Kerry Reiterates Anti-Tax Haven Rhetoric

by Leroy Baker, Tax-News.com, New York

06 October 2004

Democrat presidential nominee John Kerry has reiterated his pledge to crack down on firms using offshore jurisdictions to avoid US taxes.

Citing recent studies that have apparently shown a large increase in profits booked by US corporations in countries traditionally identified as tax havens, the Kerry campaign team has claimed that earnings sheltered offshore by US firms have jumped 69% under Bush, costing US taxpayers at least $40 billion.

“Because of George Bush’s bad choices, every year, Americans are getting robbed of at least $40 billion in taxes we’re owed,” Kerry accused the president.

Kerry and his running mate, John Edwards, have announced plans to establish a new Office of Offshore Tax Enforcement at the Treasury Department to investigate the offshore tax practices of US corporations which will be given a remit to draft new regulations.

The Democrat nominees also want to prevent firms from avoiding taxes by “taking advantage of complicated international tax rules” and intend to eliminate special tax breaks so companies are taxed the same whether they invest abroad or at home.

“When I’m president, we’ll stop rewarding companies that ship jobs overseas – and we’ll start rewarding companies that create jobs here at home,” declared Kerry.

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