Foolish Tax Haven Demagoguery

An article posted at msnbc.com reports on the looming investigation of the building in Cayman with more than 12,000 companies. But congressional investigators also may want to travel to Delaware, where there are 120,000 companies registered at one address and 200,000 companies at another address. There is nothing wrong with lots of company registrations, of course, but politicians cannot resist going for cheap headlines:

A five-storey office block in the Cayman Islands on Wednesday became the unlikely focus of US congressional concern over offshore tax havens as lawmakers ordered government inspectors to fly to the Caribbean to inspect “shady transactions” in the building. Ugland House, a nondescript structure on Grand Cayman island, is home to over 12,000 companies, according to the Senate finance committee. …Mr Baucus has now asked officials from the Government Accountability Office to travel to the Caymans to investigate Ugland House.

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