How Delaware Became an International Tax Shelter

The Takeaway

Click on the audio player above to hear this interview.

Tax lawyers, international hedge funds, and private equity firms have been moving billions of dollars in cash to the United States. The United States has become one the biggest tax shelter in the world, and the state of Delaware is helping wealthy individuals and multinational companies hide assets and avoid taxes.

Bob Hennelly, an award winning print and broadcast journalist, investigated Delaware's special status and found that states and countries are in a race to the bottom to create tax havens. He says that Donald Trump's tax plan would put an end to corporations stashing cash to avoid taxes.

What you'll learn from this segment:

  • What shell companies in Delaware are being used for.
  • Delaware's role in helping wealthy individuals and corporations hide or lower tax rates.
  • The role of Delaware's Chancery Court in propagating this system.