Sunday, March 22, 2015

Here’s another big, fat, hairy lie being trotted out right now by President Obama, Congress, and the mass media: ‘Offshore tax evasion costs the US Treasury more than $150 billion annually.’

I have written last year a couple of blog posts about this subject.
http://www.nestmann.com/government-stats-strike-again#.VQ0LgU1_lMt
Sadly, the article is from 2014. It is still relevant though- it should be published in mainstream media again and again! But the world believes what they want to believe, and when faced with such debt – even more so and a feeding frenzy ensues.
Funny enough in 2001, it was $70 billion annually. By 2010, the number was $100 billion. According to a recently published Senate report, it’s now $150 billion.
That’s one hell of a jump. Either the rich are totally sticking it to “the man,” or someone has been massaging the numbers just a tad.
Let’s look at the history, shall we?
The $70 billion figure originated with Jack Blum, an attorney and former congressional researcher. Blum cited this figure in 2001, when he signed an affidavit in support of an IRS summons for records from MasterCard and American Express.
He never explained how he arrived at this number…he never had to either or was ever challenged.
Actually, the analysis he makes is a bit of apples and oranges. All of the govt whoppers make the assumption that the money going “offshore” is principle that was never taxed as income. The analysis ignores that and calculates on missed taxation of interest upon the principle.
Those govt/media assumptions are what is scary and is the prejudice that is built into FBAR and OVDP.
http://www.fas.org/sgp/crs/misc/R40623.pdf
Tax Havens: International Tax Avoidance and Evasion
Jane G. Gravelle Senior Specialist in Economic Policy
January 15, 2015
Congressional Research Service
It has quite a history of Obama’s proposals in it. Together with a record of the known things such as Ex Patriot Act.

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