Big business taking advantage of loopholes or tax breaks in a way that hurts workers. The latest “Lost in the Sauce” comes courtesy of Treen aka “nonangrypoliticalwoman”, and ironically enough involves… well, sauce. In this case, it’s a giant British liquor company that makes Captain Morgan Rum:

With little fanfare, a deal is moving forward to direct billions in U.S. tax dollars to an unlikely beneficiary — the giant British liquor producer that makes Captain Morgan rum.

Under the agreement, London-based Diageo PLC will receive tax credits and other benefits worth $2.7 billion over 30 years, including the entire $165-million cost of building a state-of-the-art distillery on the island of St. Croix in the Virgin Islands, a U.S. territory.

Virgin Islands officials say the arrangement complies with the letter and spirit of tax law and will help the islands’ sagging economy.

Except that Diageo is moving to the lovely island of St. Croix and its “sagging economy” and leaving behind Puerto Rico, while leaving about 300 people jobless there.

Oh, and this little tidbit: “the Virgin Islands’ subsidy for the new distillery there, along with the other benefits, are so generous that they practically guarantees a profit on every gallon of rum produced there by Diageo, the biggest distilled spirits maker in the world.”

The apathy towards this situation is high even by Congressional standards:

With the exception of Ellis and a handful of lawmakers, however, the deal has attracted little opposition in Congress or elsewhere.

Treasury Secretary Timothy Geithner has said he does not have authority to block or investigate the project. Criticism on the Hill has been confined to a small group that includes Republican Congressmen Dan Burton of Indiana and Darrel Issa of California, plus a handful of Democrats with large Puerto Rican constituencies.

So next time you order up a Captain and Coke, just think subsidy baby!

Captain Morgan

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