U.S. senator targets hedge funds with tax evasion legislation
By Lawrence Delevingne
Thu Jul 14, 2011
Carl Levin attacks offshore tax havens once again, hoping to seize on the broader fiscal responsibility battle in Washington. Lawyers say the industry is a “whipping boy” and the legislation is “stupid.”
Forget raising taxes on the very wealthy or slashing government
entitlement programs. There's a much easier way to inject an
extra $100 billion a year into U.S. government coffers and save
the U.S. from default: End offshore tax loopholes and evasion.
That's according to Senator Carl Levin, the
Democrat from Michigan and long time advocate of ending what he
sees as tax loopholes and other lax rules that allow people and
firms to stash money abroad. A new proposal released Tuesday,
the latest in a series of big legislative packages the senator
has proposed on the issue, could have important implications
for the hedge fund industry if it becomes law.
"It would severely impact U.S.-based managers because their
ability to take foreign and tax exempt money would be
substantially hurt," said Phil Gross, a partner specializing in
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