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
"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
ISSN: 2151-1845 / CDC10004H
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