By Gerry W. Beyer From Law Professor Blogs Network

In the popular imagination, the main tax havens of the world are in exotic locals like the Cayman Islands or the snow capped peaks of Switzerland. But an unexpected contender has become the new tax haven king for the modern day la noblesse, the United States. Lax reporting laws in the U.S. have spurred to move as the ultra wealthy seek anonymity not so much from their home country tax laws as the prying eyes of those who look to take advantage of the holders of the wealth. In addition, the United States offers a stable economy that offers unparalleled security for the assets combined with a variety of state laws that create a diverse ecosystem for those looking for specific vehicles to protect their wealth. However, some are crying foul over the shift as the U.S. has been the long time leader in bringing pressure to bear on countries that had lax reporting laws which allowed U.S. citizens to hide assets from taxation. In any event, the shift does not appear to be ending anytime soon as proposals to tighten reporting requirements have been defeated by the Republican controlled Congress which is not expected to be retaken by Democrats in the upcoming election.

See Jesse Drucker, The World’s Favorite New Tax Haven Is the United States, Bloomberg Business, January 26, 2016.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.