Offshore Corporate Tax Havens:Why Are They Still allowed?

From Hufpo.
A great question, why indeed Mr Obama and Congress! I think it's a prime example of lobbyiest influence on Congress, and why it's screwing up the Nation.

www.huffingtonpost.com..." target="_blank" class="postlink">Offshore Corporate Tax Havens: Why Are They Still Allowed?

Where's the media on this? Guess the rich just get richer!

Cause they are used by the elite and welthy who are the same people who make the laws and run the country --- either directly or by pulling the strings of politicians. The only substantative legislation that ever gets considered is legislation that:

a) directly benefits the wealthy/elite or the companies they own

b) indirectly protects the wealthy/elites

c) redistributes wealth upwards

d) quells, ameliorates or distracts the masses (which is actually a subset of (b)

Never mind1 A pox on Huffpo! The link, she is broken! Aiyeee!

[edit on 7-6-2010 by OldDragger]

Fixed this time for sure...

...Maybe?

[edit on 7-6-2010 by Toadmund]

They are called Loopholes. Obama has pointed out these loopholes are allowing corporations to divert profits to offshore subsidaries and not having to pay taxes as a result.

One of the oldest games in the book.

Which is the problem, there are no laws against a company creating a subsidiary in another country.

Under our current system of laws, It is perfectly legal to do so.

In fact, you or I could do exactly the same.

You could start a corporation tomorrow in Delaware and fly to the Bahamas and start a subsidiary of your corporation there which you could divert profits to.

What is interesting about this topic is that this is the legal definition of Federal income taxes.

They were originally created to tax corporations with off shore/foreign profits made overseas.

Then they used this law to create taxes for our own wages....


Here's the article pertaining to Obama pointing this all out:

WASHINGTON - President Barack Obama vowed Monday to "detect and pursue" U.S tax evaders and go after their offshore tax shelters. In announcing a series of steps aimed at overhauling the U.S. tax code, Obama complained that existing law makes it possible to "pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York. " The president said he wants to prevent U.S. companies from deferring tax payments by keeping profits in foreign countries rather than recording them at home and called for more transparency in bank accounts that Americans hold in notorious tax havens like the Cayman Islands. "If financial institutions won't cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly," Obama said.....

www.msnbc.msn.com...