The founder of US Uncut is ready to take the movement to the next level. Carl Gibson tells me he wants to help shape a simple piece of legislation to end overseas tax havens. Of course, his would not be the first attempt made at such an endeavor. In 2008, Carl Levin crafted the Stop Tax Haven Abuse Act, legislation then-Senator Obama threw his support behind, and which has, like most bills that make sense, been floating in purgatory ever since.
Reportedly, Senator Levin’s chief investigator, Bob Roach, will present updates on the status of STHA during a session called “US Congressional Offshore Initiatives" at the 9th Annual OffshoreAlert Conference in—why not?—South Beach, Florida April 4-6.
But in the meantime, Gibson, working in concert with the Roosevelt Institute’s Cornell chapter, is drafting a streamlined version of an anti–tax haven bill focusing on a clear message. “Mainly, that we’re losing out on upwards of $100 billion every year in lost revenue because of corporate tax dodging and overseas tax havens,” he says.
He hopes to have the bill ready by Tax Day [April 18 this year]. “This will be legislation that makes it illegal for corporations to move income earned within the United States offshore through corporate tax loopholes, so it would close loopholes and it would also force these companies who already have billions overseas to bring that money back to the United States and pay taxes on it.”
I bring up the UK’s attempt at a "super law" to close all tax loopholes. The General Anti-Avoidance Rule (GAAR) would ban the exploitation of any tax loophole, legislation that would be quite the stick in the craw for teams of corporate lawyers charged with the full-time endeavor of scouring laws to help big businesses avoid paying their fair share in taxes. The UK government is still considering the rule, complete with a provision that might guarantee non-prosecution for full disclosure. It’s unclear how aggressive the final law would be, considering the UK government estimates it would generate about £1 billion in extra revenue each year, yet Tax Research UK reports that corporate tax-dodging bleeds £16 billion (PDF) per annum from the country.
I ask Gibson if he’s considered adding such a general loophole ban to his legislation. “That would be ideal,” he says, “especially Bank of America, who has 115 oversees subsidiaries. They’ve got more money and lawyers than God. Those guys are really good at what they do, so I’m sure they can probably find future loopholes.”