Enter multiple symbols separated by commas

Commentary: Listen, Feds: Leave UBS Alone!

The US government is going after Swiss banks to hand over their super-secret account details. This is so wrong.
Leave UBS alone. It is hypocritical on the part of our government to do this.

Do you know which country is the biggest tax haven in the entire world? The United States!

Foreigners have more than $4 trillion dollars in passive investments in the form of bank accounts or brokerage accounts in the US, according to Treasury figures that Dan Mitchell from the CATO Institute helped me dig up.

And guess what. The US does not tax interest or passive capital gains on foreigners. Yup, you read that right: The US government gives HUGE tax breaks to foreigners. Why? Because we want their money and we want to attract their capital to our economy.

If a foreign government came to the United States and said "hand over information about all our citizens," we would tell them to go blow smoke. We don't do that. But now Congress wants Switzerland to do the same with UBS . It's wrong.

Tax competition is a good thing. It should happen between states; it should happen between countries. The countries in the world that have the highest rates of tax evasion are the countries with the highest tax rates. That should be a lesson to governments, not a reason to prosecute.

More from Michelle Caruso-Cabrera:

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.