🚗 🚙 Turn your trusty old car into trustworthy journalism Learn more

Report: Banks aid offshore tax dodge

Marketplace Staff Sep 11, 2008
HTML EMBED:
COPY

Report: Banks aid offshore tax dodge

Marketplace Staff Sep 11, 2008
HTML EMBED:
COPY

TEXT OF STORY

Renita Jablonski: A Senate subcommittee has found offshore tax abuse costs the U.S. $100 billion a year. Senate leaders will release the full results of their yearlong investigation at a hearing today. Marketplace’s Janet Babin reports from North Carolina Pubic Radio.


Janet Babin: The inquiry comes out of the bipartisan Senate Homeland Security and Governmental Affairs Subcommittee. It accuses Wall Street firms of making it easier for their foreign clients to get out of paying dividend taxes. The panel also says the IRS failed to keep the abuse in check.

Some senators are calling for legislation to take tax-avoidance gimmicks off the market. But former treasury department economist Bruce Bartlett says this zeal to raise tax revenues might impose a hidden cost on us.

Bruce Bartlett: … to the extent we go after them and are successful in doing so, we’re going to reduce investment in the United States by foreigners.

Bartlett says some tax evasion’s inevitable; the price we pay to be a part of the global economy. Executives from Lehman Brothers, Morgan Stanley, Deutsche Bank and the IRS are expected to testify at today’s hearing.

I’m Janet Babin for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.