Cayman Island Office Building Home to 9,000 U.S. Tax Cheats

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Corporate America and its wealthy executive class has had it good under the Bush administration. Not only has it benefited from massive tax cuts, but the Bush administration has stood idle as huge numbers of American companies have set up phony headquarters in the Cayman Islands so better to avoid what little taxes they might have to pay in the U.S. According to a GAO report scheduled for release today, since 2002, the number of American entities reporting a Cayman Island bank account has jumped from 2,677 to nearly 8,000. Suspiciously, investigators traced more than 9,000 American entities that had registered in the Caymans to a single office building.

Past estimates have put the loss of revenue from such schemes at $100 billion. The move to off-shore accounts hasn’t exactly been a secret. But the administration has simply turned a blind eye to it as the IRS has struggled to enforce the law with limited resources. That may change, however. The Senate Finance Committee is holding a hearing on the issue today to consider whether the IRS ought to get some more money and power to make sure that every U.S. corporation pays its fair share. That should come as welcome news to cash-strapped states, which are now facing a whopping $40 billion collective budget deficit, according to the National Conference of State Legislators, leading to widespread cuts in everything from health care services to Maine’s popular fish hatchery program.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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