U2: Prattling Bums
Steve Novick
Let me put this as forcefully as I know how: If U2's Bono moves to Oregon, obtains American citizenship, and wins the Democratic nomination for the United States Senate, I will vote for Gordon Smith in 2008.
You can say a lot of bad things about Smith - and I have - but you can't say that he is unequivocally the most hyprocritical human being on the face of the earth. That honor is reserved for Bono.
Today's New York Times reports that U2 and the Rolling Stones are among the world's worst abusers of Dutch tax shelters. The accounting is complex, but basically, to avoid paying British and Irish taxes, the Stones and U2 shift assets and income to the Netherlands. In U2's case, by the way, their net worth is estimated at about $900 million.
Bono, of course, spends his free time going around the world babbling that wealthy countries should forgive third-world debt. Which means he's asking American and European taxpayers to pick up the tab. Now we learn that conveniently, he himself likes to avoid paying taxes.
As the Times reported:
“Ethically in my opinion, Bono’s tax arrangements are entirely inconsistent with his calls upon government to support anti-poverty drives,” said Richard Murphy, who runs Tax Research LLC, a research institute based in Norfolk, England, and was one of three co-authors of the SOMO report on Dutch tax shelters. “You cannot be demanding that resources be allocated to anti-poverty drives and then deny those resources to government.”
“Bono is a worldwide advocate for greater aid to the developing world, and I applaud him for that,” said Joan Burton, the spokesperson for the Irish Labor Party’s finance unit and a former cabinet minister, in a telephone interview. “But obviously the money for that comes from taxation, so it’s very difficult to ask other people to pay tax to contribute to something very worthwhile while at the same time not paying taxes in a very modest environment.”
No kidding. Bono is saying that Mr. and Mrs. America, making $60,000 a year, should pay higher taxes (that's what it comes down to) to help out the Third World, when he's worth hundreds of millions and won't bear his share of Ireland's taxes.
I realize that the United States could significantly increase foreign aid without a big tax increase; only about 1% of the Federal budget goes to foreign aid. But as a matter of principle, it is beyond despicable that Bono would ask Americans and fellow Europeans to pay higher taxes for his cause when he's a tax dodger himself.
I'm not surprised about the Stones, who never pretended to have sympathy for the downtrodden - only for the Devil. Bono is another story.
To quote the Times again: SOMO, the research group, said the Dutch shelters affect “both the capacity of developing-country governments to supply essential services to their populations and the capacity of developed-country governments to provide finance for development in the form of debt relief and official development aid.”
The Blue thing to do is to boycott U2. Write Bono and tell him that it will be a bloody Sunday indeed before you buy another CD or attend another concert.
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Feb 4, '07
Novick,
Please quit complaining about U2, get off your ass and go file the papers to run for office. Seriously. I've given you money to run in the past and you've given it back. You should just get it over with and run.
-Varner.
10:43 p.m.
Feb 4, '07
Hypocrites be damned! But let's not let the Stones off so easily. Just because they do more prancing than preaching, doesn't mean they're any less slimy for dodging taxes. Don't just hold the contientious among us to a high standard.
[Besides, haven't the Stones also fathered a small nation among them, putting a gazillion mouths to feed on the planet?]
11:34 p.m.
Feb 4, '07
While I agree with the premise that Bono shouldn't get to play a shell game to avoid paying taxes, your argument about the impact toward debt relief is fallacious. Debt relief has a negligible impact on taxpayers in first world companies. The money has already been spent. For example I got bonds for Christmas when I was growing up. I stuffed them in my sock drawer waiting for them to mature. If those bonds disappeared today I wouldn't really loose anything, as the value of those bonds was not realized. The idea that if the countries in the G8 were to forgive debt they would need to raise taxes is just wrong. Third World debt does not generate income for the first world.
Feb 5, '07
futuresalemstaffer... point taken. However, Bono advocates more than just debt relief. He also encourages direct aid to developing countries, HIV initiatives etc. I applaud the effort, but Steve is quite correct, "walk the talk" Bono.
Feb 5, '07
If all the world's political and religious leader's would stop living like "ROCK STAR'S" and do the their job's the problem's that Bono and U2 have been addressing would be more managable.People who complain about what U2 does with their money are the same people,whom if they were on the Titanic would go up to the bartender and complain that there's not enough ice in their drink!Why doesn't the media spend more time on why world leader's are incompetent at solving these various problem's?I guess that might require some real work!
Feb 5, '07
Surprise, surprise, a self-obsessed rock star whose shtick is to be self-effacing and world-focused "technically" relocates to avoid taxes. Bono is pathetic, sucking up to Jesse Helms and others, crapping along with various hard-right groups, and, as now demonstrated, avoiding taxes to avoid the "capitalist manifesto". Screw this idiot.
Doesn't he realize that gov't action is precisely what is requires to remedy the ills of the world? And doesn't he realize that corporate fuckwads like himself (indeed, the article draws comparison between U2 and other major corporations) avoid taxes and thereby deny funds to their gov'ts for such remedies? Bono is no more holy than the average corporate raider on a NY board. Fuck him!
Feb 5, '07
Doesn't he realize that gov't action is precisely what is requires to remedy the ills of the world?
Come now, lets not get carried away.
2:09 a.m.
Feb 5, '07
Doesn't he realize that gov't action is precisely what is requires to remedy the ills of the world?
Yes, in fact that's what I find so refreshing about Bono's approach. He doesn't argue that a bit of "We Are The World" charity can solve the problems of the developing world. If chatting it up with Jesse Helms and Paul O'Neill can get American right-wingers to invest some money in AIDS relief in Africa, well, so be it.
But of course, that's what makes this taxation story so disappointing. Put your money where your mouth is, Bono.
Feb 5, '07
When RIAA filed suit against Napster, MTV's coverage of the whole file-sharing controversy included a bit with Bono in which he said he thought it was being blown out of proportion, that the record industry had previously claimed "home taping" would kill them and it didn't, and that "I'm overpaid anyway."
A few years later, U2 signed a $50 million deal with a new record label. I tried to imagine U2's army of agents and lawyers going into the negotiations saying, "$70 million? Oh no, Bono thinks he's overpaid ... $50 million is plenty!" Somehow, it didn't ring true.
The point being, Bono's been talking out of both sides of his mouth for a long time.
Feb 5, '07
Seems Bono has this thing that he likes to do at some concerts: One time, between songs, he starts slowly clapping his hands. There's nothing but the sound of clap... clap... clap... Bono says, "Every time I clap my hands, a child in Africa dies." clap... clap... Finally, a voice from the audience: "Then bloody stop clapping your hands!"
I like this story because it does a good job of illustrating U2's effect on world hunger. Not very much.
Feb 5, '07
As usual, most responses to this story about U2 are typical, liberal, knee-jerk reactions: the Irish government knows much better than Bono how his money should be spent, so he should be giving it all to them.
Well, did you ever stop to think that mabye, just MAYBE, he is able to help charitable causes more because he does NOT give his money to the Irish government? I'm not saying this is the case, but everyone sure seems to be judging Bono when they certainly do not have all the facts.
9:35 a.m.
Feb 5, '07
"As usual, most responses to this story about U2 are typical, liberal, knee-jerk reactions: the Irish government knows much better than Bono how his money should be spent, so he should be giving it all to them."
I think if you read carefully, the response is actually that the Irish government is better ENTITLED to Bono's money than the Netherlands. How it might be spent, by either government, did not enter the discussion. Nice diversionary tactic, though.
Feb 5, '07
Kinda reminds me of John Edwards' "Two Americas' nonsense while he builds a 28,000 square foot house.
Of course, I'm sure he feels he's better ENTITLED to Bono's money as well.
10:36 a.m.
Feb 5, '07
As Kari indicated, Bono is calling on rich NATIONS to forgive third-world debt. That means he is asking the taxpayers of those nations to contribute, as taxpayers, to the third world. If the debts are not forgiven, the third world presumably repays them, reducing the need for American taxpayers to pay taxes for services. (Whether it's direct aid or forgiving debt, the result is the same: the need for taxes from Americans will indeed go up if the Third World does not repay what it legally owes.) If he believed that private charity was the answer to everything, Bono should just call on Americans as individuals to give more money to third-world causes. That is not what he is doing. As to Edwards, I object to a huge house on global warming grounds, but there's a difference between being a rich guy paying your taxes and a rich guy who wants other taxpayers to contribute to his favorite (albeit noble) cause while dodging taxes himself.
Feb 5, '07
This doesn't really register on my outrage-meter.
If 1% of the country's taxes are going to foreign aid (and in America, I think most is not to going developing countries, but to Israel and Egypt), avoiding your taxes isn't greatly impacting that issue.
If Bono can double our commitment to foreign aid, I don't give a rip if he's paying taxes -- his advocacy would have thousands of times more impact than his personal action.
What Bono probably should be doing to best further his cause is avoiding taxes (that go to wasteful things like trillion dollar war machines) and giving that money to advocacy or directly to developing countries, while pushing for both public and private contributions to solve the problem.
Feb 5, '07
Ron:
He also encourages direct aid to developing countries, HIV initiatives etc. I applaud the effort, but Steve is quite correct, "walk the talk" Bono.
Bob T:
Well heck, he's no different than Teddy Kennedy and others in that highly overrated, soft-hand family. WHat else would you expect? But at least you're criticizing Bono. As for me, I like him even more now. He must have realized that sending millions to government so it can be wasted is not a good idea.
Bob Tiernan
Feb 5, '07
If I remember correctly, many British bands from the 60s and 70s move out of the country because the tax rate for them was ridiculously high - perhaps even 90%. Did the U.K. do anything to fix this since then?
Feb 5, '07
I realize that this isn't really the point of this post, but while we're on the subject, I have a hard time supporting initiatives to increase direct payments of foreign aid to foreign governments. Most of the literature I've read on the subject has suggested that most of these aid dollars are either wasted or used to further fund oppressive governments that are largely to blame for their countries' impovershment. While I'm not against foreign aid per se, I do think that recipient nations should be required to engage in large scale economic reforms in order to be eligible for the aid. It is my understanding that increasing economic freedom, not foreign aid, is the best way to help bring third-world nations up to speed.
Feb 5, '07
Let me get this straight... its OK to be a tax evading creep if you don't give a damn, but to speak out about injustice requires self-flagillation through taxation. Something is rotten in Denmark when the quiet perpetuators of inequity are enabled to hide their money (estimates range up to 40% of the US upper class tax liability is sheltered off-shore), yet those that deny government the monetary means to war and cronyism are labeled "Prattling Bums." Frankly, I don't think Bono is stupid enough to sacrifice his wealth to the scrutiny of the US Tax system, but if he is, I'd gladly take his share of tax revenue, now that we know about it, for a new nationwide Health Care initiative!
Feb 5, '07
"I dont' believe in riches, but you should see where I live." —U2 lyrics (in which Bono acknowledges some hypocrisy).
To be fair, does anyone know how much Bono gives in charity?
Feb 5, '07
Mick:
If I remember correctly, many British bands from the 60s and 70s move out of the country because the tax rate for them was ridiculously high - perhaps even 90%. Did the U.K. do anything to fix this since then?
Bob T:
Apparently not, but I thought Eire had reduced tax rates to encourage wealthy people to remain or relocate there so they could spend their money there rather than see them leave. My favorite example of these people is Charlie Chaplin (and I am a fan -- he was just a jerk) who arrived in the UK in 1952 when his re-entry back into the States was going to be blocked or something, and he praised the new national health care program in Britain and then settled in Switzerland where he wouldn't have to pay for one.
Bob T
2:39 p.m.
Feb 5, '07
This post seems woefully incomplete.
Suppose Bono avoided $500,000/year in taxes.
Before leaping to any conclusions, I'd want to have a VERY clear picture of what he did with the $500,000 every year.
I'm not taking sides on this one, because I don't know enough…but I'm disappointed with the stridency of the post, coupled with the absence of thorough analysis.
2:49 p.m.
Feb 5, '07
U2 has a net worth of $900 million. That means they ain't giving it all away. They're piling it up in stacks. Bono was called for the article in the Times, and if he had had anything good to say -- like, "I give all my money away, the $900 million all belongs to the Edge" -- I'm sure he would have said it. And Betsy, most taxes even in the US go to Social Security, Medicare, Medicaid and other things that I think you like. The military budget is about 20% of the total, even now. In Ireland, I would guess (although I do not know for sure), a much smaller % of the budget goes to the military. In the US (I'm not sure about Ireland), of course, you can deduct your charitable giving from your taxable income, so using tax shelters does not in any way enhance your ability to give more money away - it just enables you to keep more money for yourself.
3:02 p.m.
Feb 5, '07
Here's more -- On how Bono spends his money -- Time notes that it’s not unusual for the U2 front-man to spend “several thousand dollars at a restaurant for a nice Pinot Noir.” According to the Globe, the U2 singer reportedly spent $1,700 on a first-class ticket to fly his favorite hat from London to Italy. Yes, his HAT. And, again, he's attacking GOVERNMENTS for not doing enough for the 3d world - and government means taxes. That's why, when Bono criticised the Irish government for not setting aside 0.7% of GDP for the 3rd World, a government minister, Conor Lenihan, suggested that if he paid his taxes then the government would be half way to meeting the figure.
3:23 p.m.
Feb 5, '07
This post is a joke, right?
I'd rather have Bono get to say where he spends his money than hand it over to freakin' Dick Cheney.
3:24 p.m.
Feb 5, '07
BTW, Ireland is reputed to be one of the world's biggest corporate tax havens right now.
Feb 5, '07
I wonder how these dastardly Dutch tax shelters compare to US tax rates? I suspect that Bono would benefit significantly by relocating to Deleware ... or even Oregon.
Feb 5, '07
Did anyone notice that U2 has sucked since about 1982?
Feb 5, '07
Compare Dick's giving makes you look clueless!!
Didn't Dick give over $10M to get his name on a hospital wing? (Yes, stock from Halli, but did the Hospital care?)
And how much did Kerry give that same year? Not much.
Blue folks are misers when it comes to giving up their own money.
Feb 5, '07
Blue folks are misers when it comes to giving up their own money.
True enough, though apparently this should earn us some points with Bob Tiernan.
Anyway, Bono's a jerk. I hate him because every time I watch a documentary about some American musician, he's in it, usually getting more face time than the subject of the film. Do we really need fricking BONO to tell us why Billie Holiday's so great?? Patronizing ass...
John
11:07 p.m.
Feb 5, '07
Steve,
Your ability to twist information disturbs me as someone who wants my Democratic vote as a US Senator.
The story does not say that Bono is "among the world's worst abusers of Dutch tax shelters." (your quote) It says that Mick Jagger, the band U2, and many other individuals who gain most of their income from royalties use Dutch tax shelters. The story makes absolutely no assertions about who is worst or best or who shelters the most or the least income in this group.
The story--as you accurately point out--says that the "Band U2" has transferred most of the income from it's songs to the Dutch shelter. I don't know how much this is Bono's doing or his bandmates doing, but I suspect you don't know, either.
And your final response is how much Bono spends on Pinot Noir and a hat? My god, the outrage. Did you happen to notice how much Bill Gates, the world's biggest philanthropist, spent on his mansion in Seattle? How much does he spend at dinner? Any clue?
If and when you have some information about how Bono uses his wealth, let's talk. Until then, I'll spare my outrage for out of control CEO salaries, thank you very much.
Feb 6, '07
I love the idea of Bono as our Senator. Are you kidding? U2 concerts all over the state...
10:24 a.m.
Feb 6, '07
"If and when you have some information about how Bono uses his wealth, let's talk. Until then, I'll spare my outrage for out of control CEO salaries, thank you very much."
How many times does Steve need to repeat it?
This is NOT about how rich Bono is, although Steve's later responses addressing his less-than-maximal charity are distractive from the original point: for Bono to urge GOVERNMENTS to include more TAX MONEY in their foreign aid budgets, and then HIDE HIS TAX MONEY FROM HIS GOVERNMENT, is hypocritical. And "his government" is Ireland, not the US.
Feb 6, '07
"..Do we really need fricking BONO to tell us why Billie Holiday's so great?"
No doubt. U2 is so self righteous and sanctimonious. Plus, they've got a cumulative talent equal to that of Kevin Federline.
Give me a party band like ZZ Top any day.
Feb 6, '07
Britain definitely does not have the sort of confiscatory tax rates that it used to have. Here's a UK government web site with info, for example.
Feb 6, '07
What you conveniently forget is that U2 just moved their Royalties to the Netherlands. Together with the Rolling Stones no other huge Band owns the rights of their music. NOT EVEN THE BEATLES!!! The Stones and U2 are an exception in the music world. Not Bono moved the Royalty company. It was a decision made by all 4 members of U2 and their manager. They split all income in equal parts. Bono has not as much money as you might think. He still pays all his other taxes in Ireland since he and his family do still live and work there. He campaigns for what he beliefs in and what his conscience forces him to do. He is a lobbyist and salesman of an idea. His money wouldn't make a difference even if he would give it all away (which would be simply retarded). The only way to change the face of Africa is to drop the debts and to help the african nations to help themselves. Bono is very effective in his second job and that's why he has been asked to do it.
I suppose a politician can keep his money and still be inspiring and tell people how to make a better world but not a successful Rock Star. That's hypocritical in my opinion.
Feb 7, '07
I gave up on U2 when the song "Sunday, Bloody Sunday" was played on tv at the beginning of last year's Super Bowl. Being of heavy Irish descent I found it to trivialize one of the worst atrocities committed by the English in Northern Ireland. In fact, I sent Bono an email about it, but he never got back to me. Probly off complaining about an atrocity he couldn't cash in on...
Feb 8, '07
Okay, would anyone who's actually ever taken advantage of a tax loophole or break please be quiet?
<.......>
Wow, dead silence, eh? Let's get over the idea that any government is entitled to our money. Until you know where Bono puts his personal money, spare me the outrage. Just in time and effort alone, he outdoes most of us, and I'd bet especially the people who yap the loudest about this.