NEW: Sen. Whitehouse Co-Sponsors Amendment to Fight Offshore Tax Cheats
Friday, March 09, 2012
Senator Sheldon Whitehouse was among three Senators to co-sponsor an amendment that will add powerful new tools to America’s fight against offshore tax havens and help reduce the deficit.
The amendment, which the Senate adopted as part of the surface transportation bill now under consideration, will allow the Treasury Department to take a range of measures against foreign governments and financial institutions that significantly impede U.S. tax enforcement.
“It’s time to put an end to offshore tax abuses that allow tax cheats to profit at the expense of honest taxpayers,” Whitehouse said. “I’m proud to support Senator Levin’s amendment, which will give the U.S. Treasury greater powers to crack down on offshore tax abusers and the banks that aid them.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTUnder Section 311 of the Patriot Act, Treasury can take a range of measures against foreign governments or financial institutions that engage in money laundering. The senators’ amendment gives Treasury the same tools to combat foreign governments or financial institutions that significantly impede U.S. tax enforcement. For example, Treasury could prohibit U.S. banks from accepting wire transfers or honoring credit cards from banks found to significantly hamper U.S. tax enforcement efforts.
RI Public Interest Research Group Associate Ryan Pierannunzi praised the amendement.
“We applaud the U.S. Senate for approving the amendment to the Transportation bill introduced by Senators Carl Levin and Kent Conrad and cosponsored by Rhode Island’s own Senator Sheldon Whitehouse, which would crack down on offshore tax cheats. Our elected leaders have taken the first step toward reining in rampant offshore tax dodging.
The amendment’s provisions had previously been included in the Cut Unjustified Loopholes Act, or CUT Loopholes Act, which Levin and Conrad introduced in February. According to the Joint Committee on Taxation, a similar, earlier version of the legislation would reduce the deficit by $900 million over 10 years by restoring revenue lost to offshore tax havens.
A vote on final passage of the surface transportation bill is expected next week.
