Delaware? What the? Thanks to the recent #panamapapers outbreak, it’s obvious that tax evasion happens all over. Domestically, evading income tax is far easier than you’d imagine.
Great article in the NYT about shady business practices, which happens to be somewhat legal. In essence – both the company and the states win. Until the clamps are tightened from a national level, there’s no reason for LLCs to pay taxes, if they have the choice.
Delaware’s tax laws are a bonanza for the state. At a time when many states are being squeezed by a difficult economy, Delaware collected roughly $860 million in taxes and fees from its absentee corporate residents in 2011. That money accounted for a quarter of the state’s total budget.