Congress Moves To Foreclose on Tax Havens
Sen. Carl Levin (D-MI) earlier this month proposed legislation designed to crack down on foreign tax havens, like the Cayman Islands. The bill -- called the “Stop Tax Haven Abuse Act" -- has the Obama Administration's support, with Treasury Secretary Geithner saying the following during a recent House Ways & Means Committee hearing: "We fully support the legislation... on offshore tax centers, and we look forward to working with you as part of the broader effort to address international tax evasion." I don't pretend to know much about this, so I spent some time on the phone with Arnold May, a partner in the tax department of law firm Proskauer Rose. He told me that the legislation, as currently written, would affect both hedge fund and private equity managers, but the former far more than the latter.
