Obama calls for international tax reform
WASHINGTON: Barack Obama has called for international tax reform in the wake of the revelations contained in the Panama Papers.
In an unscheduled appearance in the White House briefing room, Obama described the revelations from the leaks as “important stuff” and said the issue of global tax avoidance was a “huge problem”.
Obama’s intervention came the leak of 11.5m files from the Panama-based Mossack Fonseca continued to create uproar and upheaval around the world.
“There is no doubt that the problem of global tax avoidance generally is a huge problem,” Obama told reporters at the White House on Tuesday. “The problem is that a lot of this stuff is legal, not illegal.”
The US president said the leak from Panama illustrated the scale of tax avoidance involving Fortune 500 companies and running into trillions of dollars worldwide.
“We shouldn’t make it legal to engage in transactions just to avoid taxes,” he added, praising “the basic principle of making sure everyone pays their fair share”.
Obama described the revelations as “important stuff ” and highlighted the impact upon ordinary citizens, adding that “a lot of these loopholes come at the expense of middle-class families”.
“Alternatively, it means that we’re not investing as much as we should in schools, in making college more affordable, in putting people back to work rebuilding our roads, our bridges, our infrastructure, creating more opportunities for our children.”