From: Jurriaan Bendien (andromeda246@HETNET.NL)
Date: Wed May 19 2004 - 17:14:09 EDT
This is quite an interesting clip on the taxation issue: Since the '80s the US has been the largest tax and regulatory haven for non-resident foreign nationals in the world. Starting in the early 1980s the United States was made into the largest tax and regulatory haven in the world for foreign nationals not resident in the US. Today a foreigner can buy the newly issued Reg. S stock of a US company at a discount because the company does not have to register those shares with the Securities Exchange Commission. Foreigners can sell those shares back into the US forty days later without paying any tax on the trading profits to the US government. They can open bank accounts or buy the debt instruments of government and private borrowers and earn interest in the US tax free. This was done pursuant to a deliberate national policy change in the early l980s. At that time many of America's top financial institutions were technically bankrupt. The combination of uncollectible bank loans to the third world and a 20%+ prime rate had put billion dollar holes in the balance sheets of banks and insurance companies. The solution was simple and effective - drop taxes on international capital and watch the money flow back into America's financial institutions. This policy change has been wildly successful, pulling in trillions of dollars of capital into the US economy. It's not surprising therefore to see that Delaware, Wyoming and a number of other states, using the Limited Liability Company ("LLC") - a form of business entity generally requiring less legal formalities than do corporations and that has members rather than shareholders - have received sanction as international tax avoidance structures. The US has numerous tax treaties and, like many nations, complicated, ever-changing tax laws administered by an often confused or irrational tax bureaucracy. If more than $10.000 is taken into or out of the US, outside of normal banking channels, a report must be filed with the customs authorities. Complete article at: http://www.lectlaw.com/filesh/bbg33.htm.
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