Stephen Platt argues that a US Bill intended to restrict offshore tax abuse goes too far, and questions the motives behind its timing
On 17 February, 2007, US Senator Carl Levin introduced the Bill known as the ‘Stop Tax Haven Abuse Act’. It contains provisions aimed at combating what Levin describes as the $100bn (£56bn) per year drain on the Treasury from offshore tax abuse. When Levin introduced the Bill he did so with the stated support of two other senators: Norm Coleman and current Presidential candidate Barack Obama. In a speech in Wisconsin on 22 September, Obama said: “We lose $100bn every year because corporations get to set up mailboxes offshore so that they can avoid paying a dime of taxes in America. Imagine if you got to do that… I will shut down those offshore tax havens and corporate loopholes as President, because you shouldn’t have to pay higher taxes because some big corporation cut corners to avoid paying theirs”. If Obama makes it to the White House, the Bill may gather an unstoppable momentum.
