Thursday, March 26, 2009

As 3 Cabinet nominees have withdrawn from their nominations because of tax problems and "honest mistakes", Senator Levin introduced S.506 - the 2nd version of the Stop Tax Haven Abuse Act (previously the 2007 Obama-Levin bill S.681). The bill targets Panama and other countries as offshore secrecy jurisdictions:

(b) Definition of Offshore Secrecy Jurisdiction- Section 7701(a) is amended by adding at the end the following new paragraph:
`(A) IN GENERAL- The term `offshore secrecy jurisdiction' means any foreign jurisdiction which is listed by the Secretary as an offshore secrecy jurisdiction for purposes of this title....
`(E) INITIAL LIST OF OFFSHORE SECRECY JURISDICTIONS- For purposes of this paragraph, each of the following foreign jurisdictions, which have been previously and publicly identified by the Internal Revenue Service as secrecy jurisdictions in Federal court proceedings, shall be deemed listed by the Secretary as an offshore secrecy jurisdiction unless delisted by the Secretary under subparagraph (F)(ii):
`(viii) British Virgin Islands.
`(xi) Costa Rica.
`(xii) Cyprus.
`(xvii) Hong Kong.
`(xviii) Isle of Man.
`(xix) Jersey.
`(xx) Latvia.
`(xxi) Liechtenstein.
`(xxii) Luxembourg.
`(xxvi) Panama
The Center for Freedom and Prosperity has pointed out that these initiatives only put US business at a disadavantage when they export overseas, because companies from other countries will use the advantage that tax havens provide them, thereby increasing the number of US jobs lost .

In advance of Wednesday's Senate hearing on Tax Haven Banks and U. S. Tax Compliance -- Obtaining the Names of U.S. Clients with Swiss Accounts, Senators Carl Levin (D-MI), Sheldon Whitehouse (D-RI), Claire McCaskill (D-MO), and Bill Nelson (D-FL) yesterday introduced the Stop Tax Haven Abuse Act:
Text of Bill
Summary of Bill
Sen. Levin Press Release
Sen. Levin Statement (Part 1, Part 2)
Talking Points Memo

No comments: