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WEDNESDAY, NOVEMBER 25, 2009
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 OPINION 
3

Time to Forget AIG and Nab Offshore Cash

We're fretting about millions in bonuses, while firms hide billions

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(Newser) – Everyone’s aflutter about the AIG bonuses—but there’s a much more lucrative way to take Wall Street to task than obsessing over $165 million, writes Joe Conason in Salon. The government should instead focus on the billions that financial firms are putting in offshore tax havens. Corporate tax evasion was estimated to cost the US $100 billion 2 years ago—and that number could be low.

Some $12 trillion in untaxed assets is thought to be stashed worldwide. Almost all of the top 100 US firms keep subsidiaries in tax havens, the government says. If the US and its allies crack down on the many such countries around the world, Conason says, we stand to take hundreds of billions globally—money that could help countries pull themselves out of the economic mess.

Seven Mile Beach, Grand Cayman Island is shown. The Caymans host a number of subsidiaries of major US firms.
Seven Mile Beach, Grand Cayman Island is shown. The Caymans host a number of subsidiaries of major US firms.   (AP Photo/Brennan Linsley)
In this Sept. 16, 2008 file photo, a man leaves an American International Group office building in New York.
In this Sept. 16, 2008 file photo, a man leaves an American International Group office building in New York.   (AP Photo/Mark Lennihan)
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If Americans want to make the authors of our misery pay up, then the auditors must go where the money is—and take hundreds of billions back. - Joe Conason

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3 comments
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Reader2795
Mar 23, 09 12:01 PM CDT
Timing is perfect to get all domestic and international tax evaders regardless of entity or financial vehicle being used. Those that want to evade, can always negotiate with a sovereign country leader who has no ties to international aid or commerce to park those untaxed monies, and their bodies there as citizens. Kind of like buyer their way into hell destine to stay their protected and unwanted by the rest of the worlds commerce. It could be said they have finally Made it. Ha Ha Reply
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gianpaul
Mar 23, 09 1:46 PM CDT
Why so many detours? Either you let capitalism function as it always has or go straight to socialism, and the declared variety. If so, then good luck to Obama. But I guess that so much he knows. That's why Geithner said this morning: "the US is not Sweden". Reply
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IN RESPONSE:
radnip
Mar 23, 09 2:55 PM CDT
Yeah, leave the capitalists alone. They don't need welfare, protection, or anything. They can eat and kill each other on their own, without any help from the government. They can exploit their workers on their own also. The best thing the government can do is more deregulation: start with wage and hour. Capitalists should be able to make their workers work as much as the workers want, to keep their jobs!
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