US Plans To Extend Free Trade Agreement to Tax Haven

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This article describes the banking system in Panama which is second only to Switzerland as a tax haven for wealthy corporations and individuals who want to evade taxes and protect their assets from legal claims that might occur. The US government is planning to extend a free trade agreement (FTA) to Panama, and this article explores the rationale. The president argues that the purpose of the FTA is to encourage US exports and increase jobs in the US. Panama is such a small economy that a FTA would have only a small impact on US exports. Apparently, the real motivation is the facilitate the free flow of capital across international borders. The major banks in the world have branches in Panama that benefit from the FTA.

The article provides links to law firms and banks that are prepared to set up offshore banking accounts and/or to enable the establishment of a corporation or trust in Panama. The easiest way to avoid taxes and provide protection for one's financial assets, would be to set up a corporation. You could put all of your financial assets into the corporation and there would be no taxes on the earnings. You would have complete control over the earnings and the assets of the corporation. Moreover, the assets that are held by the corporation would not be subject to any legal claims that might be directed towards you as an individual.

I think that we should publicize Panama so that everyone could avoid taxes just as the "smart money" does. Only the poor should have to pay taxes.