Thursday, September 14, 2006

USAToday: Offshore accounts for the middle class

The ease with which almost anyone can move capitol offshore means avoiding income taxes is not just for the rich anymore, even the middle class can play and according to this article, they are getting involved in a big way. People and capital are becoming much more mobile. This is reason 15 gazillion and one to abolish the federal income tax and switch to a national sales tax.

USAToday Article
"A network of brokers, accountants, attorneys and other providers is increasingly promoting offshore trusts and accounts as a way to avoid lawsuits, creditors and, in some cases, federal and local taxes in the USA. Riding the rapid expansion of the Internet, some parts of the mini-industry are making tax-avoidance techniques — once mainly offered to high-net-worth individuals in private conferences — available online to average Americans.

"This growing access to people who aren't wealthy and are willing to pay a $3,000 fee ... to someone to help hide their assets offshore is getting to be a huge problem," says Sen. Carl Levin, D-Mich., ranking minority member of the Senate Permanent Subcommittee on Investigations, which in August released the latest in a series of reports on potential offshore abuses. "Honest taxpayers get socked with the bill" as tax avoiders transfer assets offshore, Levin said."