MPs call for Romney’s tax haven to be closed

[kpete]

MPs call for Romney’s tax haven to be closed

Mitt Romney’s week from Hell is about to get worse. On Saturday he was trounced by Newt Gingrich in the South Carolina Primary; tomorrow he will reveal his tax returns for 2010, a move he has been forced into; and now Westminster MPs are calling for his Cayman Islands tax haven to be closed.

The House of Commons Early Day Motion http://www.leftfootforward.org/images/2012/01/Mitt-Romney-tax-haven-edm.pdf (pdf) on “Tax Havens, transparency and the top 1%” states:

“This House notes the OECD and G20’s identification of the role of tax havens by wealthy corporations in fuelling the global economic crisis from 2009 onwards; is alarmed by reports that US former Massachusetts Governor Mitt Romney is also using the Cayman Islands, a British territory, to avoid paying the same tax rate as other US citizens; is concerned about the continued use of tax havens by the top 1% in the US and UK to avoid paying the correct tax in their own country, particularly at a time when living standards are being squeezed and services lost for ordinary working people in many Western economies; and calls on the UK government to introduce urgent legislation to help close tax havens and increase transparency so that the very richest pay their fair share of tax in their respective countries and enable governments worldwide to invest more in jobs and growth.”

The Early Day Motion has been proposed by former treasury select committee member John Cryer, Labour MP for Leyton and Wanstead.

He told Left Foot Forward:

“As a former member of the Treasury select committee, I think it is a disgrace that the Cayman Islands, a tax haven, can enable wealthy corporations and individuals such as Mitt Romney and others in the wealthiest 1% to avoid tax and still be cloaked in secrecy. Meanwhile all across the western world, hard-working people are seeing their living standards and take-home pay stagnate or reduced.

More: http://www.leftfootforward.org/2012/01/mps-call-for-mitt-romney-tax-haven-to-be-closed/
http://thinkprogress.org/economy/2012/01/23/408937/british-romney-cayman-tax-haven/

[HopeHoops]

1. WHAP!

[Ecumenist]

2. A-ha, (as she chuckles), welcome to earth, Mittens

[Richardo]

3. Sweet

Further, any person or corporation sheltering taxable assets offshore should be precluded from bidding or being awarded ANY government contracts.

[notadmblnd]

18. or running for any political office

[ronnie624]

23. Thank you.

Nor should they be able to serve as a 'regulator'.

Close that 'revolving door', damn it!

[xchrom]

4. that's gonna leave a mark. nt

[Scuba]

5. I like the smell of that!

[jonthebru]

6. Me thinks you won't

see much about this in the MSM.

[Ruby the Liberal]

7. Drip, drip, drip.

[katsy]

8. ROFL!

I just love this.

Just hope the media doesn't give him a pass on making only his 2010 sanitized return public. 2011 doesn't matter to me. I want to know what he filed when not running for office.

[Laelth]

9. Excellent. Note the 1% frame used by this resolution.

The Occupy and 99% movements are working.

This is a very good sign.

k&r

-Laelth

[Ebadlun]

10. This won't go anywhere, sadly

Early-day motions are just proposals for debate, or a way of drawing attention to something - very few are actually debated. Even fewer ever result directly in actual legislation.

[BumRushDaShow]

12. Have they ever taken up this subject before?

It would be interesting to know....

I have seen (although not perfect) the 400+ year Swiss Bank Account system exposed and raided (although I still have some thoughts on how far they went). Still... Maybe with all the talk of "austerity", some of these havens can be looked at a whole lot more since the populace has no more $$$.

[SemperEadem]

13. I'd agree with you if the present economic status of

Europe wasn't what is was; but I think with austerity biting down on the EU, this may be the first step towards actual legislation.

What's been de rigueuer in the past most likely won't stand up to scrutiny as "well that's how things are" anymore.

[T_i_B]

20. Correct

Besides, you have to ask the question, how many Labour MP's supporting this will change tack if Romney becomes president and they stand a chance of getting back in power?

Labour poodled to Bush and I'm not convinced that they've really learnt from the Iraq debacle.

[patrice]

11. FREEDOM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

~ ~ ~

[JustABozoOnThisBus]

14. Rich people using the Cayman Islands for tax haven? Shocking!!!11!

The House of Commons is certainly observant.

[LeftishBrit]

15. Good...

but I doubt that anything will really come of it; most Early Day Motions never reach the statute books. But it's good that it's being raised.

[Myrina]

16. Priceless!

[mazzarro]

17. Need explanation about Cayman Islands and its tax haven

Last edited Mon Jan 23, 2012, 10:52 PM - Edit history (1)

Being a British territory, how can Cayman Islands create a tax haven with the acquiescence of the British government? Or is the Cayman Islands a pseudo-independent territory?

[muriel_volestrangler]

19. Yes, 'psuedo-independent' is about right

http://www.state.gov/r/pa/ei/bgn/5286.htm

It has a Governor, who is from the British civil service, but an Assembly and Premier who are elected. The UK controls defence and foreign policy, but they are autonomous for financial matters; unless the UK wants to veto something. If the elected people want a tax haven, they'll have the upper hand in negotiations.

[dipsydoodle]

26. With what's at stake

they could even elect to cease to be a Crown Colony.

Chances of this going anywhere are about the same as me swimming the Atlantic.

[Firebrand Gary]

21. I agree with Ruby. Drip, drip, drip.

Here we go.

[edgineered]

22. Should the motion be debated

as a source of additional revenue, that being the Caymans or any country holding these accounts, are actually potentially losing the 15% that the investor is avoiding in the US. Legislation to tax the investments, charge holding fees or place other requirements on using the foreign banking system, could generate revenue.

Why doesn't this happen, or am I way off track on this?

[Skittles]

24. Cayman has been a tax haven for rich bastards for a long, long time

they're just now getting outraged? I smell bullshit

[PotatoChip]

25. Yay for John Cryer!

I hope they manage to pass this thing.