The recent disclosure by a journalistic consortium of 2.5 million leaked files from offshore bank accounts and shell companies provided stunning insight into the estimated $21 trillion held in secretive offshore tax havens, like the Cayman Islands.
Are these havens essential to a smooth-running world economy or just a tax dodge that benefits the rich and should be more tightly regulated? Can the U.S. government rein in their use?The topics of the discussion and links are:
Powerful Opposition to Simple Reforms, here.
JACK A. BLUM, FORMER SENATE AIDE
Changes in federal law would allow reporting and accounting of profits to be transparent and make the rich pay their share of taxes.
Tax Havens Allow Economic Vitality, here.
DANIEL J. MITCHELL, CATO INSTITUTE
Competition from foreign financial institutions, unfettered by our laws, have held down U.S. tax rates.
An Unneeded Gift to Corporations, here.
CHYE-CHING HUANG, CENTER ON BUDGET AND POLICY PRIORITIES
Tax havens account for 43 percent of U.S. multinationals' overseas profit, but few of their foreign investments or foreign workers.
Help the I.R.S. Do Its Job, here.
DAVID CAY JOHNSTON, COLUMNIST
Get tough with countries that act as tax havens, but also give the I.R.S. the money it needs to track down tax cheats.
Don’t Fight It if It Helps Competition, here.
DOUGLAS HOLTZ-EAKIN, AMERICAN ACTION FORUM
Keeping profits untaxed overseas can keep companies on an even footing with those in growing economies like Brazil.
I discuss and link to the report here: Investigative Journalists Report on the Maze of Offshore Accounts as Global Problem (Federal Tax Crimes Blog 4/4/13), here.