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Palantir funnels earnings to US to avoid European taxes, report finds

Palantir is shifting profits from its European operations to the United States, allowing the Florida-based data analytics giant to pay minimal taxes in Europe, a new report finds.

The report by the U.K.-based Centre for International Corporate Tax Accountability and Research, a group partly funded by labor unions that researches corporate tax avoidance in an effort to win reform of global tax rules, found that Palantir’s European subsidiaries, which took in €440.5 million in annual revenue in 2024, report far smaller profit margins in Europe than in the U.S.

“Although a substantial part of Palantir’s revenue is realized in Europe, almost all of the pre-tax profits are funneled to the United States,” the report said.

Palantir pays no U.S. federal income tax because previous losses, tax credits, and R&D deductions offset its taxable income; and virtually no state income tax, with the exception of Maryland, which levies a digital services tax.

The profit gap between the U.S. and Europe is stark. In 2025, Palantir’s American business pocketed 47.7 cents in profit from every dollar of revenue — more than double the previous year’s 22.5 cents. Outside the U.S., the profit margin was just 6.3 percent. In some European subsidiaries, it fell to around 3 percent, according to the new report.

CICTAR argues that Palantir “intentionally and artificially” shrinks European profits — and therefore its European tax bills — to concentrate profits in the U.S. There is no claim in the report that such arrangements, often referred to as “profit shifting,” are illegal. Multinational companies often reduce reported profits by paying subsidiaries or other related entities for intellectual property, loans or expertise.

In Sweden, for example, Palantir reported €13.7 million in revenue in 2024, but only €1.1 million in profit. At Sweden’s 20 percent corporate tax rate, that left the company with a tax bill of just €424,000.

In its Q2 earnings report on Monday, Palantir made no explicit reference to earnings from its European subsidiaries. Instead, it highlighted its U.S. business, where revenue rose 115 percent year-on-year to $1.57 billion (€1.36 billion), and boasted of its 62 percent profit margin.

A U.K.-based Palantir spokesperson said that the majority of the company’s 2025 revenue and profitability was driven by its U.S. business. “Our tax position in each jurisdiction reflects the level of economic activity there, and we meet our tax obligations in every market in which we operate,” the spokesperson said.

Not alone

Palantir is not the first U.S. tech company to draw scrutiny over how it books profits in Europe.

In 2024, the European Court of Justice ordered Apple to pay Ireland €13 bn in back taxes, ending an 8-year-long fight over what Brussels said amounted to illegal state aid. Amazon also fought the European Commission over claims it had received an unlawful tax advantage worth around €250 million in Luxembourg — a case the company ultimately won. Microsoft, meanwhile, has faced scrutiny over its Irish subsidiary, Microsoft Round Island One, which avoided paying millions to the state after claiming tax residency in Bermuda. The U.S. software giant has denied that it is circumventing Ireland’s tax laws.

Jan Willem Goudriaan, General Secretary of the European Federation of Public Service Unions — a supporter of CICTAR— said that companies such as Palantir, Amazon and Microsoft focus on minimizing the taxes they pay, “thus robbing funding for public services.”

“Companies bidding for public contracts should have to demonstrate responsible tax conduct by disclosing where their revenues, workforce, profits and taxes are located,” he said.

Another reason for the low profits of Palantir’s European subsidiaries is their high personnel costs. In the U.K., where most of the company’s non-U.S. workforce is based, Palantir reported £173 million (€204.3 million) in employee costs for 749 staff in 2024 — an average of £230,974 (€272,803) per employee.

The report also points to Palantir’s use of stock-based compensation across its European subsidiaries, especially in the U.K., Spain and Norway. This means employees are paid partly in company shares or awards. Those awards are recorded as staff expenses, which can lower a subsidiary’s corporate tax bill.

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Europe’s ETS revision is an opportunity to strengthen maritime competitiveness

For Europe’s maritime sector—and beyond—the European Commission’s proposal to revise the EU Emissions Trading System (ETS) goes in the right direction and reflects much of what Cruise Lines International Association (CLIA) has consistently called for: a framework in which carbon pricing supports, rather than holds back, the maritime transition, strengthens Europe’s industrial competitiveness and preserves connectivity, including for outermost regions. The starting point is an encouraging one.

Nikos Mertzanidis, executive director, Europe, Cruise Lines International Association (CLIA)

The proposal matters because it is about far more than carbon pricing. Not that the sector shies away from that: cruise lines already comply with the ETS, in addition to port dues, passenger charges, tonnage-based taxes and value-added tax (VAT). Unlike traditional taxation, the ETS is designed to drive decarbonization. Its revision matters because, by reinvesting a greater share of maritime ETS revenues in infrastructure—ports, shore-side electricity, alternative fuels, bunkering and other facilities—Europe can help the maritime industry maintain its global leadership while accelerating the energy transition. That leadership is not a matter of prestige. It is a matter of European prosperity, jobs, skills, competitiveness and industrial capacity across the continent.

The cruise industry alone generates an annual economic impact of €64.1 billion in Europe and supports 445,000 jobs. It is also one of Europe’s industrial success stories, combining world-leading shipbuilding, advanced engineering and maritime innovation with high-value tourism. Behind those figures lies a shipbuilding story that few industries can match: 98 percent of the global cruise orderbook is built in European shipyards, from Fincantieri in Italy to Chantiers de l’Atlantique in France and the Meyer yards in Germany and Finland. There is €62.2 billion committed to ships on order through 2037. This investment sustains a vast ecosystem of engineering firms, technology providers and thousands of suppliers, keeping in Europe the skills and industrial capacity that other regions of the world are actively trying to attract.

By reinvesting a greater share of maritime ETS revenues in infrastructure—ports, shore-side electricity, alternative fuels, bunkering and other facilities—Europe can help the maritime industry maintain its global leadership while accelerating the energy transition.

That is why it is important to be clear about cruise’s role in Europe. Cruise is a key part of the maritime industry: we build ships, move people between ports and across seas, and help drive innovation and investment through one of the most advanced supply chains in Europe. Cruise should therefore be understood first and foremost as part of Europe’s maritime industrial ecosystem, combining maritime transport, advanced manufacturing and tourism in a way few sectors do. It is governed by an extensive regulatory framework alongside the rest of international shipping while supporting one of Europe’s most innovative maritime value chains.

Via Shutterstock

Cruise represents just a small fraction of the global fleet—less than one percent of commercial vessels—but it is consistently at the forefront of maritime’s transformation in ways that benefit the broader maritime sector. Decarbonization is our north star, and our experience shows that it advances fastest when it travels hand in hand with innovation. Done well, decarbonization is not only an environmental objective but also a driver of industrial modernization and European competitiveness. This is why cruise matters to Europe’s maritime future: the industry is helping to turn decarbonization ambition into industrial progress—investing more than €44 billion since 2022 in new ships designed to meet or exceed Europe’s environmental regulations to improve performance and advance the maritime transition.

The cruise industry alone generates an annual economic impact of €64.1 billion in Europe and supports 445,000 jobs. It is also one of Europe’s industrial success stories, combining world-leading shipbuilding, advanced engineering and maritime innovation with high-value tourism.

More than half of the capacity on order today is capable of using liquefied natural gas (LNG), which can reduce CO2 emissions by up to 20 percent compared with conventional fuels. And while LNG is not the end-game solution, it does serve as an important bridge to lower-emissions fuels like renewable and synthetic methane as these types of fuels become available at scale. Today, 57 percent of cruise ships on order are designed with multi-fuel capability, meaning their engines will be able to run on low and zero greenhouse gas fuels, when available at scale. In addition, more than 60 percent of the global cruise fleet can already connect to shore-side electricity where ports are equipped, allowing ships to switch engines off at berth and reduce emissions by up to 98 percent. By 2028, close to 75 percent of capacity will be shore-power-ready.

The environmental transition is broader than carbon reduction alone. Across the global fleet, 225 ships—80 percent of the fleet and 84 percent of passenger capacity—are outfitted with advanced wastewater treatment systems, with more than a third capable of meeting stricter Baltic Sea Special Area discharge standards. More than 94 percent of the reporting fleet produces freshwater onboard, and approximately 60 percent can meet their full onboard consumption needs. Together, the cruise sector’s advancements in environmental technologies and practices help reduce emissions, support responsible operations and lessen pressure on local infrastructure in the destinations cruise ships visit.

Europe leads the world in cruise shipbuilding, maritime innovation and the deployment of technologies that can help decarbonize shipping.

Via CLIA

None of this happens in isolation from the places we serve. Cruise itineraries are planned up to three years in advance, which makes cruise one of the most predictable forms of tourism and allows ports, destinations and operators to manage visitor flows together. The economic footprint is tangible and local: when a ship provisions in port, a single day’s order of fresh produce alone can be worth some €150,000 to local suppliers, before counting fuel, services, excursions and the wider activity a call generates. And because cruise ships connect islands, outermost regions and remote coastal communities—often where alternative transport links are limited—cruise can extend the tourism season and spread benefits well beyond the traditional hotspots.

The road ahead, through the European Parliament, Council and trilogues, will be long, and we will walk it constructively together with our members and institutions at every stage. But the compass is set. Europe leads the world in cruise shipbuilding, maritime innovation and the deployment of technologies that can help decarbonize shipping. By preserving that leadership and reinvesting the sector’s ETS contribution into maritime infrastructure, fuels and facilities, the ETS will not merely price emissions—it will help build the ports, fuels and ships of the future, preserving the competitiveness and global leadership of Europe’s maritime industry for decades to come.


Disclaimer

POLITICAL ADVERTISEMENT

  • The sponsor is Cruise Lines International Association (CLIA)
  • The political advertisement is linked to advocacy on The EU Emissions Trading System (ETS).

More information here.

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Pluralistic: Post-political (09 Jul 2026)


Today's links



The icy chamber at the center of Dante's hell, dominated by Satan, massive and peering around with his chin propped on his elbows, which rest of the ice-sheet. From the ceiling of the chamber dangles a massive, decapitated head, suspended by the hair. Beneath it is a pile of corpses in middle ages armor. On the opposite side of the chamber stands a suburban housing plot; another group of (living) soldiers in armor aim a giant catapult at it.

Post-political (permalink)

There's plenty of reasons to be skeptical of centrists who bemoan "political polarization" and call for a politics that abandons the "tribalism of left and right."

Obviously there's the false equivalence: on the right, you have fascists who want to send masked, armed goons into the streets to beat, kidnap and murder your neighbors. On the left, you have calls for higher taxes, unions, environmental impact reviews for data-centers, and an end to the genocide in Gaza.

"Leftist extremism" is moving some zines around:

https://www.theguardian.com/us-news/ng-interactive/2026/jun/24/prairieland-texas-ice-protests-zines

Right wing extremism is attempting the overthrow of the government, murdering brown people in gulags, and the earth's richest man slaughtering the world's poorest children for the lulz:

https://hsph.harvard.edu/news/usaid-shutdown-has-led-to-hundreds-of-thousands-of-deaths/

"Horseshoe theory" (the idea that the far right and the far left actually bend around to meet each other) is bullshit:

https://pluralistic.net/2024/02/26/horsehoe-crab/#substantive-disagreement

The reality is that the right and left have large, substantive disagreements that are matters of life and death. Anyone dismissing these as "tribalism" doesn't know what "left" and "right" mean. At best, they have mistaken a collection of cultural signifiers – pronouns, MMA, brands of beer – for politics.

Mistaking cultural signifiers and identity markers for politics is centrism's most dangerous pathology, the thing that makes centrism the handmaiden of the right. If you think identity markers are politics, then you'll be tempted to think the answer to a world run by 150 rich, white, cis straight guys is to replace half of them with women, POCs and queer people. The difference between the left and the right isn't the identities of the ruling class – it's whether we have a ruling class at all.

I collect definitions of "right" and "left." There's Corey Robin's definition from The Reactionary Mind, that conservatism is the belief that some people were born to rule, and others to be ruled over, and that any attempt to elevate the latter group to positions of power (through civil rights movements, affirmative action, etc) will result in dire misrule and disaster:

https://pluralistic.net/2025/07/22/all-day-suckers/#i-love-the-poorly-educated

This explains how the right can encompass white nationalists (rule by white people), Hindu nationalists (rule by high-caste Hindus), libertarians (rule by bosses), imperialists (rule by military aggressors), etc. It also explains the right's obsession with learning the racial and gender markers of anyone involved in a plane crash or other disaster: "See, the oil tanker was being piloted by a DEI hire when it crashed into that bridge!"

Another important definition is Wilhoit's Law:

Conservatism consists of exactly one proposition, to wit: There must be in-groups whom the law protects but does not bind, alongside out-groups whom the law binds but does not protect.

https://pluralistic.net/2025/08/26/sole-and-despotic-dominion/#then-they-came-for-me

This one hardly needs explanation in this era of "it's not a crime if the president does it," where Alex Jones can owe billions to the parents of dozens of murdered children and somehow not have to pay or give up his assets:

https://www.status.news/p/infowars-the-onion-alex-jones-ben-collins

But when it comes to a "post-politics that is neither right nor left," the definition I turn to most often comes from science fiction writer Steven Brust, who once told me:

"Left" and "right" have had the same meaning since the French Revolution. If you want to know if someone is on the left or the right, ask them, "What is more important: human rights or property rights?" If they say "Property rights are a human right," then they are on the right.

https://pluralistic.net/2021/03/16/wage-theft/#ppp

That's it. That's the crux. If you think that property rights are a tool for achieving human rights, then you're on the left. You might support the right of farmers to block attempts to expropriate them via eminent domain in order to build a data center, or the right of people to not have their homes or devices searched by cops, or a library's right to own and archive digital books, even if the publishers insist that ebooks are never "sold," merely "licensed."

If property rights are a tool to achieve human rights, then property rights can be set aside when they impede other rights. Human beings have the right to health care, which is why we should have taken away the pharma companies' patents and copyrights, ending vaccine apartheid and letting the poor world make its own vaccines:

https://pluralistic.net/2021/05/25/the-other-shoe-drops/#quid-pro-quo

Human beings have the right to shelter. If your town has a million empty homes and a million homeless people, there's an obvious solution. At the very least, you can tax the shit out of empty homes to discourage the creation of derelict, empty blights:

https://www.liverpoolecho.co.uk/news/liverpool-news/owners-homes-left-empty-more-28622796

Human beings have the right to food. If a cartel claims that you may not legally sell your 100,000lbs of nectarines, you can just give them away and tell the cartel to fuck off:

https://apnews.com/article/california-farmer-nectarines-lawsuit-patent-4f7bc8ab185e8b9cbdd6d6ad4f2aabd1

As Brust says, this fight is as old as the French Revolution. It's literally the plot of Les Miz ("In days gone by, I stole a loaf of bread in order to live").

Note that this framework leaves plenty of room for disagreement among leftists: we can disagree about who should get taxed and how, when a company should be ordered to destroy its ill-gotten loot and when that loot should be divided up among its victims, and what to do about empty houses and homeless people. We can disagree about reparations, about collectivization and co-operatives, about land reform. Very (very!) few leftists want to abolish property, but to be a leftist is to agree that property is only ever a means, and never an end.

In systems thinking, we are counseled that the most profound and durable changes come from shifts in paradigms, from which all rules, laws and arrangements flow:

https://pluralistic.net/2026/05/12/donella-meadows/#paradigmatic

"Left" and "right" represent two radically different paradigms. The right's paradigm is that property rights are human rights, which cashes out to "property rights are the only human right." If property rights are a human right, then I can burn down my orchard and laugh as you starve outside the gates. If property rights are human rights, I can leave an apartment building empty while you freeze to death on its sidewalk. If property rights are human rights, I can fill my factory with death-traps and insist that the workers I kill freely chose to assume that risk (as economists would say, they have a "revealed preference" for being killed at work):

https://pluralistic.net/2026/03/30/players-of-games/#know-when-to-fold-em

Leftists view property rights as a tool, like laws, or regulations, or polls, or voting. Used well, these tools can produce prosperity for all. But "voting" and "laws" aren't good unto themselves. The Swiss practice of voting on whether your neighbors qualify for citizenship is barbaric:

https://www.bbc.com/news/newsbeat-38595807

Good regulations and laws are good, but simply passing any law is stupid and gets you into terrible trouble, even if the stupid law you've passed is designed to solve a real problem:

https://pluralistic.net/2026/06/23/destroy-the-village/#to-save-it

Viewed as tools, property rights are perfectly useful ways of achieving the primary purpose of a civilization: to safeguard the human rights of its people. Viewed as ends unto themselves, property rights are a terrible danger to our civilization and species.

If you believe property rights are tools, then you can pass laws banning corporations from electioneering:

https://sos.mn.gov/media/3k4hu2if/minnesota-election-laws-statutes-and-rules.pdf

If you believe property rights are human rights, then you end up supporting unlimited dark money spending in elections:

https://www.supremecourt.gov/opinions/25pdf/24-621_h315.pdf

If you believe property rights are tools, you can order landlords who want to ban their tenants from installing balcony solar to fuck off. If you believe property rights are human rights, then landlords can force their tenants to pay every dime the fossil fuel industry demands of them. "Property right as tool" allows you to defend a farmer's right to install a wind-farm, and still, to block a data-center from installing a gas turbine on its own land.

"Post-political" movements are made up of people who don't know what politics are. A "centrist" is ultimately a rightist, because the foundation of rightism is the supremacy of property. It is the ideology that breeds hereditary aristocracy ("property is a human right" means that it's a violation of your human rights to expect you to work for a living if you emerged from a lucky orifice). It's the ideology that breeds oligarchy.

Politics aren't a bunch of cultural signifiers or identity markers. Politics aren't about who rules – it's about whether we are ruled at all, or whether we are free.

(Image: Lewis Clarke, CC BY-SA 2.0, modified)


Hey look at this (permalink)



A shelf of leatherbound history books with a gilt-stamped series title, 'The World's Famous Events.'

Object permanence (permalink)

#25yrsago Why Microsoft was invited to OSCON https://web.archive.org/web/20010701102931/http://www.oreilly.com/news/osconint_0601.html

#25yrsago The Extent of Systematic Monitoring of Employee E-mail and Internet Use https://web.archive.org/web/20010711204804/http://www.privacyfoundation.org/workplace/technology/extent.asp

#20yrsago BPI: We should be able to cut off your Internet https://memex.craphound.com/2006/07/10/bpi-we-should-be-able-to-cut-off-your-internet/

#20yrsago Technology for parents to spy on kids https://web.archive.org/web/20060711084212/http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/07/09/BIGMOTHER.TMP

#20yrsago Dale Bailey's "The Resurrection Man" https://memex.craphound.com/2006/07/09/southern-gothic-science-fiction-collection/

#10yrsago A law prof responds to students who anonymously complained about #blacklivesmatter tee https://backspace.com/notes/2016/07/law-professors-response-to-black-lives-matter-shirt-complaint.php

#10yrsago UK government rejects Brexit do-over petition with 4.1m signatures https://web.archive.org/web/20160709101514/https://www.independent.co.uk/news/uk/politics/brexit-government-rejects-eu-referendum-petition-latest-a7128306.html

#10yrsago New Zealanders raise millions to buy beach and donate it to the public https://www.bbc.co.uk/news/world-asia-36759321

#10yrsago Jughead: Zdarsky’s reboot is funny, fannish, and freaky https://memex.craphound.com/2016/07/10/jughead-zdarskys-reboot-is-funny-fannish-and-freaky/

#5yrsago Biden's Right to Repair will include electronics, too https://pluralistic.net/2021/07/10/unnixing-the-fix/#r2r-plus-plus


Upcoming appearances (permalink)

A photo of me onstage, giving a speech, pounding the podium.



A screenshot of me at my desk, doing a livecast.

Recent appearances (permalink)



A grid of my books with Will Stahle covers..

Latest books (permalink)



A cardboard book box with the Macmillan logo.

Upcoming books (permalink)

  • "The Post-American Internet," a geopolitical sequel of sorts to Enshittification, Farrar, Straus and Giroux, 2027
  • "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, April 20, 2027

  • "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2027

  • "The Memex Method," Farrar, Straus, Giroux, 2027



Colophon (permalink)

Today's top sources:

Currently writing: "The Post-American Internet," a sequel to "Enshittification," about the better world the rest of us get to have now that Trump has torched America. Fourth draft completed. Submitted to editor.

  • A Little Brother short story about DIY insulin PLANNING

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