Levin: Tax Havens Cheating U.S. Out Of $100 Billion Each Year

Senator Carl Levin (D-Mich.) warned reporters Tuesday that corporations may be cheating the U.S. out of billions by holding their assets in offshore accounts.

Pointing to a contrast between “millions of ordinary Americans fulfilling their legal and civic obligation to pay taxes to Uncle Sam” and “wealthy individuals or profitable corporations, are taking evasive action to dodge the very same obligations,” Levin argued that ordinary families may be forced to pay more to make up the difference.

Levin, speaking at the National Press Club, estimated that nearly $100 billion is lost each year by not closing loopholes, ad noted that the $70 billion in the current budget debate could have been covered if the U.S. was able to tax offshore assets.

The Senator said that some steps have been taken by Congress to mitigate the issue, such as the Foreign Account Tax Compliance Act, which would require banks to disclose accounts opened by American companies or face a stiff 30% withholding tax.

Levin added that he has introduced two key pieces of legislation, the Stop Tax Haven Abuse Act, which would constrict U.S. economic activity with countries that act as tax havens, and the Incorporation Transparency and Law Enforcement Assistance Act, which would force new corporations to disclose who is in charge of them.