Before the sequestration hatchet comes down on us, I have some suggestions for raising revenue to pay for the war debt:
The treasury loses an estimated $100 billion a year to offshore tax cheats when the largest corporations use the IRS “active financing exception” on overseas profits. While we were all thinking about jumping off the cliff before the election, Congress quietly extended this tax loophole again.
Our richest individuals have as much as $32 trillion of hidden financial assets in offshore tax havens, representing up to $280 billion in lost income tax revenues. This amounts to roughly the U.S. and Japanese GDP combined.
American Samoa, Guam, the Virgin Islands, the Northern Mariana Islands and Puerto Rico get U.S. economic support through programs such as Social Security, Medicaid, welfare checks and food stamps. Who knew?
They pay no taxes to the treasury. Interestingly, the Affordable Care Act will also help these other nations.
Would it not be in our best interests to cut those programs first before we consider our homeland’s national defense programs, teachers and police, and risk economic depression?
We stand helplessly by and watch as our government uses the ax on the poorest and the weakest targets while allowing the rich to get richer.
We need to close the tax loopholes, demand our Congress get back to work and stop playing politics, and protect our nation’s interests.