Cayman Island Office Building Home to 9,000 U.S. Tax Cheats.

[rn79870]

Corporate America and its wealthy executive class has had it good under the Bush administration. Not only has it benefited from massive tax cuts, but the Bush administration has stood idle as huge numbers of American companies have set up phony headquarters in the Cayman Islands so better to avoid what little taxes they might have to pay in the U.S. According to a GAO report scheduled for release today, since 2002, the number of American entities reporting a Cayman Island bank account has jumped from 2,677 to nearly 8,000. Suspiciously, investigators traced more than 9,000 American entities that had registered in the Caymans to a single office building.

Past estimates have put the loss of revenue from such schemes at $100 billion. The move to off-shore accounts hasn't exactly been a secret. But the administration has simply turned a blind eye to it as the IRS has struggled to enforce the law with limited resources. That may change, however. The Senate Finance Committee is holding a hearing on the issue today to consider whether the IRS ought to get some more money and power to make sure that every U.S. corporation pays its fair share. That should come as welcome news to cash-strapped states, which are now facing a whopping $40 billion collective budget deficit, according to the National Conference of State Legislators, leading to widespread cuts in everything from health care services to Maine's popular fish hatchery program ~from the mojo blog.

What's up with this? Anyone want to comment?

[AZhitman]

Nice lefty source, with incomplete information.

The GWB Administration's tax cuts of 2003 squeezed more money out of the rich than any other tax code in history -

In fact, it's the most progressive taxation ever in US history, with the lowest wage earners paying an average of 2.3% and the highest paying nearly 50%.

Facts > Panic.

The number of US millionaires doubled under the GWB administration, which is an oft-ignored sign of economic health.

Of course, that could also explain the increase in American entities reporting a Cayman Island bank account.

This ain't a partisan issue.

That said, I DO HOPE The Senate Finance Committee does the right thing, because it IS an issue.

[srellim234]

Don't hold your breath. The Democratic majority in Congress has proven that they are spineless and not willing to do anything but continue the status quo. All bark and no bite.

[rn79870]

Suspiciously, investigators traced more than 9,000 American entities that had registered in the Caymans to a single office building.

Oops, I get it....9001!

[AZhitman]

LOL- nice.

I don't even know where the Caymans are.

However, one can't deny the possibility that there's more to this than the slanted story suggests.

[ishkabibble]

In fact, it's the most progressive taxation ever in US history, with the lowest wage earners paying an average of 2.3% and the highest paying nearly 50%.

Facts > Panic.

Where are you getting these "Facts" from, Greg? nearly everything I've read states that the middle class and the top 1% pay the same net amount of tax, which I believe is about ~20%.

Reality > Theory.

[AZhitman]

Reality > Theory.

Indeed.

"The wealthiest 1 percent of the population earn 19 per­cent of the income but pay 37 percent of the income tax. The top 10 percent pay 68 percent of the tab. Meanwhile, the bottom 50 percent—those below the median income level—now earn 13 percent of the income but pay just 3 percent of the taxes. "

Stephen Moore is senior economics writer for the Wall Street Journal editorial board and a contrib­utor to CNBC TV.

Interestingly, many of the skewed reports bashing the state of our economy (and blaming the White House (ridiculous) are using some absurd numbers...

Like $150,000 being the "upper limits of the middle class"... LOL Like "working poor" being described as under $15,000... LOL

You and I both know numbers are the easiest thing to manipulate to make a point. But the fact is, people who make very little don't pay an inordinate amount in taxes... I do my own taxes and several of my friends' every year, and if they're done right, taking all allowable exemptions and deductions, people who earn less than $30-40K/yr have VERY, VERY little tax liability.

[ishkabibble]

Effective tax rate is a more important number than % of total tax paid. Of course the super-rich are paying a large % of the total. They make exponentially more income.

[skylndrftr]

Nice lefty source, with incomplete information.

Facts are well known to have a liberal bias

The GWB Administration's tax cuts of 2003 squeezed more money out of the rich than any other tax code in history -

Thats not really relevant if you cheat them.

[AZhitman]

Thats not really relevant if you cheat them.

...and cheating on taxes is a partisan thing?