U.S Fighting Tax Evaders Overseas While Being a Tax Haven at Home.
Soon after the Panama Papers were released, Washington announced it was launching a crackdown on offshore corruption. President Obama has invoked the Panama Papers as the US Treasury moves to stop corporations from dodging taxes. However, while the US is declaring its intention to fight tax evasion around the world, it is actually fostering tax havens at home. Rather than putting money into offshore locations, corporations are being encouraged to store their wealth in the United States.
Delaware Becoming the New Switzerland
Delaware may be one of the smallest US states; however, it is leading the way in registering some of the country’s top companies, such as Coca-Cola, Google, Wal-Mart and American Airlines.
The New York Times reports that nearly half of all public corporations in the US are incorporated in Delaware. In fact it has more corporate companies than people living in the state – 945,326 to 897,934. According to Anthony Travers, chairman of the Cayman Islands Stock Exchange, the level of secrecy in Delaware is astounding. Currently, companies in Delaware don’t have to have US bank accounts, and there are no requirements to disclose any type of ownership information.
According to Journalist Ernest Wolff, “The Americans have confessed to fighting against tax evasion but they have opened up their accounts to foreign money. What they are doing is they are blackmailing people around the world because nobody knows if they will end up on that list and the only way they can avoid being on that list is by putting their money into the new tax havens of America,”