Bailouts for Carnival

[Joebucks]

16 hours ago, NavyCruiser said:

 

Not true.

https://thehustle.co/the-economics-of-cruise-ships/

Some facts:

Total revenues of ALL/Global cruise lines are $46 Billion.

3 players — Carnival Corporation & PLC, Royal Caribbean Cruises LTD, and Norweigan Cruise Line HLD — control roughly 75% of the market. 

All have headquarters in Miami, Florida.

But Carnival is incorporated in Panama and flies the flags of Panama and the Bahamas; Norwegian is incorporated in, and flies the flag of, the Bahamas; Royal Caribbean has been incorporated in Liberia since 1985, and flies the flags of the Bahamas and Malta.

According to annual report filings, the major cruise lines pay an average tax rate of 0.8% — for below the 21% US corporate tax rate.

So true contribution, tax-wise, to the economy is negligible.

Of course, add in airlines & other transportation, & US employees' salary taxes contribution...

 

 

This is an extremely narrow view of economic contribution from cruise lines. If we counted out every corporation that gamed tax and other financial obligations by going overseas, there wouldn't be a lot left. If it wasn't an important economy, why are there cruise ports in California, Texas, Alabama, Mississippi, Florida, Louisiana, South Carolina, New York, New Jersey, Puerto Rico, and maybe a few others?

 

The travel industry like you mentioned contributes to taxis/rideshares, hotels, airlines. Other small businesses too, restaurants, attractions, shopping, etc. Jobs like longshoremen, coastguards, port workers. All of these things bring in taxes too. It is a massive economic stimulator and states like Florida would have a serious discussion with you about the significance of the .8% tax rate.

[Earthworm Jim]

20 hours ago, CruisingFromLA said:

When Trump said that, I thought that this is a great idea. Providing extra beds as needed on the ships. Of course the US government will compensate Carnival for this. As a Los Angeles native, I am curious if they can utilize the rooms to house the homeless, as the biggest concern right now is how the homeless cannot self isolate and that the virus will spread among the homeless community.

 

I daresay that's not an image the cruise industry is looking for: "Sleep where a homeless person just slept on your vacation!"

 

And cruise ships haven't proven to be very good venues for self isolation either.

Edited March 20, 2020 by Earthworm Jim

[Bookbug53]

On 3/19/2020 at 9:09 AM, lottiegreen56 said:

I know we're all here together because we like cruises or are  interested in cruising. As much as I love the activity, I'm going to be livid if they bailout the cruise industry. These companies have avoided taxes and hiring US workers for years and shouldn't take advantage of the American public fiske. Businesses shouldn't operate under the assumption that we are going to bail them out when they are on the verge of failing. Pull yourselves up by the bootstraps.

 

Am I the only one thinking this way? 

Earlier this year, ITEP reported Netflix and Amazon paid no federal taxes. Other companies on this list include Chevron, Delta Airlines, Eli Lilly, General Motors, Gannett, Goodyear Tire and Rubber, Halliburton, IBM, Jetblue Airways, Principal Financial, Salesforce.com, US Steel, and Whirlpool. The complete list is at https://itep.org/notadime.

 

Cruise lines generated $46 billion in total economic impact in the United States in 2018 and supported 373,738 U.S. jobs.

[quattrohead]

So the obvious answer is to suspend the payment of tax to the US government. That will be a huge saving to companies that do pay tax to this country and "oh dear so sad" to those that don't.

[Roger88]

They have already paid all the taxes to the government. And they will pay even more when the situation will be settled. Its not up to us to decide pay or not to pay. These companies, these cruisers consume oil, gas, human resource - the amount of taxes they pay is incredible. Its vital for the government to support these industries cause they are the main tax payers in the country (or some of the key tax payers)