CONTACT: Wyeth Ruthven (Rep. Doggett), 202-225-4865
Kathleen Connery 202-226-7639 (Rep. Emanuel)
Kristofer Eisenla (Rep. Levin) 202-225-4961
Adriana Surfas (Rep. DeLauro) 202-225-3661
Doggett, Emanuel, Levin, DeLauro Introducing Bill
to Stop Abuse of Tax Havens
Washington, DC – Representatives Lloyd Doggett (D-TX), Rahm Emanuel (D-IL), Sander Levin (D-MI) and Rosa DeLauro (D-CT) are introducing the Stop Tax Haven Abuse Act, which would curb abuse of offshore tax shelters that cost taxpayers nearly $100 billion a year.
“When offshore tax cheats don’t pay their bills, the burden shifts to families and small business,” said Congressman Doggett, a senior member of the House Ways and Means and Budget Committees, and a long-time foe of offshore tax havens. “Offshore tax evasion makes up more than 40 percent of the present budget deficit. Any balanced budget must correct the imbalance between honest, hardworking taxpayers and the well-heeled and well-lawyered tax cheats who dodge their tax responsibilities.”
“Middle-class taxpayers who play by the rules and pay their fair share deserve a tax code that doesn’t allow wealthy taxpayers to avoid paying taxes by abusing tax havens and tax shelters,” said Emanuel. “This long-overdue legislation will slam the door shut on tax cheats, close numerous loopholes, and help us restore fiscal responsibility.”
“At a time when Congress is working to put our nation’s fiscal house in order, it is simply not acceptable that we allow $100 billion in revenue to go uncollected every year due to abusive offshore tax shelters,” said Rep. Levin. “This legislation will provide a powerful new set of tools to close this most egregious portion of the tax gap.”
“This bill will shut down the loopholes that allow individuals and businesses to use off-shore tax havens to escape paying U.S. taxes. Offshore tax havens and tax shelters will no longer be an option to hide income and assets,” said DeLauro. “The average taxpayer has to meet their tax obligation without benefit of such loopholes. When it comes to paying taxes we need to ensure a level playing field, so every American pays their fair share of taxes.”
In 2006, sunny tax havens shaded $1.34 trillion in American-owned assets from U.S. taxation, up from $796 billion in 2003, according to the Center for International Policy. That’s a 68 percent increase. With only a few clicks of a mouse and less than $1,000, U.S. taxpayers can create dummy corporations and bank accounts in places like the Cayman Islands, the Bahamas, and Bermuda. Experts have estimated that offshore tax evasion by individuals and corporations costs the Treasury $100 billion each year. Revenue lost to tax havens and tax shelters contributes to the $345 billion annual tax gap and to the $248 billion budget deficit.
The Doggett-Emanuel-Levin-DeLauro bill would increase penalties on tax shelter promoters, close offshore tax loopholes, empower the U.S. Treasury Department to act against foreign jurisdictions that impede U.S. tax enforcement, and prohibit the U.S. Trade and Patent Office from issuing patents on devices designed to avoid tax liability. Companion legislation has already been introduced by Senators Levin, Coleman and Obama. The Senate Finance Committee is holding a hearing on Offshore Tax Evasion on Thursday at 10 a.m.
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