Senator Carl Levin Introduces the Stop Tax Haven Abuse Act

Senator Carl Levin has introduced a bill aimed at stopping tax haven abuse, and he hopes the deficit will cause Washington to seriously think about his proposal. The Stop Tax Haven Abuse Act would close loopholes that allow hedge funds and multinational companies to shelter large amounts of assets by using offshore identities and tax-haven banks.

The bill would force domestic and foreign companies listed on U.S. stock exchanges to reveal tax haven abuse by requiring these companies to disclose the extent of their offshore operations. Additionally, taxpayers would pay taxes on assets deposited into unaccountable offshore banks that are later redeposited into “correspondent accounts” in American banks.

According to the Senate’s Permanent Subcommittee on Investigations, the Treasury loses $100 billion in revenue every year as a result of offshore tax abuse. In ten years, the Treasury loses close to $1 trillion.

See Senate Dem Pitches Tax Haven Abuse Bill As Deficit Reduction, The Huffington Post, Jul. 11, 2011.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.