Essay about The Biggest Problem The U.s. Government

2297 Words May 18th, 2016 null Page
The biggest problem the U.S. government facing is that it does not know how much money taxpayers own in the Tax Havens. But, no country in this world can force other countries to change their regulations and laws, so the U.S. cannot ask another countries to change their laws to satisfy the U.S.. The effective way to limit the harmful effects is to ask other countries to share the information with the U.S. In May 2009; OECD removed Andorra, Liechtenstein and Monaco from the list of Uncooperative Tax Havens when these jurisdictions agreed to follow the standards of OECD, which include exchanging information. Tax Justice (2005) estimated the whole world might suffer 255 billion revenue cost of tax avoidance made by the individual. To understand how bad Tax Havens used by an individual in the U.S., people have to know the revenue cost of Tax Havens that caused by the individual. Gravelle listed two variables that should be used to estimate the revenue cost, the expected rate of return and tax rate. It is hard to find the real direct foreign investment made by an individual because some of them may not report their foreign investments to the government or use offshores to invest. Table 5 addresses the estimated amount of revenue cost for the U.S. made by an individual in 2014. There are 394,797 million direct investments abroad. Due to the method that individual using in Tax Havens (mention below), Depository Institutions and Finance (except depository institutions) and…

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