An interesting story from the Las Vegas Review-Journal posted by Richard Murphy on his blog:

Amendment to Obama’s tax break crackdown targets havens at home
John G. Edwards, May 15, 2009

“President Barack Obama’s plan to limit tax breaks for multinational companies will include an amendment that affects alleged tax havens at home, including Nevada and Delaware, a knowledgeable source in Washington, D.C., said.

Obama last week said he would pursue laws that would raise $210 billion over 10 years by eliminating offshore tax breaks that “let companies ship jobs and stash profits overseas.”

The yet-to-be-announced amendment will make sure that U.S. states do not replace offshore countries like Switzerland, Luxembourg and the Cayman Islands as tax havens for wealthy individuals and businesses, the source explained.”

The article goes on to say that under the proposed amendment the Treasury Department would propose a legislative requirement that state officials obtain the identity of corporate owners and their tax identification numbers of any company registering in their states. The documents would be available to the Internal Revenue Service but not to the public.

This sounds a lot like the Incorporation Transparency and Law Enforcement Assistance Act (S. 5926):

“A bill  to ensure that persons who form corporations in the United States disclose the beneficial owners of those corporations, in order to prevent wrongdoers from exploiting United States corporations for criminal gain, to assist law enforcement in detecting, preventing, and punishing terrorism, money laundering, and other misconduct involving United States corporations, and for other purposes. “

introduced May 2008 and co-sponsored by then-Senator Barack Obama.

The work of Senator Carl Levin (D-MI), the Incorporation Transparency Act was reintroduced this past March under the same name and new bill number of  (s.659).  In his remarks at the bill’s introduction Senator Levin commented:

“This bill tackles a longstanding homeland security problem involving inadequate state incorporation practices that leave this country unnecessarily vulnerable to terrorists, criminals, and other wrongdoers, hinder law enforcement, and damage the international stature of the United States.

The problem is straightforward. Each year, the States allow persons to form nearly 2 million corporations and limited liability companies in this country without knowing – or even asking — who the beneficial owners are behind those corporations. Right now, a person forming a U.S. corporation or limited liability company (LLC) provides less information to the State than is required to open a bank account or obtain a driver’s license. Instead, States routinely permit persons to form corporations and LLCs under State laws without disclosing the names of any of the people who will control or benefit from them. “

While it will remain to be seen if this beneficial ownership amendment materializes, this latest development is further evidence that President Obama has remained true to his campaign pledges to crack down on dodgy financial practices and push for greater transparency and accountability in the financial system.

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