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Tax Havens Aren’t a Myth
Ronald Reagan always got a laugh from his audiences when he answered his own rhetorical question: “How can you tell when a politician is lying?”
With that famous smile and nod, Regan would reply: “When you see their lips moving!”
That’s what I like to call the Regan Lip Test.
By Reagan’s humorous measure of political truth, the lips of the Rt. Hon. Edward Miliband MP have been flapping wildly in the British wind over the last few days, spreading falsehoods like dandruff on a blue serge suit.
Stealing Obama’s Anti-Tax Haven Play
Earlier this week, Miliband took aim at the British Crown Dependency tax havens, the Channel Islands of Jersey and Guernsey, and the Isle of Man.
I have recommended each of these respected U.K. offshore financial havens, and last November sent Freedom Alliance members a Special Report again endorsing the Isle of Man as a good base for strong asset protection.
Taking an anti-tax-haven page from President Obama’s re-election playbook, Miliband let go with a list of spurious demands.
Among them:
- a crackdown on the legitimate tax havens of Jersey, Guernsey and the Isle of Man.
- forbidding U.K. taxpayers from investing in complex financial products, which he claimed allows them to conceal tax information.
Milibrand surely knows his utterances are false. He was an adviser to former UK PM and Chancellor Gordon Brown, and he also served as Chairman of the Treasury’s Council of Economic Advisers.
If ever there was a case of a politician qualifying for the Reagan Lip Test, Miliband’s anti-tax haven screed would win first prize.
Better Regulations than the U.S or London
The truth is that during Brown’s Treasury tenure, he and Miliband witnessed real self-reform in the three Crown dependencies. These efforts were so successful that U.K. financial havens now have far better financial regulation than those in the City of London or in the U.S. … both true disaster centers where the colossal global financial mess was allowed to fester and explode in 2008.
Over the last 15 years, there has been substantial self-reform in the low tax Crown Dependencies of Jersey, Guernsey and the Isle of Man.
These reform laws include:
- tight financial regulatory controls administered by new supervisory agencies;
- “all crimes” money-laundering and foreign tax evasion statutes;
- extensive banking “know your customer” client surveillance;
- increased cooperation with U.K. and other governments seeking tax and other information about persons and legal entities based on the islands;
- tax information exchange agreements with the U.K., the U.S and many other countries.
No doubt the Right Honorable Mr. Miliband will justify his politically convenient use of the Crown Dependencies as a punching bag. A self-identified socialist, he is a brainy man. Educated at Oxford and the London School of Economics, he also taught at Harvard for two years.
His far-left background may explain his anti-capitalism and anti-free market beliefs, but Miliband of all people has no right to lie about the U.K.’s valuable Crown Dependencies.
Sophisticated Services
These islands impose few or no business taxes and offer even more sophisticated financial services than those found in the fabled City of London. So special are these financial centers that tens of thousands of investors and businesspersons worldwide, including many Americans, use the services of their banks, investment houses, accountants, lawyers, insurance brokers and trust and corporation services located there.
This year I believe that tax havens will become increasingly important – because taxes will certainly rise on both sides of the Atlantic.
Here at home, times are tough and, by my reckoning, they’re about to get tougher. Much hinges on the outcome of the 2012 U.S. Presidential and Congressional elections, not least of which is the freedom of Americans to bank, save and do business where they choose. Money-hungry government will raise U.S. taxes soon and your income will be become more precious than ever before.
My colleague Jeff Opdyke agrees. That’s why he invested hundreds of hours scouring the globe for the world’s 10 highest dividend-yielding blue-chip stocks. If you need income this year, I urge you to take a look at Jeff’s strategy.
In these turbulent times, protecting your income has become a matter of absolute priority. Tax havens and offshore financial planning should be part of your family’s wealth strategy.
Offshore financial centers, including the U.K. Crown Dependencies, offer important options for sound global investing and for strong asset protection.
Faithfully yours,
By Bob Bauman
JD, Chairman, Freedom Alliance
January 2012
Other Posts from the Author
- Are You Among the 23% Entitled to a Second Passport? - May 14th, 2012
- The Real Problem With the French Elections - May 4th, 2012
- The Life of a “Sovereign Individual” - April 24th, 2012
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