Hey! Can we all send our savings to the Cayman Islands?

It was back in the early 1980s when Ronald Reagan required all savings banks to report interest made on personal savings accounts. Reporting it to the Federal Government and requiring all accounts to show the savers social security number. Making all accounts accountable and responsible for taxing purposes.

Prior to that time, savings and interest that was garnered was largely reported voluntarily. Leaving the tax payer to file taxes on a honor system. A system not regulated before Ronald Reagan took office in 1981.

Since then all savings account had to be attached to a savers SSN number and all savings banks had to report all interest made on personal and business accounts that would be reported on the savers Social Security Number.

So, the Internal Revenue Service would already know what interest you and others made on your bank accounts. So if your interest numbers didn’t show the same as the IRS’s, you had answers to give to the IRS agent.

Now, to the very rich, this was problematic. How was the wealthy saver to save money without paying large sums of money? Thus was born the “Off-shore” savings and investment account. Swiss bank accounts, investment accounts in the Cayman Islands, and other hidden off-shore accounts. All there to hide and savers money and thwart any tax paying requirement. Resisting paying American taxes. And, unfortunately for the United States, losing much needed tax revenue. Thus shorting the operating budget of the United States.

So, if you are rich and need to hide your money legally, send your American made money to an Off-shore account. It’s secret. It costs the investor very little to hide the money. And money stashed away in an off-shore account avoids paying American taxes.

It’s nice to be rich and avoid paying taxes but it takes money that is otherwise used to protect and secure the rich investor. Money used to train and field an American Army, firemen, policemen, coast guardsmen, and others that make the rich investor safe and secure. Thus realizing how good it is to live in the United States. Therefore, most rich live in a safe land on a free ticket to ride. Just make your money and send it to a secret place. Kind of like Hobos riding on a freight train. Riding free and clear. Just don’t get caught.