John Kerry: Let's close tax evader loopholes

[Mass]

This is about the Panama Trade Agreement. Good to see that dems (some at least) will try to make the treaty more solid. I believe in trade too, but some of the latest treaties signed (some with Kerry's votes) make me queasy.

http://www.politico.com/news/stories/0509/22776.html

he Senate Finance Committee is considering a free-trade agreement negotiated with Panama during the previous administration. Panama is an important regional financial center with a robust economy and both countries can benefit from expanded trade. One looming issue remains, though: many of the factors that contribute to Panama’s economic growth also make it a sanctuary for tax cheats and money laundering – and that needs to be remedied.

The most recent State Department report on financial crimes highlights Panama’s vulnerability to money laundering and tax evasion because of its large number of offshore financial institutions and iron-clad bank secrecy laws. The Organization for Economic Cooperation and Development lists Panama as one of 30 countries that have not conformed to international tax norms. And U.S. efforts to negotiate a tax agreement with Panama have been stalled for seven years.

We have seen plenty of headlines in recent months about the cost to U.S. taxpayers of allowing individuals and corporations to flout tax laws through offshore banking services. Investigators examining the activities of UBS have found that up to 20,000 wealthy Americans used the Swiss bank to evade more than $300 million in taxes. Total U.S. tax losses through offshore tax abuses are estimated at $100 billion a year.

Since the 1980s, when I investigated the infamous Bank of Credit and Commerce International (BCCI), I’ve fought for tougher financial disclosure laws to help eliminate money laundering. During the BCCI investigation, we followed the bank’s trail to Panama, where it exploited bank secrecy laws to launder money for the Colombian drug cartels and Panama’s own military dictator, General Manuel Noriega.

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The advantages of the proposed free-trade agreement with Panama are substantial, and I believe in trade. But as we debate this agreement, its trade merits must be weighed against the necessity of persuading countries that cater to tax evaders, terrorists and drug lords to change the way they do business. This is an essential step in protecting our treasury and our homeland.

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Read more: http://www.politico.com/news/stories/0509/22776.html#ixzz0G9cJKoTN&B