that in the international arms trade roughly $2.5 billion a year is paid in bribes, nearly a tenth of turnover.

[With regards to corruption,] the relevant feature of arms trade is that … government ministers, civil servants and military officers have become so intimately involved in the arms export business that they must have been unable to avoid condoning bribery (for example, by turning a blind eye to it), if not encouraging it (for example, by providing advice when serving in embassies overseas about which members of the local hierarchy it was best to approach and how); or obtaining funds from it for the benefit of themselves, or in the case of politicians, for their political party.

The OECD Convention and the new English law against bribing foreigners are steps in the right direction, but its success will depend on how far the exporting countries, led by the United States, manage jointly and sincerely to enforce restraint and deal with such problems as the payment of bribes through foreign subsidiaries. Part of the arms trade is as elusive and rotten as the drugs trade.

Robert Neild, Public Corruption; The Dark Side of Social Evolution, (London: Anthem Press, 2002), pp. 139-140, 142-143, 195

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Geopolitical and Economic Agendas

With the arms trade, governments and corporations can cooperate to meet their different political and economic agendas. The military industrial complexes of the powerful countries also help influence and shape foreign and military policies in a way that enhances their bottom line of profits. For governments though, selling arms can help other geopolitical and strategic interests. Consider, for example, the following:

  • A number of years ago, the United States had agreed to sell 80 advanced F16s to the United Arab Emirates. The deal was estimated to be around $15 billion. In return, the US was to be able to build military bases there with improved access to the only deep-water port capable of housing carriers in the Persian Gulf. This led to concerns about the resulting stability in the region and the possibility of an arms race this could start with neighbors. It is of course hard to know if subsequent arms purchases in the region has been precisely because of this.
  • Many US weapons are also sold to Turkey. These have been used against the Kurds, in what some have described as the worst human rights violations and ethnic cleansing since the second World War. The US turns a blind eye to these atrocities because they are able to set up bases in such a key geopolitical location, giving access to places in the Middle East, and because Turkey could be one of the main receivers of oil headed to Western countries, from the Caspian sea.
  • There are also many arms trade-related interests in the Middle East. By having pro-US monarchies and other regimes (not necessarily democracies) at the helm and promoting policies that often ignore democracy and human rights, arms deals are often lucrative and help continue US foreign policy objectives.
  • Furthermore, the Middle East is the most militarized region in the world procuring more arms than anywhere else. When combining authoritarian regimes and dictatorships, with arms sellers willing to sell weapons to those regimes, the people of the regions are often repressed, and this is a partial (not the only) explanation for why there is so much fanaticism and extremism. (That is, severe and extreme measures in governance and religion, etc has resulted in counter reactions that are also extremist. The majority of ordinary people that want neither of these extremities are the ones that pay the real price.)

As mentioned later in this web site’s section on arms trade, selling advanced weapons is often accompanied by the same sellers and the military industrial complex pointing out how the new world is getting more dangerous due to an increase in the sophistication of weapons. As a result, they inevitably recommend more research and development to stay ahead! This is a nice circular argument that also serves to keep the military industry in business, largely paid for by the tax payers. The Council for a Livable World’s Arms Trade project shows an example of this, in an article, where the title alone summarizes this situation quite well: U.S. in arms race with itself. The article describes how the U.S. Pentagon allows the U.S. Navy to export its newest jets. As a result, they note that:

A pattern is developing wherein U.S. weapons exports and new weapons procurement are driving each other.

  • After, and occasionally even before, new weapons roll off the assembly line, they are offered to foreign customers.
  • Each overseas sale of top-line U.S. combat equipment represents an incremental decrease in U.S. military superiority.
  • This gradual decline in military strength spurs politicians, the military and the defense industry to press for higher military spending to procure increasingly sophisticated equipment superior to weapons shipped overseas.
  • This latest technology is again offered to foreign customers, and the cycle begins anew.
U.S. in arms race with itself, Council for a Livable World, Arms Trade Insider—#51, August 9, 2001 (Text is original, bulleted formatting it mine)

As another example, consider India. Since September 11, 2001, there has been even more volatility in terms of Muslim/Hindu relations, India/Pakistan/Kashmir tensions and other issues. As a result, India is seeking to increase their military spending, while arms dealers are only too willing to help both India and Pakistan. Furthermore, government officials from major arms dealing nations are major actors in attempting to see deals through, as there are obvious political dimensions.

The Financial Times in UK reported (February 27, 2002), that While the international community calls for restraint on the Indo-Pakistan border, governments led by the UK and the US are jockeying as never before for a bigger slice of India’s growing arms budget. Further, they also reported that, Industry officials were unabashed in admitting that the current regional tension between the nuclear-armed neighbors is a unique selling opportunity. (Emphasis Added).

One could point out that as a business an arms company’s main objective is to make profit so they can remain in business. However, for governments that host these arms industries, it would seem that security issues would be an important part of their foreign policy objective.

In that context then, when even very senior government officials are taking part in procuring contracts, it suggests that while this helps achieve economic objectives of arms firms, it doesn’t really address the issue of achieving political stability or not, or even if it is really a major concern as touted. For sure, it is no easy task for such governments because there can be powerful domestic interests and issues and concerns from related industry and other groups, who can argue that continuing to sell arms will help maintain or even create jobs, etc. (This is discussed in more detail a bit later in this section on propaganda for arms trade).

For example, in reference to India holding so-called talks with various governments on easing India-Pakistan tensions (while pitching for defense contracts), the same Financial Times report also points out that Jack Straw, Britain’s Foreign Secretary, is also expected to use the opportunity to lobby for a Pounds 1bn (Euros 1.6bn, Dollars 1.43bn) deal to sell BAE Systems Hawk jets to India. An official of no less stature than Foreign Secretary (somewhat similar to U.S. Secretary of State) is involved in marketing for a weapons company.

But it can go even higher than that. Yahoo world news quoted (February 22, 2002), Praful Bidwai, an Indian journalist and commentator who specializes on defense issues who commented on British Prime Minister, Tony Blair, It’s disgraceful that Blair should have spent more than half his time in India [during his last visit] urging India to buy the jets. (The sale of jets Bidwai is referring to is 66 British-made hawk jets, at a cost equivalent to US$1.4 billion.)

While public relations departments of such governments can say that their leaders are going on humanitarian or peace missions to urge some nations not to go to war, they are also selling arms at the same time, often to both parties. Geopolitically, this is divide and conquer still at work, while economically, this proves beneficial to the armament firms. Corrupt leaders of recipient governments are only too happy to take part as well.

Unfortunately, these are not isolated occurrence (nor is it usually even reported as sensational or questionable), as for a long time, public officials and leaders have been involved in such issues.

As an example of how long this has been going on, consider J.W. Smith’s research:

The forerunners of today’s corporate arms manufacturers (Krupp of Germany, Armstrong and Vickers of England, and others) were originally rejected by their governments and had to depend upon foreign sales for survival. They often furnished arms to both sides in conflicts and even to their own country’s potential enemies. Their practice of warning different countries of the aggressive intentions of their neighbors, who were supposedly arming themselves through purchases of the latest sophisticated weapons, yields a glimpse of the origins of today’s mythical missile gaps.

J.W. Smith, World’s Wasted Wealth II, (Institute for Economic Democracy, 1994), pp. 223–224

And, as J.W. Smith adds,

Centuries of experience in the arms trade have matured into a standard procedure for farming the public treasures through arms sales. As the riches and most powerful country in the world, it is only logical that the United States is where the most money is to be earned procuring and selling arms. With each seasonal arms authorization and appropriation voted on in Congress, there are the predictably cadenced warnings of … dangerous gaps.… It was the recognition of this political control of public (and official) perception that led President Eisenhower to issue his stern warning to the American people in his farewell address: In the councils of government we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military/industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.

J.W. Smith, World’s Wasted Wealth II, (Institute for Economic Democracy, 1994), p.225

A cycle of violence is a real concern. Though the arms trade may not always be a root cause, their impacts are of course significant. Some countries resort to oppression as the way to address problems, and are only too willing to accept new arms. But the arms industry is also willing to help, while some governments may often encourage such regimes to purchase weapons from them, rather than from competing nations.

The UN has long called for a creative partnership with the arms industry saying that such an arrangement would help promote greater transparency, help curb illicit arms trafficking and ensure legitimate use of the purchased weapons. In some respects, this is would be a welcome step forward (as assuming a transition to a real world peace without arms and weapons etc seems highly unlikely, even though it is probably desired by most people.) The U.N. as well as various public groups are in essence pressuring governments of major arms producing and selling countries, to be more responsible and accountable for who arms are sold to and for what purpose.

However, it could be argued that it is under under such rhetoric, combined with the powerful lobbying of the military industries that governments can intentionally or unintentionally end up aiding military industrial complexes more than other governments. As a result, many are concerned that seeking peace via war is a questionable foreign policy to say the least. Indeed, military expenditure in major countries seem to be rapidly increasing, as we turn to next.

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Government Military Budgets and Spending

The next page in this section discusses these numbers.

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In Argentina, the Cynar Julep Was Bound to Be a Classic Cocktail

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In Argentina, the Cynar Julep Was Bound to Be a Classic Cocktail


It’s hardly a shock that the Cynar Julep is an Argentine classic. Between bitter amaro and lemon juice, cooling mint and tart grapefruit, it’s a marriage of extremes, a palate that matches a culture in a never-ending cycle of crisis and bliss. It could belong to anyone and any time. But it’s a time stamp of a very specific moment of the country’s—and its cocktail culture’s—history. And it all began with a sunset. 

It was 2004 and Santiago Lambardi was on a weekend trip with his friends. As night fell after a long day, he got lost in the last rays of pink and orange, and the vast Argentine grasslands below. He couldn’t shake the image from his mind.


“Everything starts with a visual,” Lambardi explains. “That sunset stuck in my head, the way the red, pink and green all met with one another.” 


Lambardi took that image back with him to Sucre, an ambitious new bar and restaurant on Buenos Aires’ northern edge. Argentine food and drink culture revolves around sharing—bottles of wine and family-size plates of food—and Sucre wanted to pull serious bar culture out of the city’s grand hotels and into the emerging dining scene. 

In 2004, ambition had all the chips stacked against it. Argentina was in the middle of its crisis cycle. The 1960s and ’70s were stained by state terrorism before a bittersweet combo of democracy and runaway inflation washed over the 1980s like a rogue wave. The 1990s sutured dire finances with neoliberalism, pumping the country full of cash through the sale of public works, international loans and newly opened economic borders. 

The ’90s was the era of “pizza with champagne.” For a brief moment, when the dollar and peso aligned one to one, the middle class began to travel, shop and dance until they dropped. For young bartenders, it was an exhilarating moment of endless possibility, a chance to participate on the global stage. They could travel to bars in Europe and the United States. Shelves were flooded with imported bottles. Liqueurs, canned juices and preserved fruits were replaced with fresh ingredients, picked by hand from the city’s markets. And the bartenders of the old-school, traditionalist bars passed the baton to the up-and-comers. 

Lambardi got his start under Eugenio Gallo, a legendary bartender of Argentina’s first Golden Age of cocktails. “Bartenders like him made us want to rescue the prestige and craft of bartending that was lost in the ’80s,” he says. “I’ll never forget coming into the bar and watching him shave ice cubes down to the same size, so that every one would melt exactly the same in the glass.”

As the holidays approached in 2001, everything fell apart. The government defaulted on massive foreign debt, and overnight, the peso and dollar jumped to three to one, blanketing the country with violent social unrest and a fog of uncertainty. 

“We got used to the feeling that there were no limits to what we could do,” recalls Pablo Pignatta, who tended the bar of a late-night bartender hangout called Mundo Bizarro. “Suddenly, all we had were limitations. There were so many recipes we couldn’t prepare anymore.” 

Importers stopped bringing in new products and hoarded existing supplies under lock and key. Vodka, gin and rum virtually disappeared, and the popular drinks fit for a Sex and the City viewing party—Cosmos, Appletinis and Mojitos—needed creative new alternatives. Lambardi experimented with what was readily available, starting with amari, vermouths and liqueurs that were domestically produced. 

“We always had amaros on the shelf. But no one ever drank them and we didn’t really know what to do with them,” recounts Lambardi, despite Argentina’s storied history of amari, vermouth and bitter liqueurs. “That was stuff your grandparents drank at home. We’d keep it on hand in the rare case that some foreigner asked for a digestif.” 

A julep was an obvious choice—the mint representing the bright, grassy expanse from that fateful sunset. In the original recipe, one part gin adds a pop to three parts Cynar, which was mixed and topped with citrus-flavored Schweppes to create a gradient effect. It quickly caught on, becoming a bartender favorite replicated in bars around the city. Over time, the gin was removed and grapefruit juice replaced Schweppes when it became too hard to track down from purveyors. 

This year, the Cynar Julep celebrates its 20th birthday. It was ahead of its time, a precursor to today’s amaro revival and explosion of craft vermouth and bitters. A vestige of the stiff, homegrown concoctions of old-school drinking culture (like the Clarito, an extra-dry Martini or the fernet- and vermouth-based Ferroviario). Some say it’s Buenos Aires’ last great classic, before the complicated rotovaps and fat washes of today took over, a drink that can be anyone’s bittersweet accompaniment—for crisis or bliss—for a long glance into the sunset.





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Is the killing of Hassan Nasrallah a game changer? | TV Shows

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Is the killing of Hassan Nasrallah a game changer? | TV Shows


Assassination of Hezbollah head is the culmination of a series of major Israeli attacks on the group’s leaders.

He led Hezbollah for more than three decades and made it into a military and political force to be reckoned with in the longrunning conflict in the Middle East.

Hassan Nasrallah’s killing in a massive Israeli air attack in a southern suburb of Beirut is sure to open a new page in the war.

Israel is on high alert and says it is prepared for all options after it announced his death.

But will Hezbollah respond – and if so, how?

And how will the latest development shape the future of the armed group and its role in the region?

Presenter: Hashem Ahelbarra

Guests

Nicholas Noe – Editor-in-chief of Beirut-based Mideastwire.com

Stephen Zunes – Professor of politics and founding chair of Middle Eastern Studies at the University of San Francisco

Gideon Levy – Columnist with the Haaretz Newspaper and author of the book, The Punishment of Gaza



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Get to Know Charleston, South Carolina Through an Oyster and Okra Gumbo

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Get to Know Charleston, South Carolina Through an Oyster and Okra Gumbo



A great way to get to know a place better is through its food, as inevitably, the regional and seasonal ingredients have played a big role in building the character and personality of a place. So whether it’s strolling through a farmers market or a grocery store or sampling the local specialties at a bakery or restaurant, you’ll likely learn a lot about the geographical, cultural, and historical roots of the area. Call it terroir, call it merroir, or just call it a delicious understanding.

Case in point would be how an oyster and okra gumbo tells you a lot about Charleston and the South Carolina Lowcountry. Chef and restaurateur Mike Lata — of FIG and The Ordinary in Charleston — spoke about the topic in depth at the Food & Wine Classic in Charleston.

Calling oysters and mariculture one of “the best stories in the food chain,” Lata believes that the farm raising of oysters is not only a “net positive for the environment” but that they’re also delicious and “best represent a sense of place, which is what we strive to do in our restaurants.” 

Lata recounted the first time he ever ate an oyster in Charleston: “It was in a skiff with a local farmer, and we were popping oysters in the boat, which had a hole in it. I’m standing in the water and I said, ‘Nowhere else in the world can I get this experience than right here.’ And that was one of the many things that has happened to me over the course of my career that has really grounded me in what it is that we do.”

In preparing his dish of a “neo-traditional version of a Lowcountry gumbo,” Lata admitted that there are many different kinds and iterations of gumbo, likening it to a “dialect in a cuisine.” The language spoken here was seasonality, and specifically that of summertime. “It’s the longest season we have,” said Lata. In the gumbo he prepared, okra and tomatoes figured prominently.

“The springtime, it’s very short in Charleston,” said Lata. “So asparagus, little baby lettuces, and radishes, all the things that come up in the springtime are here and gone so fast. It fills chefs with anxiety because they’re here, you change your menu, they’re gone, you change your menu.” But when summer hits, with vegetables like peppers, tomatoes, okra, and eggplant, said Lata, “They go from June, and then there’s a second run in the fall right now. So you can have those ingredients on your menu for four months. It’s fun to celebrate the summer here.”

Another element of the bowl of Lata’s oyster and okra gumbo was rice. “People don’t know that rice is part of our culture,” said Lata. “A lot of people put the rice down first. I think this is sacrilege.” Rice is traditionally paired with gumbo because, according to Lata, “It was plentiful, and you could make a much bigger meal out of it.” But his take is that gumbo is not a rice dish. He likes to “kind of kick it to the side a little bit” and let the diner break it up, where “it becomes suspended, and the rice is part of it, but it doesn’t take over the texture of the actual viscosity of the gumbo.”

To Lata, an oyster and okra gumbo absolutely speaks of a sense of place. “This dish represents what’s happening right here, right now, in Charleston,” said Lata. “The gumbo is very much a dish that is of the Lowcountry with Lowcountry ingredients.” He believes in a concept he calls “the Charleston palate,” where like-minded, expressive chefs are working with the same local “amazing” ingredients. “You’ll leave with an impression of the city based on the experience,” said Lata. “I think when you leave, you’ll say, there’s something about Charleston and its cuisine that is so unique and so different.”



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Photos: USA, International Presidents Cup wives give life to golf fashion

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Photos: USA, International Presidents Cup wives give life to golf fashion


One of the coolest things about the Presidents Cup, Ryder Cup, and other team events is that the players’ wives are there to show support.

Yes, they are at regular PGA Tour events, but it is different for the team tournaments.

From wearing gorgeous dresses at the opening gala to wearing team colors throughout the event, these wives get their own “team uniforms.”

Seeing them all matching and following along throughout each session is super cute.

Not everyone focuses on what the ladies are wearing, but of course, I would. I love seeing what they get from whoever fits the team and how they style it.

This year, the outfits are fantastic from both sides.

Let’s take a look at some of my favorites that I have seen from both teams.

On Saturday, the American wives and girlfriends wore USA hockey sweaters. With the Presidents Cup in Canada, it was only right to design team sweaters. They were super cute and not too manly, with a softer feminine touch.

Adidas did a great job creating them, and I loved that some of them paired them with puffer vests. I want the vest and the sweater. Not to mention the red-out hat that includes a red flag; it just gives it another pop of color. Some also wore Red, White, and Blue beanie hats, which was a great option.

Look how cute the International wives are in their Nikes, black-and-white socks, skorts, and classic black tops. They are trendy yet completely classic. I love this because I would wear it all. Their gold pom poms are also precious.

On Friday, the International wives wore super cute khaki sweaters with white polo shirts and another black skirt. It was another classic look that looked fabulous on everyone.

The American wives also went with a classic look for Friday. However, it was not my favorite. It looked like an equestrian outfit and felt out of place for a golf tournament. The ladies still looked fabulous, though.

2024 Presidents Cup - Day Two

Photo by Ben Jared/PGA TOUR via Getty Images

The International wives won me over again with their Day 1 black and white sweater.

Some fans on social media joked they looked like the “Hamburgler,” but this sweater is chic and versatile. However, it was a good joke — I will credit them for it.

Regardless, this is a chic option and something that looks good on different body types. I want this sweater in my closet.

It was also great to see some ladies pair pants with the sweater while others wore skirts. The rainboots with tall socks were a great touch to this outfit. I loved seeing the long socks with the skirts as well, and it was just fun and trendy.

Some wore the normal baseball cap, while others brought out the bucket hat, which won me over again.

So far, the International Team’s wives have earned the award for best dressed, but one day is left for the Americans to impress.

Savannah Leigh Richardson is a golf staff writer for SB Nation’s Playing Through. For more golf coverage, follow us @_PlayingThrough on all major social platforms. You can also follow her on Twitter @SportsGirlSL and Instagram @golf_girl_sl.





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Seaweed Salad Recipe – Cookie and Kate

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Seaweed Salad Recipe – Cookie and Kate


Seaweed Salad Recipe – Cookie and Kate

This seaweed salad is colorful, delicious, and boldly flavored with sesame dressing. If you enjoy seaweed salads at Japanese restaurants, try this fun twist on the concept. Many prepared seaweed salads are colored with food dyes, but this one obtains its lively color from veggies.

If you’re relatively new to seaweed, like I am, this salad offers a great introduction. It calls for arame, which has a more mild and sweet flavor compared to other seaweed varieties. The crisp textures of cabbage and bell pepper, combined with soy sauce and ginger, contrast beautifully with the seaweed.

seaweed salad ingredients

This salad is the perfect way to incorporate nutritious seaweed into your diet. Seaweed’s nutritional benefits vary depending on the specific variety, but they are often a good source of fiber, iodine, potassium and magnesium, among others. I try to consume a wide variety of whole foods, so seaweed is a welcome addition.

seaweed salad preparation

Seaweed Salad Ingredients

Arame

Arame seaweed, or sea vegetable, is a brown algae. It grows off the shores of the Ise-Shima National Park in Japan, and has been part of Japenese cuisine for centuries. I ordered EDEN brand arame online through Amazon, which seems to be sold out at the moment. Look for it in well-stocked grocery stores or Asian supermarkets.

Cabbage

Crisp strands of cabbage offer lots of colorful texture. I used green and purple varieties to make this recipe as bright as possible for photos, but either option will work well at home.

Bell Pepper

Sweet bell pepper is the perfect addition to this seaweed salad. Choose red, orange or yellow for this salad.

Cilantro and Green Onion

These herbs offer more fresh flavor. If you don’t like cilantro, you can skip it.

Avocado

Creamy avocado is the perfect counterpoint to the crisp textures. Wait to add avocado until you’re ready to serve each bowl.

Sesame Dressing

This homemade sesame dressing brings it all together! It’s made with tamari (soy sauce), toasted sesame oil, and fresh lime juice.

how to make seaweed salad

How to Make Seaweed Salad

Seaweed salad is surprisingly easy to make, and you’ll find the full recipe below. Arame requires a 5-to-10-minute soak in cool water. During that time, you can whisk together the dressing and chop the vegetables.

Drain the arame, then squeeze out any excess water. Return it to the bowl, add the prepared vegetables, pour in the full batch of dressing, and stir it all together. How’s that for easy?

Reserve the avocado until just before serving since it browns over time. The recipe keeps well in the refrigerator for up to four days.

Watch How to Make Seaweed Salad

seaweed salad with sesame dressing

How to Serve Seaweed Salad

This seaweed salad is a fun and nutritious side salad. Serve it with Japanese cuisine and beyond at any time of year.

You can turn this salad into a complete meal by topping it with Crispy Baked Tofu or prepared fish or shrimp, perhaps on a bed of brown rice. You could even skip the sesame dressing and serve it in place of the kale in my Build-Your-Own Buddha Bowls.

Here are a few more complementary serving options:

Leftover cabbage?

This recipe calls for 1 1/2 cups of cabbage, less than one full head. Leftover cabbage will keep well in the refrigerator, wrapped, for up to one week.

Here are a few ways to use the remaining cabbage: 

Please let me know how your recipe turns out in the comments! I love hearing from you and hope you enjoy this salad.

seaweed salad in bowls

Print

Seaweed Salad

  • Author: Cookie and Kate
  • Prep Time: 25 minutes
  • Total Time: 25 minutes
  • Yield: 4 servings 1x
  • Category: Salad
  • Method: By hand
  • Cuisine: Japanese-inspired
  • Diet: Gluten Free

5 Stars 4 Stars 3 Stars 2 Stars 1 Star

4 from 1 review

This seaweed salad recipe is colorful, delicious and boldly flavored with sesame dressing. The arame needs to soak for 5 to 10 minutes before using, so you can prepare the vegetables and dressing during that time. Recipe yields 4 servings (1 ½ cups per serving for 6 cups total).


Scale

Ingredients

  • 1 ounce arame sea vegetables (about 1 ½ cups dried) 
  • 1 ½ cups thinly sliced purple or green cabbage, roughly chopped into pieces no longer than 3 inches
  • 1 red or orange bell pepper, chopped
  • ½ cup thinly sliced green onion, sliced on the diagonal
  • ¼ cup finely chopped cilantro
  • 1 batch Sesame Dressing
  • 1 ripe avocado, diced

Instructions

  1. Rinse the arame well in a fine sieve, then place it in a generously sized bowl. Fill the bowl with cool water and let it soak for 5 to 10 minutes, until nicely pliable. Drain the arame in the sieve, and gently squeeze out any excess water. Transfer the arame back to your empty bowl, which we will use as a mixing bowl. 
  2. Add the cabbage, bell pepper, green onion and cilantro. Whisk the dressing once more, and pour it all over the salad. Gently toss until the salad is evenly coated in the dressing. 
  3. When it’s time to serve, divide the seaweed into bowls and top with diced avocado. The salad will keep well in the refrigerator, covered, for up to 4 days (add the avocado just before serving).

▸ Nutrition Information

The information shown is an estimate provided by an online nutrition calculator. It should not be considered a substitute for a professional nutritionist’s advice. See our full nutrition disclosure here.

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China’s Pearl River Delta outpaces Tokyo, San Francisco bay areas

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China’s Pearl River Delta outpaces Tokyo, San Francisco bay areas


TWISTY ICON Formally named Guangzhou TV Astronomical and Sightseeing Tower, CantonTower is seen with the Liede Bridge on the foreground, during a night cruise along the Pearl River.

TWISTY ICON Formally named Guangzhou TV Astronomical and Sightseeing Tower, Canton Tower is seen with the Liede Bridge on the foreground, during a night cruise along the Pearl River. —Ronnel Domingo

Carrying mostly Tsinoy tourists and some Philippine-based journalists, the chartered bus has traversed about 17 kilometers of the newly opened sea bridge across the foggy Pearl River estuary. And then the mist parted to reveal the diamond-shaped island in the middle of the water ahead.

Named as West Artificial Island, it is shaped like the body of a kite, with the bridge representing its lengthy tail. The island serves as the mouth of a 6.8-kilometer undersea tunnel, the other end of which emerges onto Shenzhen.

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This is the Shenzhen-Zhongshan Link, tagged at more than $6 billion and opened to traffic last June 30.

This tollway connects two eponymous cities of China’s Guangdong province, and complements the similar bridge-tunnel complex that opened in 2018—the Hong Kong-Zhuhai-Macao Bridge—which is more than twice as long and two and a half times as costly.

These two high-profile projects are but hints of the economic might of an area that represents one-ninth of China’s $17.8-trillion national economy in 2023 and dubbed as the workshop or factory of the world.

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Indeed, just about two hours of flight time across and away from the rising tensions in the South China Sea, particularly the portion that is called West Philippine Sea, there is a parallel and less abrasive buzz.

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It is the rumbling of the economic juggernaut that is the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), which is considered a counterpart or rival not only to America’s Silicon Valley on the other side of the Pacific but also to the nearer Tokyo-Yokohama Metropolitan Area.

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Accounting for about 11 percent of the world’s second-largest economy after the United States means the economic output of the GBA is comparable to that of Australia or South Korea—each valued at about $1.7 trillion, according to the World Bank.

In a commentary, DBS Bank notes that the GBA rang up $2 trillion in 2023. It is “one of the top bay areas in the world,” having surpassed the Tokyo Bay Area ($1.8 trillion) and much more so the San Francisco Bay Area ($1.3 trillion).

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Just as the technology and innovation enclave of Silicon Valley in Northern California made waves in the past several decades, the GBA has been and is continuing to shape the world as we know it today.

DBS cites six factors that underpin the GBA—its strategic infrastructure, high-tech manufacturing, being a trade and e-commerce center, a financial center, robust private consumption and resilient property market.

‘9 plus 2’

The tourist bus made the crossing in late August, carrying a test group that sampled a Guangdong route, which ran through five of the nine cities of Guangdong that comprise the GBA along with the two special autonomous regions of Hong Kong and Macao.

The swing-around covered Shenzhen, Guangzhou, Foshan, Zhongshan and Zhuhai.

The sortie was organized by Shenzhen Airlines and Caloocan City-based New Goldmines Tours and Travels, which also offers other destinations across China.

When asked why a Filipino tourist would choose New Goldmines’ Shenzhen package—over, say, Shanghai or Beijing or other more known destinations—proprietor Ruben Co says it is not about choosing one over another.

“If you want to immerse yourself in 3,000 years of Chinese history, go to Xian (City in Shanxi province). If you want history from the past 500 years, go to Beijing; 200 years, go to Shanghai; for the past century, go to Guangdong,” says Co.

Indeed, how can any noodle dish-loving Filipino not want to see the storied city at the apex of the Pearl River Delta—Guangzhou, also known as Canton?

The skyline of this capital city of Guangdong is undeniably modern, overlaying its past as a peripheral region far removed from the economic and political centers of the imperial dynasties.

The most popular sight on the horizon is the Canton Tower, which stands at a bank of the Pearl River itself. Nicknamed “Small Waist” due to its twisting shape, the 604-meter-tall broadcasting structure is second only to Japan’s Tokyo Skytree, the world’s tallest tower.

But there are other notable buildings; Guangzhou is home to four of the world’s 100 tallest skyscrapers, according to the United States-based Council on Tall Buildings and Urban Habitat.

These include the Guangzhou CTF Financial Centre (eighth-tallest, at 530 meters, with 111 floors), Guangzhou International Finance Centre (27th, 439 m, 101 floors), CITIC Plaza (44th, 390 m, 80 floors) and The Pinnacle (83rd, 350 m, 60 floors).

Shenzhen beats this with a dozen of such buildings—the most in any one city—including the Ping An Finance Centre, fifth tallest in the world at 599 m and with 115 floors. Little wonder, considering that the city is home to one of China’s three stock exchanges, adding to those in Beijing and Shanghai.

Shenzhen’s shortest entry in the list is the One Shenzhen Bay Tower 7, 94th at 341 meters and with 71 floors.

Land of the crane

Still, there are more that are being built, showing that the GBA’s brisk growth is still underway. Looking around as the bus breezes along the intercity tollways, one cannot miss the continuing proliferation of construction cranes. Thus, the now old yet persisting pun that the “crane” is China’s national animal (apologies to the giant panda).

Indeed, there is a forest of high-rise residential buildings across the GBA, the population of which is approaching 90 million or about four-fifths of the Philippines’.

Robin Tan, one of the Tsinoys in the group, could not reconcile what is now a metropolis compared to the Shenzhen that he saw in the 1980s.

Tan had the opportunity to cross over the border from adjacent Hong Kong—then still under the British—when Shenzhen was newly designated as one of China’s first special economic zones.

He was visiting with a former classmate, a resident of Hong Kong who went to high school in the Philippines.

It was a time of openness and reforms when, with Deng Xiaoping at the helm, China was “hiding capabilities and biding time.”

“All I saw was a fishing village, surrounded by farmlands,” Tan says. “Back then, Shenzhen locals highly prized items that were available only in Hong Kong, like some home appliances.”

Now, Shenzhen and the GBA churn out everything and anything that one might need or simply want. In fact, Guangzhou hosts the twice-yearly Canton Fair, aka the China Import and Export Fair.

China’s tourism industry has latched on to a line of a poem that Mao Zedong wrote in the 1930s, during a period of retreat amid escalating civil war, which avers that one who failed to reach the Great Wall is “not a true man” or “not a true hero.”



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Throughout the past century, travelers have embraced America and marveled at the wonders of Japan, despite tribulations inflicted by these nations. Hence, it seems a no-brainer that we should also know more about the latest big player in the neighborhood.





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How to Start a Business in Pennsylvania

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How to Start a Business in Pennsylvania


Starting a business in Pennsylvania can feel like navigating a maze. You need to know the steps to take and the order to take them in. Here’s a straightforward guide to help you get started.



What is the Process to Starting a Business in Pennsylvania?

Feeling overwhelmed by the idea of starting your own business? You’re not alone. Many aspiring entrepreneurs worry about making the right choices from the get-go.

Develop a strong business plan: Your business plan should outline your objectives, target market, and financial projections. It will help you stay focused and attract potential investors.

Choose a business structure: Decide whether you want to operate as a sole proprietorship, LLC, or corporation. Each structure has its own legal and tax implications, so choose the one that best suits your needs.

Select a business name and register it with the state: Pick a unique name for your business and check its availability on the Pennsylvania Business Entity Database. Once you find an available name, register it with the Pennsylvania Department of State.

Obtain necessary licenses and permits: Depending on your business type, you may need various licenses and permits. These could include a general business license, professional licenses, and health permits.

Register for state and federal taxes: Obtain an Employer Identification Number (EIN) from the IRS. Register with the Pennsylvania Department of Revenue for state taxes, including income tax, sales tax, and employer withholding tax.

Open a business bank account: Separate your personal and business finances by opening a business bank account. This will help you manage your finances more effectively and maintain clear records for tax purposes.

How to Register a Business Name in Pennsylvania

Choosing the perfect name for your business is exciting, but it comes with its own set of challenges. What if someone else has already snagged your dream name?

Conduct a Name Search

Before you can register your business name in Pennsylvania, you need to ensure that the name you want is available. Start by checking the PA Business Entity Database. This database will show you if another business has already registered the name you have in mind. It’s a quick and easy way to avoid potential conflicts and ensure your business name is unique.

File a Name Registration Form

Once you’ve confirmed that your desired name is available, the next step is to file a name registration form with the Pennsylvania Department of State. This process involves filling out the necessary paperwork and submitting it along with the required fee. The fee varies, so check the latest rates on the Department of State’s website. Filing this form officially registers your business name, making it legally recognized in Pennsylvania.

Consider Trademarking the Name

While registering your business name with the state provides some level of protection, you might want to consider trademarking the name for additional legal security. Trademarking your business name can prevent others from using a similar name nationwide. To do this, file with the U.S. Patent and Trademark Office (USPTO). This step involves a separate application process and fee, but it offers broader protection and can be a valuable asset as your business grows.

What Business Licenses and Permits Are Required in Pennsylvania?

Securing the right licenses and permits is crucial for operating legally and avoiding future headaches. But figuring out exactly what you need can be confusing.

General business license: Obtain this from the municipality where your business will operate. Each city or town has its own requirements and fees, so check with local authorities.

Professional/occupational licenses: Specific professions like healthcare, cosmetology, and real estate require these licenses. Verify the requirements with the relevant state boards or agencies.

Sales tax permit: If you plan to sell taxable goods or services, you need a sales tax permit. Register for this through the Pennsylvania Department of Revenue.

Employer Identification Number (EIN): Required for most businesses with employees, this number is issued by the IRS. Apply online to get your EIN.

Zoning permits and building permits: Ensure your business location complies with local zoning laws. If you plan to construct or renovate a building, obtain the necessary permits from your local zoning office.

Health permits: Food businesses must get health permits. Contact your local health department to understand the specific requirements and inspection processes.

Environmental permits: Depending on your business activities, you may need environmental permits. These are typically required for businesses that impact air, water, or land quality. Check with the Pennsylvania Department of Environmental Protection for guidance.

How to Register for State and Federal Taxes in Pennsylvania

Taxes can be one of the most daunting aspects of starting a business. But getting it right from the start can save you a lot of trouble down the road.

Obtain an EIN from the IRS

An Employer Identification Number (EIN) is necessary for most businesses with employees. This number identifies your business for tax purposes. To get an EIN, visit the IRS website and complete the online application. The process is straightforward, and you will receive your EIN immediately upon completion. This number is essential for opening a business bank account, filing taxes, and hiring employees.

Register with PA Department of Revenue

If your business has employees or sells taxable goods and services, you must register with the Pennsylvania Department of Revenue. This registration is done through the PA Business Tax Hub, an online portal that simplifies the process. Once registered, you will receive a Pennsylvania Tax ID, which you will use for state tax filings. This step ensures compliance with state tax laws and allows you to collect and remit sales tax if applicable.

Determine Which State Taxes Apply to Your Business

Understanding the various state taxes that apply to your business is crucial for compliance and financial planning. Here are the primary taxes you may need to consider:

Income taxes: Pennsylvania imposes a flat state income tax on business earnings. Whether you operate as a sole proprietorship, partnership, LLC, or corporation, you will need to file state income tax returns. The rate is currently 3.07%.

Sales and use tax: If your business sells taxable goods or services, you must collect sales tax from customers. The state sales tax rate is 6%, with some localities adding an additional percentage. You will need to file regular sales tax returns and remit the collected tax to the state.

Employer withholding tax: If you have employees, you must withhold state income tax from their wages. This tax is then remitted to the Pennsylvania Department of Revenue. You will need to file regular withholding tax returns and keep accurate records of all withholdings.

Unemployment compensation tax: Employers in Pennsylvania must pay unemployment compensation tax. This tax funds the state’s unemployment insurance program, which provides benefits to workers who lose their jobs through no fault of their own. The rate varies based on your business’s history and industry.

Understanding and registering for these taxes ensures your business operates legally and avoids penalties. Each tax has specific filing requirements and deadlines, so keep detailed records and stay organized.

5 Tips for Writing a Business Plan in Pennsylvania

Writing a business plan might seem daunting, but it’s your blueprint for success. A solid plan can guide your decisions and attract investors.

Define Your Business Concept and Target Market

Start by clearly defining what your business will offer. Identify the products or services you plan to provide and the unique value they bring to the market. Determine who your target customers are and what needs or problems your business will address for them. This clarity will guide your decisions and help you stay focused.

Conduct Thorough Market Research

Gather detailed information about your industry, competitors, and potential customers. Understand the market size, growth potential, and trends. Identify your main competitors and analyze their strengths and weaknesses. This research will help you spot opportunities and threats, allowing you to position your business effectively.

Outline Your Marketing and Sales Strategies

Detail how you plan to attract and retain customers. Describe your marketing channels, such as social media, email campaigns, or local advertising. Explain your sales process, from lead generation to closing deals. Include any promotional activities or partnerships that will help you reach your target audience. A well-thought-out strategy will increase your chances of success.

Create Realistic Financial Projections

Estimate your startup costs, operating expenses, and revenue. Include projections for at least the first three years. Break down your financials into monthly or quarterly segments to track progress. Factor in costs like rent, utilities, salaries, and marketing. Realistic projections will help you manage your finances and attract potential investors.

Seek Feedback and Revise as Needed

Share your business plan with trusted advisors, mentors, or industry experts. Gather their feedback and make necessary revisions. This step ensures your plan is comprehensive and addresses potential challenges. Regularly update your business plan as your business evolves to keep it relevant and useful.

What are the Best Resources for Small Businesses in Pennsylvania?

Starting a business is no small feat, and having the right resources can make all the difference. Pennsylvania offers a wealth of support to help you succeed.

Small Business Development Centers (SBDCs): SBDCs offer free consulting and low-cost training services. They assist with business planning, market research, and funding opportunities. Located throughout Pennsylvania, they provide personalized support to help you navigate the startup process.

SCORE mentorship program: SCORE connects you with experienced business mentors who offer free, confidential advice. Whether you need help with business planning, marketing, or financial management, SCORE mentors provide valuable insights and guidance.

Pennsylvania Small Business Assistance Network: This network offers a range of services, including business planning, financial analysis, and market research. They also provide access to funding sources and help you understand regulatory requirements.

Ben Franklin Technology Partners: Focused on technology-driven companies, Ben Franklin Technology Partners provide funding, business and technical expertise, and access to a network of resources. They support startups and established businesses looking to innovate and grow.

Entrepreneur Works: This organization offers loans, training, and one-on-one guidance to small business owners. They focus on underserved communities, helping entrepreneurs overcome barriers to success.

Bridgeway Capital: Bridgeway Capital provides flexible financing options to small businesses, including loans and lines of credit. They also offer business education programs to help you build financial literacy and management skills.

The Enterprise Center: The Enterprise Center offers business education, access to capital, and networking opportunities. They focus on minority-owned businesses, providing resources to help you grow and thrive in a competitive market.

TL;DR

  • What: Steps to start a business in Pennsylvania.
  • So What: Essential for legal compliance and smooth operations.
  • Pros & Cons: Pros: ample resources; Cons: complex requirements.
  • Bottom Line: Manageable with the right info and resources.

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21 Best Christmas Breakfast Ideas ⋆ 100 Days of Real Food

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21 Best Christmas Breakfast Ideas ⋆ 100 Days of Real Food


We have rounded up the best Christmas breakfast ideas to make your holiday morning magical and delicious! Christmas morning is one of the best times of the year! The excitement in the air, the gifts under the tree, and most importantly, the delicious breakfast that starts the day off right.

Whether you are looking to create new traditions or simply wanting to add a special touch to your morning, we’ve compiled the ultimate guide to the 21 best Christmas breakfast ideas that will make your holiday unforgettable.

From classic holiday recipes to fun and exciting recipes, you will find everything you need here! These Christmas recipes are great for the whole family.

Gingerbread Loaf is a must-have at every Christmas breakfast.Gingerbread Loaf is a must-have at every Christmas breakfast.

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Enjoy a warm, cozy Christmas morning with a homemade Gingerbread Loaf. Perfectly spiced with ginger, cinnamon, and molasses, this soft and moist bread is easy to make. Serve it fresh with whipped cream for a delightful holiday treat.

Sprouted Wheat Cheddar and Chive SconesSprouted Wheat Cheddar and Chive Scones

Start Christmas with these delicious Sprouted Wheat Cheddar and Chive Scones. Made from nutrient-rich sprouted wheat flour and bursting with tasty cheddar and chives, they’re easy to make and perfect for everyone. Pair these savory scones with eggs or a salad for a wholesome and festive breakfast.

Healthy Whole-Wheat Crepes RecipeHealthy Whole-Wheat Crepes Recipe

Make your Christmas breakfast special with Healthy Whole-Wheat Crepes. Passed down from Grandma, this sweet or savory treat is now healthier with whole-wheat flour and honey. Practice makes perfect, so cook ahead and enjoy these delightful, versatile crepes with family. Great with fruits, cream, or chocolate!

Hash Brown CasseroleHash Brown Casserole

Start your Christmas Day with a delicious Hash Brown Casserole. This dish is the perfect mix of cheesy, creamy, and crispy. Easy to make, it’s a hit with everyone, young and old alike. Ideal for a festive brunch or as a warm side, it’s a must-have for holiday feasts or preparing meals ahead.

Ricotta Quiche With KaleRicotta Quiche With Kale

This Ricotta and Kale Quiche is a must-try! Even if you’re not a fan of kale or Swiss cheese, this quiche changes the game. Mix in spinach or bacon for a delicious twist. It’s cheesy, easy to make, and perfect for Christmas breakfast or brunch. Plus, you can freeze it too!

Gluten Free Monkey BreadGluten Free Monkey Bread

Dig into this Gluten-Free Monkey Bread for Christmas breakfast! It’s a sweet, sticky treat with soft dough balls rolled in cinnamon sugar. Everyone loves pulling it apart to eat. Plus, it’s perfect for those avoiding gluten yet still delicious for all. Enjoy the cinnamon-sugar joy on your holiday morning!

Blueberry Buttermilk Pancakes (whole-wheat)Blueberry Buttermilk Pancakes (whole-wheat)

Have a delightful Christmas breakfast with these simple Whole-Wheat Blueberry Buttermilk Pancakes. They’re quick to whip up, good for you, and great for a relaxed or on-the-go morning. Cook plenty, freeze some, and savor them whenever you want. Soft, full of juicy blueberries, and so tasty—everyone will love waking up to these!

Huevos Rancheros Casserole RecipeHuevos Rancheros Casserole Recipe

Serve a festive Mexican-inspired dish with the Huevos Rancheros Casserole. It’s a favorite for any meal, perfect for Sunday brunch or a fun Christmas breakfast. Packed with flavor, it’s a dish the whole family loves, and there’s always enough for seconds. Try this twist and make breakfast unforgettable!

For the best Christmas breakfast ideas, this one feeds a crowd.

Sourdough French ToastSourdough French Toast

Start your Christmas with a delicious French toast breakfast. This recipe is quick and easy, taking only 15 minutes. Use leftover sourdough bread and dip it in a sweet egg mixture. Fry until golden brown and enjoy with syrup or fruit. It’s a perfect holiday treat!

Holiday Breakfast Bake (Make Ahead)Holiday Breakfast Bake (Make Ahead)

Serve a homemade Holiday Breakfast Bake to impress your guests! It’s a convenient dish you can prepare early with healthy whole-wheat flour and tasty sausage. Ideal for serving at Christmas breakfast or brunch, this delicious and easy recipe will make your holiday gathering extra special.

FrittataFrittata

Make a yummy frittata for your Christmas breakfast! It’s a simple, tasty dish filled with eggs, milk, and your choice of meats and veggies like onions, peppers, and cheese. Ready in less than 30 minutes, it’s healthy, filling, and loved by kids and adults alike. Perfect for a festive morning!

Whole-Wheat Pecan Maple Cinnamon Rolls (w/o refined sugar!)Whole-Wheat Pecan Maple Cinnamon Rolls (w/o refined sugar!)

This Christmas, warm up with homemade Whole-Wheat Pecan Maple Cinnamon Rolls. They’re sweet but without the refined sugar, full of good things like cinnamon, pecans, and maple. Perfect for sharing a special holiday breakfast with your loved ones, they bring sweet joy without the guilt!

Lemon Blueberry BreadLemon Blueberry Bread

Brighten up your Christmas morning with Lemon Blueberry Bread. This delicious, fluffy bread bursts with juicy blueberries and a hint of lemon flavor. Topped with a sweet blueberry frosting, it’s the perfect treat. Great with your morning coffee or tea, it promises a cheerful and tasty beginning to your holiday celebrations!

Whole-Wheat Buttermilk Cheese BiscuitsWhole-Wheat Buttermilk Cheese Biscuits

Kick off your Christmas day with delicious homemade Whole-Wheat Buttermilk Cheese Biscuits. Crafted with buttermilk and rich white cheddar cheese, these fluffy biscuits add a cheesy twist to a classic recipe. Ideal for a family breakfast, they’re easy to make and can even be frozen for later.

These biscuits are such a fun addition to this roundup of the best Christmas breakfast ideas!

Sweet Potato MuffinsSweet Potato Muffins

Delight in warm Sweet Potato Muffins for your Christmas breakfast! They’re a breeze to whip up in a blender and come out tender, juicy, and subtly sweet, thanks to the sweet potatoes and a hint of spice. Ideal for a nutritious morning meal or a snack, they’re a hit with both kids and grown-ups!

The Best Whole Wheat Biscuits

The Best Whole Wheat BiscuitsThe Best Whole Wheat Biscuits

Make your Christmas breakfast unforgettable with homemade Whole Wheat Biscuits. You only need five easy ingredients, and they come together quickly. You can even freeze them for later use. No complicated kitchen gadgets are required. They bake up soft, tender, and delicious, great with either gravy or jam. Everyone will love them!

Potato PancakesPotato Pancakes

Enjoy easy, golden Potato Pancakes for Christmas breakfast! These hash brown-like treats are crispy outside, soft inside, and delightfully tasty. Quick to cook and adored by both kids and adults, they’re a comforting choice perfect for breakfast or a fun snack. Made with simple, wholesome ingredients for a joyful holiday treat.

Chocolate Baked OatmealChocolate Baked Oatmeal

For a special Christmas breakfast, try Chocolate Baked Oatmeal. It’s a sweet, warm dish that’s easy and quick to make. Mix oats, cocoa, and banana for a healthy yet indulgent start to your day. It’s soft, moist, and has a touch of chocolate flavor. Perfect for a cozy holiday morning.

Biscuits and GravyBiscuits and Gravy

Start Christmas with a warm, comforting plate of biscuits and gravy. This Southern classic features flaky biscuits under creamy, savory sausage gravy, a perfect heartwarming dish. It’s quick to make and loved by everyone, ideal for a cozy holiday breakfast with family.

When it comes to the best Christmas breakfast ideas, we love these biscuits and gravy!

Chocolate Chip Banana BreadChocolate Chip Banana Bread

This holiday, enjoy a slice of homemade Chocolate Chip Banana Bread. It’s soft, fluffy, and filled with chocolate chips for a sweet touch. Easy to make in just a few steps, this bread uses ripe bananas and pantry staples. A perfect treat for Christmas morning that pairs well with your favorite beverage.

As the day draws to a close and the excitement of Christmas morning becomes a cherished memory, it’s the shared meals and moments that often stand out the most. The 21 best Christmas breakfasts are the ones that bring families together, create new traditions, and of course, taste absolutely delicious. Remember, the key to a memorable Christmas breakfast is not just in the elaborate dishes but in the love and joy shared among family and friends.

This year, with these best Christmas breakfast ideas, you’re not just making breakfast; you’re creating memories that will last a lifetime. So, set the table, light the candles, and enjoy a magical Christmas morning that starts with the perfect breakfast.

Frequently Asked Questions (FAQs)

What is the common meal during Christmas Day?

A common meal during Christmas Day typically involves a main course of turkey, ham, or roast beef accompanied by sides like stuffing, roasted vegetables, cranberry sauce, and rolls, finished off with pies or Christmas pudding for dessert.

Is there a traditional Christmas breakfast?

Yes, many cultures have traditional Christmas breakfasts that vary by region. In the UK, it might include smoked salmon and scrambled eggs, while in the Southern US, you might find biscuits and gravy or country ham. Other traditions include panettone in Italy and rice porridge in Scandinavia. However, traditions can also be personal, with families creating their own unique Christmas breakfast rituals.

What to eat for breakfast on Christmas morning?

On Christmas morning, indulge in dishes like cinnamon rolls, French toast with eggnog, pancakes topped with berries and whipped cream, or a savory breakfast casserole with eggs, cheese, and your choice of meat. These options are festive, delicious, and promise to start your day on a joyful note.

How can I make Christmas morning more interesting?

Make Christmas morning more interesting by introducing new traditions like cooking breakfast together as a family, eating in festive pajamas, or setting the table with holiday decorations. Try incorporating fun and unusual recipes each year to keep the excitement alive.

What is the must-have food for Christmas Day?

The must-have food for Christmas Day varies by cultural traditions but often includes items like roasted meats (turkey, ham, or beef), mashed potatoes, gravy, cranberry sauce, and pies for dessert. For breakfast, cinnamon rolls or a special family recipe can be considered a must-have to start the celebrations.

Can I prepare Christmas breakfast dishes ahead of time?

Absolutely! Many Christmas breakfast dishes like casseroles and pastries can be prepared the night before. This allows you to enjoy Christmas morning without the added stress of cooking.

How can I make my Christmas breakfast special for kids?

To make Christmas breakfast special for kids, consider adding fun shapes, like reindeer pancakes or Santa-shaped muffins. Including them in the cooking process and using colorful toppings or festive plates can also add to the excitement.

What are some unique Christmas breakfast ideas?

For something unique, try making a breakfast charcuterie board with an array of cheeses, meats, fruit, and bread, or a festive smoothie bowl decorated with red and green fruits and a sprinkle of edible glitter for a festive touch.

Are there vegetarian or vegan options for Christmas breakfast?

Yes, there are many vegetarian and vegan options for Christmas breakfast. Try making a tofu scramble, vegan cinnamon rolls, or a dairy-free chocolate bread pudding to stick with the festive theme.

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Tax Avoidance and Tax Havens; Undermining Democracy — Global Issues

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The Arms Trade is Big Business — Global Issues


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  • by Anup Shah
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We might not like the idea of paying taxes, but without it, democracies will struggle to function, and will be unable to provide public services. This affects both rich and poor nations, alike.

Individuals and companies all have to pay taxes. But some of the world’s wealthiest individuals and multinational companies, able to afford ingenious lawyers and accountants, have figured out ways to avoid paying enormous amounts of taxes. While we can get into serious trouble for evading payment of taxes, even facing jail in some countries, some companies seem to be able to get away with it. In addition, if governments need to, they tax the population further to try and make up for the lost revenues from businesses that have evaded the tax man (or woman).

Why would companies do this, especially when some of them portray themselves as champions of the consumer? The reasons are many, as this article will explore. In summary, companies look for ways to maximize shareholder value. Multinational companies are in particular well-placed to exploit tax havens and hide true profits thereby avoiding tax. Poor countries barely have resources to address these — many have smaller budgets than the multinationals they are trying to deal with.

Yet, companies and influential individuals also pour lots of money into shaping a global system that they will hope to benefit from. If the right balance can’t be achieved, not only will attempts to avoid taxation and other measures undermine capitalism (which they claim they support) they will also undermine democracy (for even responsible governments may find it hard to meet the needs of their population).

On this page:

  1. Corporate Welfare
  2. Corporate Crime
  3. Tax Avoidance
    1. The scale of tax avoidance
    2. Why is tax revenue important?
    3. Why don’t poor countries raise sufficient tax revenues?
    4. What are the impacts of tax havens on poor countries?
    5. Why have tax havens in the first place and who benefits?
    6. How much money is held in offshore tax havens?
    7. How much potential tax revenue is lost through off-shoring?
    8. What is profit laundering?
    9. How much profit laundering is there?
    10. What is Tax competition and why is it bad?
    11. Where did the idea of tax competition come from?
    12. How did tax avoidance come about in the first place and who are the main actors?
    13. Tax avoidance undermines capitalism
    14. Tax avoidance undermines democracy
  4. Tax Shelters and Avoidance in the US
    1. The scale of the problem
    2. Why a rise in tax shelters in the 1990s?
    3. Corporations manage to reduce their tax burden
    4. Powerful interests minimize Congress’s chance of tough action
    5. Sheer amount of money involved implies problem will remain
  5. Transfer Pricing — Intercepting Wealth
  6. Privatizing profits, socializing costs
  7. Tackling the problem, or pretending to do so?
  8. Rich country governments finally acting because it now affects them?
  9. More Information

Corporate Welfare

Corporations and corporate-funded think tanks, media and other institutions are often the ones that loudly cry at the shame of welfare and the sin of living off the government and how various social programs should be cut back due to their costs. What is less discussed though is the amount of welfare that corporations receive.

Corporate welfare is the break that corporations get both legally and illegally through things like subsidies, government (i.e. public) bailouts, tax incentives and so on. Corporations can influence various governments to foster a more favorable environment for them to invest in. Often, under the threat of moving elsewhere, poorer countries are forced to lower or even nearly eliminate certain corporate taxes to these large foreign investors.

This distorts markets in favor of the big players. As such influence spreads globally, it contributes to a form of globalization that seems less like true free market capitalism that they talk of, but more like a modern form of the unequal mercantilism that prevailed during colonial and imperial times.

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Corporate Crime

When we talk about crime, we think of the violations of law caused by individuals, some of which are horrendous. However, almost rarely talked about (especially in corporate-owned media) is the level of crime caused by corporations. Such crime includes evasion of taxes, fraud, ignoring environmental regulations, violating labor rights, supporting military and other oppressive regimes to prevent dissent from workers, including violent crime against workers, and so on.

In the US, for example, back in the mid-1990s it was estimated that corporate crime cost the country about $200 billion a year.

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Tax Avoidance

Tax avoidance is sometimes differentiated from tax evasion. Avoidance often applies to legal means (such as loopholes and clever accounting techniques) to avoid paying the full amount of tax, whereas evasion is often applied to more criminal forms of not paying tax.

As tax expert Richard Murphy notes , tax evasion and tax avoidance can happen on the same transaction for different taxes in different places and often involve elaborate trails involving more than one person, company or organization.

The scale of tax avoidance

Through offshore tax havens and fraud, and through transfer pricing, billions of dollars go untaxed. Estimates range from $50 billion to $200 billion of revenue losses.

For example, in 2000, Oxfam made a conservative estimate that tax havens had contributed to revenue losses for developing countries of at least US$50 billion a year. Side NoteAnd they stress that this is a conservative estimate as it did not take into account outright tax evasion, corporate practices such as transfer pricing, or the use of havens to under-report profit.

Individuals too have been involved in huge amounts of capital diversions. For example, former dictator of Nigeria, Sani Abacha, and his associates are said to have diverted over $55 billion to private accounts in foreign banks — Nigeria at one point after that suffered a $31 billion external debt burden.

How much potential tax revenue is lost through off-shoring?

Tax Justice Network reports that because tax authorities continue to be mainly limited to powers within their own countries, the result has been a massive loss of tax revenue. As a result, based on the $11.5 trillion above, they estimate that $255 billion is lost each year to governments around the world because of the no or low taxation of funds in offshore centers . Importantly, they reiterate, this estimate does not include tax losses arising from tax competition or corporate profit-laundering.

What is profit laundering?

Profit laundering is the moving of profit from the countries in which it was earned and where it would incur tax, into tax havens. It is only possible to do this if there is secrecy to avoid the tax authorities noticing it.

Interestingly, Christian Aid notes that:

The UK government estimates that between 50 and 60 per cent of world trade is accounted for by transactions between different parts of the same company, creating ample scope for mispricing and, as a result, the laundering of profits.

The Shirts Off Their Backs; How tax policies fleece the poor , Christian Aid, September 2005, p. 14

Not only is globalization not really global, but a large chunk of world trade may include laundering of profits.

This is one reason you may occasionally hear of mispricing. Some examples Christian Aid noted included how:

  • Some TV antennas from China could be under priced at US$0.04;
  • Rocket launchers from Bolivia could be under priced at US$40; and
  • US bulldozers could be under priced at US$528

But other items could also be over-priced, for example:

  • German hacksaw blades priced at US$5,485 each;
  • Japanese tweezers at US$4,896; and
  • French wrenches at US$1,089.

How much profit laundering is there?

Christian Aid reported in 2005 that the total estimated dirty money flowing into the global banking system is $1 trillion . Breaking that down:

Amount siphoned from the developing world
$500 billion
Amount of profit laundered by multinational companies
$200 billion
Amount of profit laundered by individuals and criminals
$250 billion
Amount lost through corruption
$50 billion

What is Tax competition and why is it bad?

In short, tax competition is about countries out-competing each other to offer the lowest taxes possible to attract foreign investment.

Tax Justice Network describes the negative impact that Tax Competition has on developing countries:

Faced with the pressures of the globalisation of capital movements and the threat that companies will relocate unless given concessions on lower regulation and lower taxes, governments have responded by engaging in tax competition to attract and retain investment capital. Some states with limited economic options have made tax competition a central part of their development strategy. This inevitably undermines the growth prospects of other countries, as they attract investments away from them, and has stimulated a race to the bottom…. a recent empirically based study in the United States has found:

There is little evidence that state and local tax cuts – when paid for by reducing public services – stimulate economic activity or create jobs. There is evidence, however, that increases in taxes, when used to expand the quantity and quality of public services, can promote economic development and employment growth.

If this conclusion applies to a relatively high tax economy like the United States, it is even more applicable to economies in south Asia and sub-Saharan Africa, where social and economic development is held back by under-investment in infrastructure, education and health services. Proponents of tax competition have never answered the crucial question of how far it should be allowed to go before it compromises the functioning of a viable and equitable tax regime. Taken to its logical extreme, unregulated tax competition will inevitably lead to a race to the bottom, meaning that governments will be forced to cut tax rates on corporate profits to zero and subsidise those companies choosing to invest in their countries. This is already happening in some jurisdictions. The implications of this for tax regimes and democratic forms of government around the world are dire.

Tax Us If You Can , Tax Justice, September 5, 2005, p. 5

Where did the idea of tax competition come from?

Tax Network Justice summarizes:

Many in business and pro-business political actors argue that nations should compete with one another to attract inward investment from international business by offering:

  • Lower tax rates on profits
  • Tax holidays
  • Accelerated tax allowances for spending on capital assets
  • Subsidies
  • Relaxation of regulations
  • The absence of withholding taxes
  • Other forms of tax inducement

This process, called tax competition, has been widely adopted across the world and has become a key element in shaping world-wide investment flows. The IMF, World Bank and EU have all, in varying ways, encouraged developing countries to compete in this way for resources.

Tax Us If You Can , Tax Justice, September 5, 2005, p. 17

But the Network goes on to mention that this is fundamentally flawed as a development strategy because it limits the control any country can have over taxation policies and creates harmful distortions.

In addition to being anti-democratic the notion of making nations compete with other this way does not make sense for its citizenry (though it does for multinational companies who can have a choice of which country to invest in.)

How did tax avoidance come about in the first place and who are the main actors?

Tax Justice Network provides a decent summary in the same report mentioned above (see chapter 3). In short, the main players who promote what they call tax injustice are:

  • Accountants
  • Lawyers
  • Banks
  • Transnational corporations
  • Tax haven governments
  • Tax avoiders and tax evaders

In addition, the Network says that this whole idea probably started with the US and the British Empire. The offshore phenomenon probably began in the US when states such as New Jersey and Delaware realised that they could lure businesses from more prosperous states by offering tax advantages on condition that they register in their states. And then, The first real cases of international tax planning occurred in the British Empire in the early twentieth century when wealthy people started to use offshore trusts established in places like the British Channel Islands to exploit the curious British phenomenon of the separation of taxation residence and domicile.

In the 1920s, the UK found new ways for the internationally mobile person to avoid tax when a UK court ruled that a company incorporated in the UK was not subject to UK tax if its board of directors met in another country and it undertook all its business overseas. At a stroke, the concept of the separation of the place of incorporation of a company and its obligation to pay tax had been created. This concept survived in UK law until the 1990s, by which time it had become the basis for the operation of most tax haven corporations throughout the world.

In the 1930s Switzerland offered internationally mobile people residency, only requiring them to pay a fixed, pre-agreed amount, each year, not varying with income, and not disclosed. This concept has been widely copied the Network also noted.

The Network continues by adding that the other major Swiss contribution to tax injustice is banking secrecy, a concept which they developed at the time of the French Revolution (for the benefit of the French aristocracy) but which became enshrined in Swiss law in the 1930s. The Swiss believed at the time that it provided them with a competitive advantage as a small, land-locked state in a hostile European environment.

This all happened not by chance, but, as the Network also notes, by plan: They were thought up by lawyers and accountants and were exploited by them and their bankers for commercial gain.

Tax avoidance undermines capitalism

As Christian Aid notes, tax avoidance distorts markets, undermining capitalism:

The ability of multinationals to take advantage of tax havens to avoid tax and launder profits distorts markets. It gives them an edge over nationally based competitors, which has nothing to do with the inherent quality or price of the goods and services they are selling. This undermines the basic notion of capitalism.

Even in rich countries, multinational companies are managing to avoid paying tax. Recent research suggests that at least 75 per cent of UK-quoted companies do not pay tax at the notional rate of 30 per cent that applies to them. Some pay less than half this rate. In the US, 60 per cent of corporations with at least US$250 million in assets reported no federal tax liability for any of the years between 1996 and 2000.

The Shirts Off Their Backs; How tax policies fleece the poor , Christian Aid, September 2005, p. 15

Tax avoidance undermines democracy

Today, of the 72 tax havens, almost half are British territories, dependencies or Commonwealth members. Britain alone loses some £100 billion (approx. US $170 billion) a year in avoided taxes. Even for a wealthy nation, this is a reasonable sum when public funds are scarce and people are reluctant to see the government spending more money on various programs.

In effect then, tax avoidance is also a threat to democracy, according to Prem Sikka, a professor of accounting at the University of Essex, UK:

The tax avoidance industry is on a collision course with civil society. Elected governments take months and years to develop tax laws, but in pursuit of private profits accountancy firms can undermine them within hours of a chancellor’s budget speech.

… The [accountancy] firms also peddle a range of avoidance schemes in the UK, which are estimated to cost the state £100bn each year in possible tax revenues.

… The government continues to award lucrative public contracts to the big accountancy firms. Their partners advise government departments on legislative design and enforcement. There has as yet been no public investigation into the tax avoidance industry.

Major casualties of the tax avoidance industry are ordinary people, who are forced to pay higher taxes while corporations and the rich avoid theirs. Individuals on the minimum wage have to pay income taxes, but some 65,000 rich individuals living in the UK are estimated to have paid little or no income tax. The top fifth of earners pay a smaller proportion of their income in tax than the bottom fifth. Corporate tax payments now account for just 2.5% of national income, the smallest share ever.

… Without adequate tax revenues no government can deliver its legislative program, provide public goods or redistribute wealth.

We can be persuaded to vote for governments that promise to invest public revenues in education, healthcare or public transport. But the tax avoidance industry exercises the final veto by shrinking the tax base and eroding tax revenues.

Prem Sikka, Accountants: a threat to democracy, The Guardian, September 5, 2005

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Transfer Pricing — Intercepting Wealth

Transfer pricing provides a multinational corporations’ tax-avoiding dream. It allows the ability to set up offshore accounts and paper companies through which most transactions occur, without having to pay as much taxes. Internal accounting and costing is therefore adjusted to minimize the costs and maximize the profits.

Much needed revenue for social needs in a country is therefore lost this way.

The following quotes summarize this quite well:

The post-Second World War period witnessed not merely a rise in TNCs’ control of world trade, but also growth of trade within related enterprises of a given corporation, or intra-company trade. While intra-company trade in natural resource products has been a feature of TNCs since before 1914, such trade in intermediate products and services is mainly a phenomenon of recent decades. By the 1960s, an estimated one-third of world trade was intra-company in nature, a proportion which has remained steady to the present day. The absolute level and value of intra-company trade has increased considerably since that time, however. Moreover, 80 per cent of international payments for technology royalties and fees are made on an intra-company basis.

A Brief History of TNCs, CorpWatch.org

(Note in the above quote at the sheer amount of intra-company trade as a percentage of world trade. Bear this in mind the next time corporate-media talk about the growing trade and prosperity for all.)

In this continuing battle over the world’s wealth, transfer pricing becomes a crucial aspect in the interception of the wealth of both Third World and First World countries. The multinationals either manufacture in a low-wage country or purchase cheaply from a local producer. The product, is then, theoretically, routed to an offshore corporation and invoiced (billed) at that low price. There the export invoice is increased to just under the selling price of local producers. However, the offshore company is nothing more than a mailing address and a plaque on the door. No products touch that offshore entity; even the paperwork is done in corporate home offices.

In 1980, there were eleven thousand such corporations registered in the Cayman Islands alone, which has a population of only ten thousand. [Many of these funnel a lot of money out of Central and South America] … These corporations are doubly insulated from accountability. …

These secret maneuvers of multinationals, and the huge blocks of uncontrolled international finance capital, make many of the statistics on world trade questionable. If the sales of offshore American production facilities had been treated as exports, the 1986 American trade deficit of $144 billion would have become a trade surplus of $57 billion. (Emphasis Added)

J.W. Smith, The World’s Wasted Wealth 2, (Institute for Economic Democracy, 1994), p. 138.

As an example of corporate evasion, the following is about Rupert Murdoch’s News Corporation:

In March 1999, the Economist reported that in the four years to 30 June of the previous year, News Corporation and its subsidiaries paid an effective tax rate of only around 6 per cent. This compared with 31 per cent paid by Disney. The Economist notes that basic corporate-tax rates in Australia, America and Britain, the three main countries in which News Corporation operates, are 36%, 35% and 30% respectively.

The article points to the difficulties of finding out about the specifics of News Corporations’ tax affairs because of the company’s complex corporate structure. In its latest accounts, the group lists roughly 800 subsidiaries, including some 60 incorporated in such tax havens as the Cayman Islands, Bermuda, the Netherlands Antilles and the British Virgin Islands, where the secrecy laws are as attractive as the climate.

The article continues, This structure, dictated by Mr Murdoch’s elaborate tax planning has some bizarre consequences. The most profitable of News Corporation’s British operations in the 1990s was not the Sunday Times, or its successful satellite television business, BSkyB. It was News Publishers, a company incorporated in Bermuda. News Publishers has, in the seven years to June 30th 1996, made around £1.6 billion in net profit. This is a remarkable feat for a company that seems not to have employees, nor any obvious source of income from outside Mr Murdoch’s companies.

Tax Havens; Releasing the hidden billions for poverty eradication, Oxfam, June 2000

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Privatizing profits, socializing costs

One of the quotes above, is from J.W. Smith. There he describes the cost of transfer-pricing. He goes on to explain quite well the effects and points out that both high-wage and low-wage countries lose out as the wealth is siphoned to offshore accounts to avoid taxes. This is historical mercantilism to perfection by intercepting both the foreign country’s wealth and one’s own.

However, as he goes on to point out, there is a difference in that today’s corporations don’t have any loyalty to any nation, due to greed.

The last 20 years has seen the wealth of the United States reduced as corporations seek out cheaper and cheaper places where wages are less and environmental, safety and other regulatory measures are less or non-existent. (This has the effect of depressing wages and labor rights in industrialized as well as developing countries and therefore affects the wealth of those countries.)

Disparities between the wealthy and poor continue to rise, in the most powerful nation as well as all other countries. As Smith continues to point out,

Looking only at their bottom line, and listening to their own rhetoric, the managers of capital are unaware they are moving society back towards the wealth discrepancies of the early Industrial Revolution; this return to quasi-aristocratic privileges is a recipe for eventual contraction of commerce and destruction of their own wealth along with that of labor.

J.W. Smith, The World’s Wasted Wealth 2, (Institute for Economic Democracy, 1994), pp. 164-165.

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Tackling the problem, or pretending to do so?

While Smith wrote the earlier piece in 1994, it is applicable today as well, with wave of news about corporate crime around the start of 2000 and fascination of some CEOs and other executives as some major American companies have faced bankruptcy or have collapsed.

Yet, the media, while offering an outpouring of news and analysis have by and large concentrated on individual characters and looked for scapegoats (CEOs being the current flavor!). The impacts of the underlying system itself has been less discussed and when it has, often been described as basically ok, but just affected by a few bad apples. As media critic Norman Solomon describes,

On the surface, media outlets are filled with condemnations of avarice. The July 15 edition of Newsweek features a story headlined Going After Greed, complete with a full-page picture of George W. Bush’s anguished face. But after multibillion-dollar debacles from Enron to WorldCom, the usual media messages are actually quite equivocal — wailing about greedy CEOs while piping in a kind of hallelujah chorus to affirm the sanctity of the economic system that empowered them.

…Corporate theology about the free enterprise system readily acknowledges bad apples while steadfastly denying that the barrels are rotten. … (Let’s hold people responsible — not institutions, a recent Wall Street Journal column urged.)

…Basic questions about wealth and poverty — about economic relations that are glorious for a few, adequate for some and injurious for countless others — remain outside the professional focus of American journalism. In our society, prevalent inequities are largely the results of corporate function, not corporate dysfunction. But we’re encouraged to believe that faith in the current system of corporate capitalism will be redemptive.

Norman Solomon, Renouncing Sins Against the Corporate Faith, Media Beat, Fairness and Accuracy In Reporting, July 11, 2002

In some countries, the business community shouts a lot about government interference (in their profits) and recommends that the government be reduced in bureaucracy. While many governments are plagued with inefficiency, some is due to the powerplay of groups including various industries.

However, without the various governments, entire industries and market economies wouldn’t have got started in the first place. In the US, for example:

  • The pharmaceutical industry received research and development funds from the US government.
  • The Internet was created with public funds, but is now handed to corporations to profit from.
  • Most major industries receive some support or bailout, including:
    • Energy industries
    • Agriculture
    • Biotechnology
    • Information Technology
    • Telecommunications
    • Weapons/arms/military industrial complex
    • and so on.

While the private companies profit, any costs, such as social problems resulting from environmental degradation, resulting social degradation and so on, are all socialized. Privatizing profits, socializing costs is a common phrase heard in critical circles.

And politics has gotten even murkier since the aftermath of the September 11, 2001 terrorist attacks on the U.S. Some industries have used the September 11th incident to say that has led to loss of business and to try and ask for government assistance as a result. While it has surely had an effect, for example, in the airline industry, as the UK’s BBC 24 news program on September 27, 2001 at about 8:30pm in an interview, said that before the tragic terrorist attacks some of the airline companies such as British Airways were already suffering quite badly, and this tragedy provided an excuse to get out of it.

Of course, this doesn’t mean all companies were using the excuse, but it does highlight the difficulty of addressing these issues during highly emotional times. Companies are understandably going to try and use this to their advantage, if possible.

Economist and professor at MIT, Paul Krugman highlights this with the case of the highly publicized Enron collapse, in a piece that appeared in the New York Times, quoting here at length:

Enron’s illusion of profitability rested largely on mark to market accounting. The company entered into contracts that would yield profits, if at all, only over a number of years. But Enron jumped the gun: it treated the capitalized value of those hypothetical future gains as a current profit, which could then be used to justify high stock prices, big bonuses for executives, and so on.

…the Bush administration has turned to the political equivalent of another increasingly common accounting trick: the one-time charge.

According to Investopedia.com, one-time charges are used to bury unfavorable expenses or investments that went wrong. That is, instead of admitting that it has been doing a bad job, management claims that bad results are caused by extraordinary, unpredictable events: We’re making lots of money, but we had $1 billion in special expenses associated with our takeover of XYZ Corporation. And of course extraordinary events do happen; the trick is to make the most of them, as a way of evading responsibility. (Some companies, such as Cisco, have a habit of incurring one-time charges over and over again.)

The events of Sept. 11 shocked and horrified the nation; they also presented the Bush administration with a golden opportunity to bury its previous misdeeds. Has more than $4 trillion of projected surplus suddenly evaporated into thin air? Pay no attention to the tax cut: it’s all because of the war on terrorism.

Paul Krugman, Bush’s Aggressive Accounting, New York Times, February 5, 2002

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Rich country governments finally acting because it now affects them?

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I have not even scratched the surface of this issue here, at it is large and complex. Since the September 11 tragedy, this issue has ballooned incredibly and I have hardly discussed any of the issues arising since then. However, there are a number of organizations doing more research on this, and critics have pointed out these issues for a long time. You could start off at the following links to learn more:

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