Spilling the Beans-Offshore Banking

[teryang]

Reposting this here where there might be more interest:

This is an excellent interview of M. Hudson who cogently explains how the international banking system relies on the "flight" capital of corporate tax cheats, criminals and drug traffickers, and makes honest tax payers indebted to tax avoiders:

An Insider Spills the Beans on Offshore Banking Centers
Standard Schaefer interviews Michael Hudson

http://www.globalresearch.ca/articles/HUD403A.html

<MH: Offshore tax havens enable multinational companies to give an impression that they do not earn any income on business done in countries where taxes are levied at European and North American rates. The reality is that U.S. companies make a lot more money than they report. However, offshore banking centers free them from having to pay taxes on this income, or on capital gains. That's why we're running such high budget deficits today...<snip>

<...the neoliberals have placed their own ideological administrators in these agencies, men who have bragged to me that they simply refuse to regulate to "kill the beast," that is, government, which is supposed to be the economy's guiding brain. Their non-action has corrupted the national legal and regulatory system by disabling it. Power is being wielded by campaign contributors whose wealth has convinced politicians to give tax evaders the right to blackball any regulatory agency who shows himself or herself to be too conscientious in applying the law, above all the tax code.<snip>

<A choice is indeed being forced. If these tax-cheating havens are not closed down, the only people left to tax will be the middle class and employees.>

[German-Lefty]

1. Some Ideas

I believe we have not right to tell the Caymans what banking laws they have to use. We should respect the sovereignty of other nations. This leaves us with the question what can we do within our nation, or within a group of willing nations?

* We could tax all dividends at a company and then refund the taxes to stockholders that prove they pay other taxes here to make this progressive.

* We could tax corporate assets, based on the stock value of the company. My capital tax proposal:
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=516

* We could break up multinational companies into national pieces.

* We could tax corporate transactions with companies which operate outside the western tax and accounting system or not allow a company to list expenses that involve such companies.

I don't want to propose we adopt each of these draconian measures. I'm just saying "hey, we have options".

[teryang]

2. I like all your ideas

The tax is called an intangibles tax. Contrary to one criticism there is a paper trail. It is the perfect flat rate tax because it is progressive. The more you own the more you pay. Typically, it could be administered with exemptions, a minimum exemption that everyone gets, exemptions for those with minor children, funds dedicated to college or medical care of dependents, and exemptions for those retired.