Tax Havens And Its Effects On America - 1322 Words

In addition to allowing corporations to store billions of untaxed dollars, tax havens are also used to support dictators and undemocratic societies. All dictators like Muammar Gaddafi have had billions of dollars stashed in tax havens all around the world. â€Å"Tax havens are also used as the principal route through which laundered money escapes developing countries.† (Palan) The reason tax havens exist, is for the same reason why they existed 50 years ago; to attract money and investments from around the world. When multibillion dollar corporations put billions of dollars in the banking system, it gives the local economy of that country a little boost. That stored in the banks can now be lent out to people to buy homes, cars, or even start a†¦show more content†¦Corporations have gone far too long without paying taxes. It’s easy to recognize that the main objective of corporations is to make more profit regardless of how it’s done. This greed brought on by the top companies in the world has cost America $100 billion a year. If these companies would like to take advantage of the biggest market in the world, then they should respect the laws put in place for that country. With that being said, we the people, who buy these products, must make a stand and demand that these companies operate fairly. We know how much money is being lost, where it’s being stashed, and what countries are helping this happen. As the most powerful country in the world we must take a lead and implement new international policies that will make corporate tax evasion something of the past. Even with all these reasons on why corporate tax evasions are bad, there are still some arguments saying that the current tax system is fine as it is. These arguments usually derive from the fear of change. People are scared of the actions that these companies will take in order to counter act the new law set by the government. The main argument comes for allowing tax evasion is that corporate tax evasion makes products cheaper for consumers. While this is a possibility, it also doesn’t make sense. The whole reason corporations evade taxes in the first place, is to make as much profit as possible. So why would these corporations