Statement of Senator Barack Obama on the Investigations Subcommittee Report on Dividend Tax Abuse

Statement

Statement of Senator Barack Obama on the Investigations Subcommittee Report on Dividend Tax Abuse

U.S. Senator Barack Obama today released the following statement after the Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations' hearing entitled, Dividend Tax Abuse: How Offshore Entities Dodge Taxes on U.S. Stock Dividends. Today, Subcommittee Chairman Carl Levin released a report on his investigation of dividend tax abuse:

"This report exposes yet another corporate tax abuse that costs American taxpayers billions of dollars each year.

"It is unacceptable for U.S. banks to reap enormous profits by helping foreign investors avoid paying the taxes they owe on dividends earned in this country. We also must close loopholes that allow hedge funds or other entities with shell companies in the Cayman Islands to use financial gimmicks to dodge American taxes. Everyday Americans don't become rich when they avoid paying taxes, and neither should these companies and investors.

"I applaud Chairman Levin for conducting this investigation and I join him in demanding tougher IRS enforcement and new legislation to block these sham dividend tax transactions that distort our tax system and unfairly increase the burden on working families."

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