Levin recommends closing offshore tax loopholes to reduce the deficit

“When Congress returns after the election, we will hopefully reach agreement on a balanced, comprehensive deficit reduction package,” Levin wrote. “ 'Balanced' means a combination of additional revenues and additional cuts in spending.”

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A group of lawmakers called the “Gang of Eight” is working on a package that would avoid the “fiscal cliff” in January, caused by the sequestration cuts and the expiration of the Bush-era tax rates.

Levin recommended closing 10 offshore tax loopholes in order to reduce the deficit by hundreds of millions of dollars over 10 years.

“Relative to the need for additional revenues, one area where bipartisan agreement should be possible is closing abusive offshore tax loopholes,” the letter stated. “Closing these loopholes would not only produce significant revenue to help reduce the deficit and prevent sequestration, it would strengthen tax fairness and remove tax incentives to move U.S. business, jobs, and profits offshore.”

Levin’s list of 10 offshore tax loopholes included several that would stop multinational corporations from holding assets overseas to avoid U.S. taxes and would give tax enforcement agencies the tools to go after those with tax haven bank accounts.

“Today, U.S. multinational corporations hold as much as $1.7 trillion offshore, and numerous U.S. taxpayers continue to hide assets in offshore bank accounts,” Levin wrote. “Legislation to close abusive offshore tax loopholes is readily available and would raise hundreds of billions of dollars in additional tax revenue over 10 years.”

Levin serves as the chairman of the Senate Permanent subcommittee on Investigations, which has been looking into tax abuses.