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United States Is A Tax Haven For The World's Elite

United States Is A Tax Haven For The World's Elite

While the United States never has a problem taking a moral high-ground when it comes to countries that allow millionaires and billionaires to shield their money for tax purposes, some critics believe that the country has plenty of similar problems itself. Alongside countries such as Switzerland and Panama, the United States is emerging as a serious tax haven for the world’s elite.

Some states, such as South Dakota and Delaware, are taking serious steps to allow foreigners the privacy they need when it comes to storing their money. The Tax Justice Network’s John Christensen believes that the United States is very much open for business when it comes to tax dodgers stashing their millions.

With papers from a Panama law firm released over the past few weeks, the issue of tax evasion among the world’s wealthy has become a prime issue. While a lot of people are pointing their fingers at Panama and other tax-havens, some are looking at the United States and their willingness to allow foreign money with minimal checks.

The United States is happy to demand that foreign countries and their banks provide information on all Americans to store their money abroad, but they rarely return the favor when asked themselves. They chose not to take part in the 2014 agreement regarding sharing financial information among countries. In fact, some banks in America do not even collect the information necessary to catch tax dodging millionaires.

The Tax Justice Network believes that this lax attitude is creating a huge hole in the world’s attempts to stop tax evasion. Not only are tax dodgers having an easy time storing their money in America, but money laundering is also on the rise because of the lack of checks and regulations.

Experts say that while the United States does comply with information requests regarding foreign citizens who store money in the United States, they do not provide these details on all their foreign clients. This means that another country must suspect an individual of tax fraud and file the relevant information requests with the corresponding American bank before they can access the necessary documents.

Some Swiss banks even state that a number of their customers are talking about moving their money to America, with the Swiss getting more serious about catching tax dodgers. States such as Wyoming and Nevada are the most popular in these cases. It remains to be seen whether the backlash from the Panama Papers will have any impact on how the United States government and its banks deal with tax dodging foreigners.