Don’t get any ideas Delaware

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Excellent news from the Las Vegas Review:

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.

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.

To prevent the corporations from turning to the Silver State and others, the Treasury Department will 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.

They should, of course, be available to the public too. There is no reason why anyone using limited liability anywhere should be afforded anonymity: the very idea is an abuse of human rights. But it is a step forward if it happens, and an important one.