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]