Sen. Levin announces bill to end the use of offshore tax havens

He said the legislation — which would close tax loopholes used by the wealthy and corporations to store money offshore and avoid paying taxes on it — could help lawmakers replace sequester cuts.

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“If we’re serious about finding a solution to mindless sequestration cuts, we must look at the Stop Tax Haven Abuses Act,” Levin said. “We should close these loopholes and dedicate to revenue to ending sequestration.”

Levin said even if sequestration didn’t exist, Congress should pass legislation to stop these offshore accounts because their sole purpose is “tax avoidance.” He said the accounts “eat at the fabric of society” because they undermine public trust.

“Too many profitable companies see opportunity to avoid paying taxes,” Levin said. “Our determination must be as strong as theirs is to rip off Uncle Sam.”

Levin introduced a similar measure last year, but it went nowhere. Democrats have proposed raising taxes on the wealthy and corporations as a way to pay down the debt and fund federal programs, but Republicans argue that closing some tax loopholes would harm the economy because if businesses pay more in taxes, less money would be invested in new business development.