The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Large Loophole in the Sun

Jun 22, 2009

The Caymans have about 48,000 people and almost two trillion dollars in their banks. How is that possible? Tourism? No, tourism isn’t doing so well.

But business tricks and maneuvers are doing well. The Caymans is home to thousands and thousands of companies – 12,000 of them located in one building. Is this the largest building in the world? No, it’s just one of the biggest tax scams.

The Caymans is one of those places where U.S. corporations stash their money so they won’t have to pay U.S. taxes.

KBR, the subsidiary of Vice President Cheney’s company Halliburton, is paying at least 21,000 employees by means of a Cayman Island company so they can avoid paying U.S. federal and state taxes and Social Security.

Enron’s executives, before Cheney, found the Cayman Island tax loopholes very profitable.

The IRS estimates that the loss in tax revenue is more than 100 BILLION dollars to the Treasury every year.

President Obama said his administration would close this loophole, proposing, however, to get only 10¢ on the dollar of taxes owed. That still leaves 90% in the hands of these tax crooks.

Trust the politicians to look after their wealthy friends so they can enjoy sun, sand, sea ... and tax breaks.