Should U.S. Change Tax Laws to Go After Offshore Tax Havens? Judge Napolitano Weighs In
A report in The Economist proposes reforming U.S. tax laws to bring back an estimated $20 trillion that is stashed away in offshore tax havens. Stuart Varney discussed the idea with Judge Andrew Napolitano this morning on Fox Business Network.
The offshore accounts are
used by people who are trying to avoid paying U.S. taxes on capital gains, interest, and dividends. Varney pointed out that U.S. law states a person must declare those profits on their tax returns.
The judge said it is a "bad law" because the income was not generated in the U.S., "so they have no right to tax it."
He added that taxes can only go so high before people start to take measures to avoid them.
"When taxes get above that point, it's absolutely counterproductive and destructive and human beings will do everything that their imagination conjures to avoid that higher rate," said Napolitano.
Watch the full discussion, including why Varney jokes that the judge would never be able to win an election.