On 17 July, the American services union SEIU will be holding a global action day against private equity firms such as the Amsterdam-listed KKR. There will be demonstrations in 100 cities including Amsterdam, the SEIU website announces.
According to the SEIU, KKR founder Henry Kravis made about $51,000 per hour in 2006, yet he would pay a lower tax rate on his profits than nurses and teachers on their incomes of $50,000 per year.
In 2006, KKR listed an investment fund on the Euronext exchange in Amsterdam. It has been suggested that it selected Amsterdam in order to evade American disclosure rules.
Another reason may have been the friendly tax climate in the Netherlands. Research institute SOMO has called the Netherlands a ‘tax haven’ for multinational corporations.
According to the SEIU, the deals made by private equity firms such as KKR have contributed to the current credit crunch. “The global economy has suffered recently as wages for most workers have dropped or stagnated despite the soaring cost of food and gas”.
Meanwhile, Kravis expects to make a profit out of the crisis. “Economic environments like these provide opportunities”, the Wall Street Journal quoted him saying. “We at KKR have made some of our best investments in periods like these”.
In America, the action day against private equity firms has a political edge since Kravis is a ‘major fund-raiser for John McCain’s presidential campaign’, according to the SEIU. The SEIU supports Barack Obama.
The action day was announced at the SEIU’s convention in Puerto Rico and will be organised in collaboration with campaign organisation MoveOn.org. According to the New York Times, Amnesty International will also help mobilise supporters.
17 July action website. Image: SEIU convention (Photo SEIU / Flickr)
Tags: Amsterdam, Henry Kravis, KKR, Private Equity, SEIU, SOMO
