Saturday, April 13, 2013
New York Times, Room for Debate: Global Tax Dodge or Economic Boon?:
The recent disclosure by a journalistic consortium of 2.5 million leaked files from offshore bank accounts and shell companies provided stunning insight into the estimated $21 trillion held in secretive offshore tax havens, like the Cayman Islands.
Are these havens essential to a smooth-running world economy or just a tax dodge that benefits the rich and should be more tightly regulated? Can the U.S. government rein in their use?
- Jack A. Blum (CHairman, Tax Justice Network), Powerful Opposition to Simple Reforms: "Changes in federal law would allow reporting and accounting of profits to be transparent and make the rich pay their share of taxes."
- Douglas Holtz-Eakin (President, American Action Forum), Don’t Fight It if It Helps Competition: "Keeping profits untaxed overseas can keep companies on an even footing with those in growing economies like Brazil."
- Chye-Ching Huang (Tax Policy Analyst, Center on Budget and Policy Priorities), An Unneeded Gift to Corporations: "Tax havens account for 43 percent of U.S. multinationals' overseas profit, but few of their foreign investments or foreign workers."
- David Cay Johnston (Professor, Syracuse University College of Law), Help the IRS Do Its Job: "Get tough with countries that act as tax havens, but also give the IRS the money it needs to track down tax cheats."
- Daniel J. Mitchell (Senior Fellow, Cato Institute), Tax Havens Allow Economic Vitality: "Competition from foreign financial institutions, unfettered by our laws, have held down U.S. tax rates. "