Tax cheats cost Americans $100 billion

[DogPoundPup]

Source: CNNMoney

WASHINGTON (AP) -- European bankers and some of their U.S. clients can expect a grilling from a Senate panel looking into offshore tax abuses that investigators believe are costing American taxpayers about $100 billion a year.

The questioning, expected at a hearing Thursday, follows the release of a report by the Senate panel accusing the banks of helping commit massive tax evasion and urging tougher laws to combat offshore tax havens around the world.

The 109-page report by the Senate Homeland Security and Governmental Affairs investigations subcommittee took aim specifically at Switzerland's UBS AG (UBS), among the world's largest wealth managers, and Liechtenstein's LGT group, owned by the principality's royal family.

Representatives from UBS and LGT were scheduled to testify, along with some of LGT's U.S. clients.

A federal judge ruled this month that the Internal Revenue Service could serve legal papers on UBS in an expanding probe of U.S. taxpayers who may have used overseas accounts to hide assets and avoid taxes. UBS has said it is cooperating with Swiss and American investigations and will disclose records involving U.S. clients who might have broken tax laws. It also has banned its Swiss bankers from traveling to the United States.

Read more: http://money.cnn.com/2008/07/17/news/tax_evasion.ap/index.htm?postversion=2008071704

[Tandalayo_Scheisskopf]

1. Yeah, well...

When I hear they are going after The Caymans and The Bahamas, then I will know that they really mean it.

[Coexist]

2. closing the loopholes and incentives won't get the back taxes

but at least they will pay their fair share in the future. Hopefully, Obama will make good on that promise.

[Wapsie B]

3. I do not see how the loopholes would ever be closed.

No matter what kind of tax system it would be; whether it's an income tax, national sales tax, or flat tax of some kind, the wealthy will be able to craft the laws enabling their tax pros to skirt around the law.

[Tandalayo_Scheisskopf]

4. This will provide a respite.

A lot of these tax advisors who continue in their positions(because some won't) will be very gun-shy after this.

[rhett o rick]

5. Agree. With 100 billion dollars at stake they will find a way legally or illegally. nm

[sinkingfeeling]

6. About what it would cost to prop up Fannie Mae. (according to an aritcle in Newsweek).

[WriteDown]

7. I am sorry to say...

that a lot of this is small businesses. I used to audit small business tax returns. Almost every single one without fail was JUST breaking even. But the owner, the wife/secretary and every other family member were driving BMW 7 series sedans.

[mtf80123]

8. Link to Live hearing

being broadcast now

http://www.huffingtonpost.com/sen-carl-levin/tax-havens-hearing_b_113266.html

Second panel is now up.

[rudy23]

9. Funny how you won't get a bunch of RW emails about their tax dollars going to waste in this case

It has to be people on welfare, or Katrina evacuees to make their shit list. And of course, it's all about their tax dollars, and has nothing to do with race. (/sarc)

[indepat]

10. Don't suspect Uncle Sam will lose too much sleep over the uber-rich not paying all their taxes

when 'puke tax policies since the Gipper have had the effect of the Federal debt increasing by trillions of dollars and mostly inuring as additional wealth for the uber-rich rather than for uber-rich shoulder a tax load similar to that in almost any other industrialized land. I'm surprised there is even talk of going after uber-rich tax cheats. :D