It is an often forgotten fact that the United States is among the minority as a country that taxes citizens on their world-wide income. It is not self-evident that U.S. based corporations should pay tax on foreign income. This is certainly not some kind of global consensus, after all. So it is a tad annoying to listen to the bleating that seems to accompany articles about firms seeking to minimize taxation via offshore structures. Bear in mind, the vast majority of these structures are legal. The phrase “closing a tax loophole” is badly abused in this respect. We could as easily point out that your deductions for interest payments are “loopholes” that need to be “closed.” Likewise, we might insist that the loophole that fails to tax the last 55% of your income be closed.
Be this as it may, the whining from Caribbean nations that has resulted is grating:
Caribbean nations say they will be the economic victims of U.S. President Barack Obama’s proposals to collect more taxes on the offshore transactions of U.S. individuals and corporations.
Caribbean countries have spent decades building up a financial industry to serve companies and individuals from the U.S. and Europe, touting low tax rates, a friendly regulatory environment and proximity to the U.S. financial markets.
Caribbean nations are also the economic victims of drug enforcement efforts though, aren’t they?
Caribbean Nations Squawk At US Plans To Crack Down On Tax Havens [Dow Jones]
Antigua is issuing a new CDS paying off at LIBOR + 1 Lithuanian Hooker to try to increase capital. Not looking good.
The phrase “closing a tax loophole” is a loaded term that lazy journalists use, and it needs to be excised from our language.
“Closing a loophole” means raising taxes, period.
Reminds me, Cyril’s is now awesome again without the fuckwad banker crew.
The old school bitch slap put down on Cuba and the new school teabagging put down on Switzerland should serve as a reminder to these island hoi polloi not to bite the hand that feeds it. Didn’t their mammmas teach them about picking their battles.
Lest we forget, USA Inc. is the biggest corporation in the world. Revenue is down and the printing presses are already at full capacity.
We should just invade the fuckers. Do it Grenada style.
3 Who took their place? Doctors, lawyers, trust fund kids? Not understanding why that would be an improvment. In your mind, that is – I’ve never had a problem.
3 and 6- you guys are regular bonnackers that paddle out in November I take it?
Maybe Antigua should rethink naming a mountain after Obama– “Peak Obama”
6 here. Read carefully. Maybe 3 is a bonnacker, but def not me.
3 and 6 I was there thurs and fri last week, and there were polenty of wall st people in the house enjoynig the new Cyrils Obama-nation, a playoff on the original BBC fools
North Korea will be the new offshore tax haven for the wealthy
O/T: Victoria’s Secret ought to send Maria their latest engineering marvel, she looks today like she could use a crane to hold up the girls.
Bonacker, not to be confused with Banker
Guest @ 3, fuckwad banker here, I enjoyed Cyril’s plenty this weekend. Did you see the douchebags from Boston with the rented black Lambo?
Perfect headline for the story! Props!!
The only loophole left is that they don’t take everything. Oh, wait, we don’t have that one left either.
EP, you’ve got two separate, conflicting ideas going on here. The first idea is that an offshore tax haven is not illegal nor unethical, implying that the island nations will be singled out for no moral reason if Obama cracks down.
The second idea is that the island nations have no right to whine, since they could whine about the drug enforcement too. Except drugs are ILLEGAL, and tax havens are LEGAL.
The story says that the campaign is against INDIVIDUALS who practise tax EVASION. I assume that is ILLEGAL.
But do forgive me for shouting those three words. If you are legally welcome to hide your money in Antigua, and have it regulated by that wonderful actor in the Stanford saga, Leroy, the Grand Regulator and Chief Mixologist of Antigua and Barbuda, by all means do so.