Bmda: Lower U.S. corporate taxes make offshore banking less attractive

Congress is expected this month to debate bills that will lower the corporate tax rate in the US – making it less attractive for companies to move offshore to places like Bermuda to lower their tax bills.

Bermuda has been under fire from the US for its low tax regime for years – but the debate has heated up over the past few months with Democratic Presidential front-runner John Kerry slamming companies that move to Bermuda in most of his electioneering speeches.
The impetus behind the debate is a decision by the European Union to impose taxes on a range of US products in retaliation for a tax break for US exporters which could amount to more than $4 billion.

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