Carnival Corporation announced its second quarter profits today.
Its revenues to date for 2015 (June 30th) were $7,180,000,000 (billion), consisting of passenger fares (tickets) of $5,425,000,000 and onboard purchases (booze, spa, specialty meals, casino) of $1,755,000,000. It’s net income was $271,000,000.
And Carnival paid taxes of? Nothing.
You have heard me say this before. By incorporating in Panama and registering its cruise ships in third world countries like Panama and the Bahamas to avoid taxes (and wage and safety laws), Carnival enjoys an enormous advantage over land-based business by paying virtually no U.S. taxes.
But Carnival uses our Federal agencies daily: the U.S. Coast Guard, Customs & Border Protection, FBI, USPH, EPA, DOT, Homeland Security and many others. It pays nothing for these services.
Those federal agencies are paid for by U.S. taxpayers, like you and me.
I have paid many millions of dollars in U.S. income over the years. I’m not complaining. I love the U.S. and know that it takes money to operate a country like ours.
But there is something fundamentally wrong when Carnival avoids taxes, enriches its executives hundreds of millions of dollars a year and pays its crewmembers around the world only a small pittance for their hard work.
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Photo Credit: Craig Rubadoux via Florida Today