Paul Caron has published an article on the TaxProfBlog, titled “South Dakota’s Tax Avoidance Schemes Represent Federalism At Its Worst”, which discusses the release of the Pandora Papers and ways both Congress and states themselves can react in order to mitigate the negative effects discussed in the papers from being repeated in the future. The article begins as follows:
The Pandora Papers — the trove of more than 11.9 million confidential documents shared with The Washington Post and partner news organizations — shine a light on South Dakota’s role as an offshore financial center.
For the most part, the South Dakota revelations in the Pandora Papers relate to the Mount Rushmore State’s status as a magnet for foreign wealth, including that derived from international drug smuggling and exploitative labor practices. But it’s not just foreigners who are moving money to the “little tax haven on the prairie”: High-net-worth Americans also are shifting billions to South Dakota and a handful of other domestic havens, shortchanging federal and home state tax collectors in the process.
Click here to see the full article: “South Dakota’s Tax Avoidance Schemes Represent Federalism At Its Worst”
Posted by Tristan Baird, Associate Editor, Wealth Strategies Journal