Senator Carl Levin Does Not Give UP

Despite the unprecedented response by offshore financial jurisdictions by entering into a flood of tax information exchange agreements, Democrat Senator Carl Levin still is not satisfied. Senator Levin will offer his Stop Tax Haven Abuse Act as an amendment to the Senate Finance Committee's healthcare bill when it reaches the Senate floor, according to a Levin aide.

Under the belief that there are tens of billions of dollars of untaxed revenue offshore, the Tax Haven Abuse Act creates certain presumptions for entities and transactions in Offshore Secrecy Jurisdictions, which the Act will define. The Tax Haven Abuse Act has been criticized as being potentially damaging to the ability for U.S. companies to participate in the global marketplace.

It is unclear how President Obama and the executive branch will react to this tax along to the healthcare legislation. The Tax Haven Abuse Act was backed by President Obama when he was a senator, however, many on the finance committee wish to have the healthcare bill focused on healthcare.

Certainly the policy makers in the international offshore financial centers should keep a close eye on the United States healthcare bill and the aggressive posture of Senator Levin.