Crack Down on International Tax Havens Now

In the current presidential election campaign, Senators Obama and McCain have proposed reforming international tax loopholes, and cracking down on international tax havens.
Hopefully, this is more than mere campaign rhetoric. Or more of telling voters what they want to hear.
Recently, the IRS attempted to enter into an agreement with a Swiss bank to recover at least some back taxes that were owed for decades. And, it was revealed that one office building in the Cayman Islands was “home” to at least 15,000 U.S. corporations seeking a tax shelter. It was estimated that these corporations would have paid the U.S. treasury billions if such a tax shelter didn’t exist.
Offshore tax havens have always existed and will continue. It’s naïve to think that the IRS can collect every dime owed them. The argument also exists that if corporations are forced to pay more taxes, they will likely lay off workers and/or raise retail prices. The economy will take yet another hit, which it can scarcely afford.

But, through international treaties and agreements, at least some taxes can be recovered. The next president can assert international pressure for tax havens to at least offer some cooperation. Perhaps in return for increased U.S. trade and business. If the next president is seeking tax equity and fairness, as well as a stimulus to a sluggish economy, let’s crack down on international tax havens.