Skip to main content

View Diary: Some Things Worth Fighting (Non-violently) For (11 comments)

Comment Preferences

  •  Bill - that's quite a list (1+ / 0-)
    Recommended by:
    Bruce Brown

    There are no laws prohibiting US citizens from placing assets offshore, even all their assets. The US Tax Code for individuals applies to all income producing assets, anywhere in the world. So a US taxpayer who has all their assets in the Cayman Islands, or Bermuda, or the Isle of Mann, owes the same tax as someone who has all their assets in New York. What is required from US taxpayers is a detailed accounting of your offshore assets and reporting those assets to the IRS.

    I agree that those who have violated the current laws should be identified and prosecuted. However, the US should never inhibit the free flow of capital and the freedom of US taxpayers to invest or domicile their assets anywhere in the world. Prohibiting capital flows is the what despots do, not democracies.

    "let's talk about that" uid 92953

    by VClib on Sat Jun 21, 2014 at 11:23:49 AM PDT

    •  Yes to both of these (1+ / 0-)
      Recommended by:
      VClib
      those who have violated the current laws should be identified and prosecuted.
      The US should never inhibit the free flow of capital and the freedom of US taxpayers to invest or domicile their assets anywhere in the world. Prohibiting capital flows is the what despots do, not democracies.
      And all income earned in the US, including interest on deposits of this income, should be subject to US taxes regardless of where it's deposited.

      Fred Upton, Chairman, House Energy Committee: Stop pushing dirty energy, stop blocking clean-energy initiatives. Help lead the transition or retire.

      by Bruce Brown on Sat Jun 21, 2014 at 01:09:38 PM PDT

      [ Parent ]

      •  Bruce - under current law it is (1+ / 0-)
        Recommended by:
        Bruce Brown

        "let's talk about that" uid 92953

        by VClib on Sat Jun 21, 2014 at 01:12:18 PM PDT

        [ Parent ]

        •  Then (1+ / 0-)
          Recommended by:
          VClib

          "Tax shelter" is a deceptive label? Or is it a shelter because IRS can't enforce income reporting?

          Fred Upton, Chairman, House Energy Committee: Stop pushing dirty energy, stop blocking clean-energy initiatives. Help lead the transition or retire.

          by Bruce Brown on Sat Jun 21, 2014 at 03:01:55 PM PDT

          [ Parent ]

          •  The term "tax haven" is used because (0+ / 0-)

            entities like the Cayman Islands, Bermuda, and the Isle of Mann, have no income tax (just like Florida, Texas and some other states). So if you have assets domiciled in one of these tax havens you owe no tax there, but you still owe income taxes to Uncle Sam. There are clearly strategies to reduce federal income taxes, but those aren't enhanced by where the assets are domiciled. Nearly all the real tax shelters went away in the Tax Reform Act of 1986.  

            Why people legally have assets offshore is an issue separate from income taxes. The three main reasons are access to investments that are not available in the US, diversification, and insulating assets from the US civil court system.  

            "let's talk about that" uid 92953

            by VClib on Sat Jun 21, 2014 at 06:58:47 PM PDT

            [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site