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View Diary: $100 Billion Tax Fraud: Why isn't this news? (50 comments)

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  •  The Germans have been quite effective in (2+ / 0-)
    Recommended by:
    PBnJ, Mz Kleen

    apprehending those that have broken their laws, and are currently considering whether to extend the prison sentences for tax evasion in order to prevent this in the future.  Why can't we do the same?

    Are Americans less able to enforce our laws than the Germans?  Or just less willing to punish those who break them?

    •  It could be related to the systems at work; (1+ / 0-)
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      Mz Kleen

      the American international tax system is markedly more complicated than most European systems.  IIRC, Europeans have territorial tax systems; Germany only taxes money made in Germany, while America taxes worldwide revenue regardless of where it's made.  We then have a complicated set of credits and deductions to mitigate the double taxation effects.

      So while it may be easy for Germany to pinpoint abusive schemes (money made in Germany, then "smuggled" out of the country), it's harder for American authorities to do the same.  An American would doubtlessly have some decent arguments as to why and how that money found its way to this or that tax haven.

      "[G]lobalization is...increasing the efficiency of resource allocation through stronger capital markets" - Barack Obama

      by burrow owl on Mon Feb 25, 2008 at 05:51:25 PM PST

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      •  This is personal income, (2+ / 0-)
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        PBnJ, Mz Kleen

        not corporate income that we're talking about here.

        And as for the ease of pinpointing the abusers, here's a suggestion.

        Announce that the tax haven either release the names and transfer records of US citizens to tax authorities (as is required of US banks when the deposity earns interest) or face a severing of financial contacts inclduing the prohibition of transfers to or from the tax haven.

        •  These are sophisticated investors, (1+ / 0-)
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          Mz Kleen

          so don't be surprised if we are talking about corporate income.  That said, the principle is basically the same for individuals and corporations.

          "[G]lobalization is...increasing the efficiency of resource allocation through stronger capital markets" - Barack Obama

          by burrow owl on Mon Feb 25, 2008 at 05:59:31 PM PST

          [ Parent ]

          •  Read the (1+ / 0-)
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            exsimo2

            Der Spiegel pieces in reference to Germans investing in "foundations" in Lichtenstein that benefit their own families.  

            Although corprations are legally held to be citizens, as I am aware they rarely have children.

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