Senate passes Kerry provision to help crack down on offshore tax havens

[karynnj]

Source: Senator Kerry's facebook page

WASHINGTON, D.C. – Senator John Kerry (D-Mass.), senior member of the Finance Committee, today applauded passage of legislation to end blatant tax evasion. Today’s passage of the Hiring Incentives to Restore Employment (HIRE) Act includes legislation from Kerry and Finance Chairman Max Baucus (D-Mont.) that provides the Internal Revenue Service (IRS) new tools to detect, deter and discourage offshore tax abuses that currently allow companies and individuals avoid paying taxes.

“I’ve been at this issue a long time. When I first came to the Senate, I investigated an illegal bank and the murky network that allows powerful people to hide assets abroad and evade our tax laws. It repulsed me that while the average American plays by the rules and pays taxes, some of the biggest corporations avoid paying their fair share. You can even pick up a business magazine and find advertisements for offshore tax havens,” said Sen. Kerry. “Today’s vote is a long overdue and essential step to mitigate this boldface abuse of the American tax code. The HIRE Act can help prevent another UBS scandal but we’ve got more to do in order to fix a broken system.”

In 2009, Kerry and Baucus introduced legislation to close the loophole that allows for offshore tax havens to help taxpayers shirk paying their fair share. President Obama included several international tax reforms as part of his 2010 budget proposal which reflected Senator Kerry's efforts.

Read more: http://www.facebook.com/pages/John-Kerry/6685427293?ref=nf#!/notes/john-kerry/senate-passes-kerry-provision-to-help-crack-down-on-offshore-tax-havens/404858170878

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This was included in the bill passed today. In December 2008, at a MA townhall, Kerry spoke of the need to investigate this further and to end it. Here's the link to it - http://www.youtube.com/watch?v=m5ZlrbkdBNk

Here is a link to a Finance committee hearing where Jack Blum, Kerry's chief of staff in the BCCI investigating days testified on this. The exchanges between him and Kerry are excellent. Here's a page with a link - scroll down to 7/24/2008 and click below the Cayman Island hearing where indicated. http://finance.senate.gov/sitepages/2008hearings.htm

[Chemisse]

1. Very nice work John Kerry

There are so many wrongs that need to be righted and it has been frustrating to see Obama bogged down by health care.

It is great to see this.

[babylonsister]

2. Love it-rec'd! nt

[Cha]

3. Good job, Kerry! Behind the scenes

doing important work and a great member of our Team!

[d_b]

4. K&R

[golfguru]

5. This is very good....however

However what can be done to stop companies from moving their
base of operations abroad? IMO whoever does that should be
subject to extra tariffs and penalties for doing business in US.

[karynnj]

7. Totally different topic, but in 2004, Kerry ran on changing the

tax provisions that actually benefited the "Benedict Arnold" companies who moved their businesses out of the country and instead rewarded "good citizen" companies that kept the jobs here and also did other good things (that I have forgotten). There was a bill introduced that did these kinds of things around 2005/2006 - not sure if it was Kerry's - that Obama co-sponsored. It would be good if the Finance committee pushed something like it.

[SocialistLez]

12. That's what I worry about

I bet some companies will just move their operations in protest.
Conservatives will use it as "proof" higher taxes hurt businesses....Dems will believe them and cave in some form or another.

I'm all for tariffs and penalties.
Can we start with tariffs on goods from China going to Wal-Mart stores? =]

[karynnj]

13. This has nothing to do with that

This is about people who hide their money in places like the Cayman Islands and hide the income made on investing it from the IRS.

[No Elephants]

27. I don't know where you are getting that limitation. But,, if a company were to move from the U.S.,

it would not be subject to this law. It would only have to worry about its new home country finding its Cayman Island accounts and taxing the income. So, there is a relationship between this law and additional incentive to locate outside the U.S.

[elehhhhna]

6. LOL the cheaters were given amnesty. TWICE.

No interest charges, no penalties. 2002-2004 AND last year. Ample time for them all (including every politician in the US) to start their own "charitable foundations". Money laundering and tax evasion are popular rackets.

[karynnj]

8. True, but this is a systematic way to do what we can from the US

to try to make this illegal. Much better than letting it happen and then giving amnesties.

Kerry has been fighting international money laundering since he spent 5 years trying to unravel what BCCI was doing.

[ConcernedCanuk]

9. This don't mean diddly-squat IMO

.
.
.

I admire John Kerry and others like him for their efforts.

However, I believe that the USA is under the power of the Military Industrial Complex,

and will never surrender to peaceful seeking delegates.

If Obama tried to pull back even a portion of the USA's global war-machine;

he'd get politically neutered or assassinated.

USA is a WAR Nation,

and anyone that tries to change that has got to have a death wish.

USA is at war with the World.

Just look at that humongous "embassy" they built in Iraq.

Heck, they were spending millions on that embassy with it's own electrical power plant and water supplies while they were destroying the water supplies and electrical facilities of the people they were "liberating"

USA citizens are living better in Iraq than Iraqis

Something is wrong

[libtodeath]

10. Still burns in my stomach

That Ohio was stolen in 2004. :mad:

[wisteria]

11. Wonderful news. Once again Senator Kerry proves he is a man of the people. n/t

[vaberella]

14. Good stuff.n/t

[David Zephyr]

15. Happy to give this a hearty K&R.

Now hopefully the Democrats and President will make a big PR event about this so they get the credit for this.

This shit resounds with the American People.

One of the first rules of marketing is TELL PEOPLE WHEN YOU HAVE SOMETHING THEY LIKE.

Kudos to the great John Kerry.

[karynnj]

18. Sadly, the only place I found this was Senator Kerry website and

his staff (or he) posted it to his facebook account. The jobs bill itself has not even gotten the coverage it deserved - though the Republicans have said that Jobs was what Obama should have been doing instead of healthcare. Now, they are too busy yelling that we are cheating because we are close to passing a bill they have spent millions (billions?) to kill.

I agree with you that this should be highlighted - and not just because Kerry was one of the two Senators involved. (I would bet the MA papers will not cover it.)

[karynnj]

26. As predicted, the Boston Globe did not cover this

and to add insult to injury, it covered the jobs bill passing with ... yes... yet another picture of Scott Brown, who joined 10 other Republicans voting for it - but who contributed, to my knowledge, exactly nothing to the bill. Maybe because they feel he needs to have his picture printed more often.

I do realize that it is bigger news that Brown voted for it as Kerry was never in doubt.

[blm]

28. Corporate media is staying AWAY from this story....of course it's because it shows who REALLY looks

to protect American jobs and who sides with the financial elite.

[karynnj]

30. Well, the Boston Globe has its priorities - look what they did cover

Scott Brown's NCAA picks! (the comments though are hilarious) http://www.boston.com/news/politics/politicalintelligence/2010/03/browns_picks_fo.html

They say Scott called him, but if Kerry's office put this on their site as a press release - they obviously sent it to them.

[blm]

31. Scott Brown's college picks are FAR MORE IMPORTANT to the American economy and jobs, dontcha know?

Boston Globe wants to be fill in for WaPost as the go-to news outlet for the fascists.

[karynnj]

32. I liked the comments though - bashing both the BG and Brown

I seriously can't believe he is still pushing Obama on playing basketball with him and his daughter. Why would Obama give the Browns any more publicity than they already get?

(I especially loved a comment that expressed clearly faux outrage that JK hadn't put out his picks - not being in touch with MA. )

[naaman fletcher]

16. not to nit-pick, but it doesn't even say what the legislation actually does.

It says it is going to close loopholes, but how? It is already illegal to hide money offshore. It would be interesting to know what they are going to do about it.

[karynnj]

20. Here is the bill that Baucus and Kerry introduced earlier this year

which is very likely similar or identical to the provision:

S.1934
Title: A bill to amend the Internal Revenue Code of 1986 to prevent the avoidance of tax on income from assets held abroad, and for other purposes.
Sponsor: Sen Baucus, Max (introduced 10/27/2009) Cosponsors (2)
Related Bills: H.R.3933, H.R.4213
Latest Major Action: 10/27/2009 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.
Jump to: Summary, Major Actions, All Actions, Titles, Cosponsors, Committees, Related Bill Details, Amendments
SUMMARY AS OF:
10/27/2009--Introduced.

Foreign Account Tax Compliance Act of 2009 - Amends the Internal Revenue Code to revise and add reporting and other requirements relating to income from assets held abroad, including by: (1) requiring foreign financial and nonfinancial institutions to withhold 30% of payments made to such institutions by U.S. individuals unless such institutions agree to disclose the identity of such individuals and report on their bank transactions; (2) denying a tax deduction for interest on non-registered bonds issued outside the United States; (3) requiring any individual who holds more than $50,000 in a depository or custodial account maintained by a foreign financial institution to report on such accounts; (4) imposing an enhanced tax penalty for underpayments attributable to undisclosed foreign financial assets; (5) extending the limitation period for assessment of underpayments with respect to assets held outside the United States; (6) requiring certain tax advisors who assist U.S. individuals in acquiring a direct or indirect interest in a foreign entity to file an information return disclosing the identity of the foreign entity and the individual investors; (7) requiring shareholders of a passive foreign investment company to file informational returns; (8) enhancing tax rules and penalties relating to foreign trusts with U.S. beneficiaries; and (9) requiring withholding of tax on dividend equivalent payments received by foreign individuals.
MAJOR ACTIONS:

***NONE***
ALL ACTIONS:

10/27/2009:
Sponsor introductory remarks on measure. (CR S10785)
10/27/2009:
Read twice and referred to the Committee on Finance.

TITLE(S): (italics indicate a title for a portion of a bill)

***NONE***

COSPONSORS(2), ALPHABETICAL : (Sort: by date)


Sen Kerry, John F. - 10/27/2009
Sen Shaheen, Jeanne - 10/27/2009

COMMITTEE(S):

Committee/Subcommittee: Activity:
Senate Finance Referral, In Committee

RELATED BILL DETAILS: (additional related bills may be indentified in Status)

Bill: Relationship:
H.R.3933 Identical bill identified by CRS
H.R.4213 Related bill identified by CRS

[GreenTea]

17. I have an empty pocket somewhere-in one of my jackets-where they are welcome to hide their millions!

[RoccoR5955]

19. About freakin' time! Nail these bass turds.

They shouldn't only have to pay back taxes and interest, they should go to jail. They are traitors!

[defendandprotect]

21. That's good . . .go Kerry . .

[valerief]

22. Bravo, Senator Kerry, my state's only worthwhile senator!

:woohoo:

[2Design]

23. wonder if that includes ACCENTURE (old jd edwards or enron) and they gave them a contract

Knowing these guys were offshore in Bermuda, and had already fleeced the government, they gave them a contract. They talk out of both sides of their mouth. I know their intentions are good sometimes but they need to look at the rest of what is happening

[karynnj]

25. No - look at the bill that they introduced

among other things it requires withholding of 30% on accounts held offshore. This means the income will be known to the IRS and taxes - higher than the capital gains rate will be withheld - so it is completely in their interest to declare it. (link to post with the bill - http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4310415&mesg_id=4310650 )

Senator Kerry and Senator Baucus have people who know how these things work. Watch the hearing I gave a link to - and you will see some of the process. Baucus put dealing with this on the agenda for the Finance Committee and he came in with a bill. The interaction with the experts, especially Jack Blum, led Baucus and the committee to rethink the process. The result - the bill Baucus and Kerry sponsored.

Now, is it possible that there will be some loop hole found? It would be naive to thing that of anything. But, it should have an impact and I assume they will look for cracks that need repairing. Watching the committee will show you that these are people seriously trying to find a way to do what they can to stop what all of us agrees is bad.

[Jefferson23]

24. K&R

[Oceansaway]

29. K&R...n/t