Panama Papers should be lesson to America
The Panama Papers leak has linked European investors to illicit schemes to stash wealth in Panama. But the scandal that has been exposed by a multi-national cooperative effort of journalists should motivate America to overhaul its own leaky tax code.
The U.S. has relatively strict controls on individuals, but it continues to let companies benefit from offshore tax havens.
Documents leaked from a Panamanian law firm has already led to the resignation of Iceland's prime minister who used a Caribbean shell company to avoid having to declare a conflict of interest in official dealings with a company that held interests in failed Icelandic banks.
Other revelations link Vladimir Putin's cronies who stashed fortunes outside of Russia.
American corporations are unscathed by this particular scandal, meaning that their deceptive practices have simply not been exposed.