Jan 152015
 

An offshore bank is a bank located outside the country of residence of the depositor, typically in a country that provides greater privacy and little or no taxation. Offshore banking is often linked to tax havens for criminals, money launderers and tax cheats. There is an estimated $21 to $32 trillion held in these accounts. Advocates say that if this estimate is correct, our nation’s income inequality is much worse than previously believed. Offshore tax evasion is a global problem and has been called the biggest theft among societies and neighbor states ever committed. It is estimated our Treasury loses at least $280 billion a year in tax revenue from wealthy Americans and companies hiding money in offshore banks. It is difficult to tax the money in these accounts. Although the IRS requires taxpayers to declare offshore bank accounts, many do not. Most offshore banks, protected by secrecy rules, have no legal obligation to report these accounts either. There have been increased efforts to regulate international finance and offshore banks since 9/11, with some success. In 2009, our IRS and Justice Departments fined the Union Bank of Switzerland $780 billion for illegally aiding 17,000 American tax cheats. UBS was required to reveal the names of 4,500 American depositors suspected of evading taxes. The IRS has collected more than $5.5 billion from Americans offered incentives to voluntarily disclose offshore accounts. These incentives include reducing the amount of taxes or penalties owed and amnesty from tax-evasion prosecution.

Pending Legislations:

S.268 – CUT Loopholes Act

H.R.1554 – Stop Tax Haven Abuse Act

I oppose reforming current offshore bank policy and wish to defeat S. 268 & H.R.1554

I support efforts to tax offshore bank accounts and treating certain foreign corporations managed and controlled primarily in the United States as domestic corporations for tax purposes; requiring tax withholding agents and financial institutions to report certain information about beneficial owners of foreign-owned financial accounts; treating swap payments sent offshore as taxable U.S. source income; allow the use of tax return information to evaluate foreign financial account reports; increase penalties for promoting abusive tax shelters and for aiding and abetting the understatement of tax liability, and wish to pass S. 268 & H.R.1554

 Posted by at 12:00 am
Jan 152015
 

We currently have a record-breaking $17 trillion national debt and a moderately-growing federal budget deficit. Still, almost one-quarter of our largest corporations are paying absolutely no federal income taxes at a time when corporate profits are at all-time highs. Many have shipped jobs overseas while hiding profits in offshore bank accounts to avoid paying the taxes they owe. Studies show that 83 of our Fortune 100 corporations use offshore tax havens to avoid paying their fair share of taxes. Nearly 9,000 corporations with billing addresses in the U.S. are registered at a single building in the Cayman Islands, some for decades. A new tax avoidance scheme called corporate tax inversion has recently evolved from this “Bermuda Strategy.” This scheme involves our corporations merging with companies in countries with lower tax rates, mainly in Asia and Europe. While keeping their material operations here, these corporations then re-brand themselves as foreign companies in order to return foreign earnings to the U.S. without paying taxes. President Obama has recently directed the IRS to enact new rules which will ensure these tax inversions became economically unfeasible for many companies, without restricting genuine cross-border mergers. However, both the President and the IRS say anti-inversion legislation is needed to fully accomplish this goal. Critics say it is past time for Corporate America to stop dodging taxes and help pitch in during this time of fiscal crisis. They accuse these firms of enjoying the benefits of residing in the U.S. without equitably contributing to its welfare.

Pending Legislations:

S.250 – Corporate Tax Dodging Prevention Act

H.R.694 – Corporate Tax Fairness Act

I oppose reforming current overseas headquarters policy and wish to defeat S.250 & H.R.694

I support revising rules for the taxation of inverted corporations (i.e., U.S. corporations that acquire foreign companies to reincorporate in a foreign jurisdiction with income tax rates lower than the United States) to provide that a foreign corporation that acquires the properties of a U.S. corporation or partnership after May 8, 2014, shall be treated as an inverted corporation and thus subject to U.S. taxation; eliminating the deferral of tax on the foreign-source income of U.S. corporations for taxable years beginning in 2015; treating foreign corporations managed and controlled in the United States as domestic corporations for U.S. tax purposes, and wish to identify a legislator who will reintroduce a combined version of H.R.694 – Corporate Tax Fairness Act and H.R.4679 – Stop Corporate Inversions Act of 2014 (113th Congress 2013-2014)

 Posted by at 12:00 am
Jan 152015
 

Repatriation of capital is the return of capital from abroad to the country of its origin. To avoid paying taxes, many American corporations do not deposit profits from overseas operations in U.S. banks. These corporations can do this because of the many loopholes in our tax code. These loopholes include the no-tax rule on foreign profits if those profits remain overseas. Today, our largest corporations have at least $1.7 trillion of foreign profits sitting offshore. Many of these companies argue they would repatriate these earnings if those earnings could come home tax-free. They advocate for a territorial taxation system in which companies would pay taxes on U.S. earnings but would be exempt from taxes on foreign income. They say this taxation system would make U.S. companies more globally competitive and encourage hiring and investment here. Opponents argue that all corporate income should be taxed equally. They further point to our need for additional tax revenue. They claim the territorial taxation system would provide an incentive for companies to move more of their operations overseas since those earnings, when repatriated, would be taxed at a lower rate than profits earned domestically.

Pending Legislation: None

I oppose reforming current repatriated corporate policy

I support the territorial taxation system and wish to identify a legislator who will sponsor a bill to tax only the domestic profits of corporations

I support identifying a legislator who will sponsor a bill to tax the foreign and domestic profits of a corporation equally

 Posted by at 12:00 am