Regulating Tax Havens in Paradise

| 6/5/2009 2:44:31 PM

The global financial crisis has many calling for reform in the United States, but “demanding more regulation onshore won’t do any good if you can’t regulate in the same way offshore,” Rachel Keeler writes for Dollars & Sense. Keeler reports that “seventy five percent of the world’s hedge funds are based in four Caribbean tax havens: the Cayman Islands, Bermuda, the British Virgin Islands and the Bahamas.”

Calls for reforming the offshore tax havens have been getting louder recently, with political leaders including Barack Obama joining the chorus. “Tax havens,” according to Keeler, “have become the perfect embodiment of suddenly unfashionable capitalist greed.” So far, however, regulations have been woefully lacking, and global financiers, tax haven governments, and their lobbyists are sure to fight regulation every step of the way.

Source: Dollars & Sense

Fritz Margaret
6/11/2009 5:28:06 AM

As the federal government struggles to turn the national economy around, state governments are dealing with the consequences of the slide up close. The California budget has been subject of a lot of coverage over the past year, with a shortfall in the billions. A $20 billion plus shortage is currently the problem it's facing. Governor Schwarzenegger, or the Governator, put forth a few measures to the people of California to get their approval to help the state weather the shortage. They might look into a no faxing payday loan, but that wouldn't be enough money for this huge state budget shortfall. Some of the measures included a few billion in cuts, a freeze on legislative pay raises (that passed), but all tax increases were voted down, so no short term loans will be available for the California budget. Click here to read more:

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