Friday Stack: Tax Haven Edition

by Rocket Finance

i-am-not-an-atm

I do not advocate or promote the practice of deliberately breaking the law in order to avoid paying the taxes for which you are legally obligated. Tax fraud is wrong, no matter how oppressive our government becomes. However, I believe that just profits first belong to the companies or individuals who took the risk, made the investment, came up with the idea or worked hard to generate income. Furthermore, I believe that said companies or individuals are well within their rights to pursue any legal means necessary to protect their profits from government. In fact, if a company is not doing all it can to legally avoid taxes, it is not stewarding resources well nor representing the best interests of shareholders.

I readily admit that I don’t know everything there is to know about tax havens or corporate tax law, but it seems to me that if a country truly desires a strong tax revenue base and employment for citizens, the leaders of that country will do all it can to encourage business to set up shop within it’s borders.

Here are some news accounts that will help you to get a good grasp of our government’s recently announced crack down on tax havens.

From Bloomberg, the Obama announcement of his plan to collect an additional $190 billion in tax revenue by closing man corporate loopholes. I wonder how many more Americans will loose their jobs when this $190 billion is removed from the surplus side of corporate books by the IRS?

Not everyone is on board with President Obama’s strategy:

Some members of his own Democrat party are in opposition: from the Huffington Post.

Also from the HuffPo, Republicans defend tax havens. Some believe that it represents the greatest ever tax increase on American corporations and that it places US companies at a disadvantage with foreign business interests.

The last group of people who don’t like the idea are some of the European countries that have been called “tax havens” by the administration. First, they don’t want to lose the revenue (get it? revenue) and secondly, they don’t like being called names. The global elite – not in the conspiratorial sense, but in reference to political leaders who are not bound by borders (UN, IMF, EU, etc.) – want foreign countries to report financial information, including tax information to a higher authority. You see, the effort to redistribute wealth is not limited to “socialist” countries, it is a global objective.

On a side note, noted tax cheats Treasury Secretary Timothy Geithner and House Ways and Means Committee chairman Senator Charlie Rangel are helping Mr. Obama carry out his plan to knuckle down on companies who are using legal means to avoid paying taxes.

What was it we used to say in grade school? Takes one to know one? Or maybe George Orwell said it best in his classic allegory, Animal Farm:

All animals are equal, but some animals are more equal than others.

Have a great weekend!

Photo by: jacreative

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