US Execs vs Germany, UK, France, etc.

Enrique Diaz-Alvarez enrique at
Wed Jun 17 18:18:26 PDT 1998

Dennis R Redmond wrote:
> On Wed, 17 Jun 1998, Enrique Diaz-Alvarez wrote:
> > Why did they [Daimler and Chrysler] agree to have the company
> > incorporated under German law?
> Germany doesn't tax capital gains, as far as I know, and the US does, so
> there are huge tax advantages to this sort of thing.

Really? I would think capital gains taxes are a minor issue for a corporation. US-based shareholders of DC will still have to pay capital gains. Corporate taxes are, I understand, similar in both countries.

> Chrysler is the weakest of the Big
> Three and could get clobbered if the SUV market ever sours, so it's a
> case of small Northamerican dogs figuring out its best to run with
> the really big Eurodogs.

I am not sure this explains why Chrysler execs have agreed to a deal that may very well result in a substantial haircut on their compensation packages. I mean, at some point they are going to have to go in front of a board packed with unionists, explain to them why they deserve a few million each in return for riding a stock market bubble, and try to keep a straight face, no?

> -- Dennis

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