Well, well, what a surprise! A new Tax Justice Network report states that the US, led by Delaware, is the top financial secrecy jurisdiction in the world. What does this mean? Data on financial flows is available only on a national basis, not a state-by-state basis, and the US took in almost double the offshore financial flows Switzerland did in 2007 ($2.6 trillion vs. $1.45 trillion); but it is Delaware that has the most opaque secrecy laws within the US. Delaware has no physical presence requirements (just like the Cayman Islands office building then-Senator Obama excoriated as "either the biggest building or the biggest tax scam on record"), no tax on profits earned outside the state, and no requirement to identify the true owner of a corporation established there.

It's time for the US to get off its high horse, stop the abuses within our borders, and put an end to tax deferral until profits are repatriated.

http://www.talkingpointsmemo.com/news/2009/11/delaware_beats_switzerland_as_most_secretive_finan.php?ref=fpa

http://www.secrecyjurisdictions.com/ explains the TJN project in detail.

http://taxjustice.blogspot.com/2009/10/from-fina.html