A tax haven is a country that offers foreign companies and individuals relatively low corporate and income tax rates, with a stable political and economic environment. Some tax havens are Switzerland, Hong Kong, Bermuda, Ireland and the Cayman Islands. The United States government is fighting the corporate movement because it is not collecting taxes from corporations that it could have used to reduce the national debt. However, companies have found loopholes that exempt them from U.S. tax law. Companies are moving their headquarters across seas to get tax benefits to keep their shareholders happy. The United States government must reduce its corporate tax system so that the country does not lose more businesses, jobs, and money to foreign entities. Companies have been setting up operations abroad for decades. Bermuda claims to be the first tax haven due to legislation passed in 1935 allowing offshore companies, but this claim to fame is questionable due to similar legislation passed by Lichtenstein in 1926 to attract offshore capital. Switzerland also became a leading tax haven after World War I. While other European countries had to raise taxes to help pay off their war debt, Switzerland, having been neutral during the war, experienced an influx of business. Originally, tax havens were used to avoid personal taxes, but starting in the 1950s, businesses turned to them due to new jurisdictions. The U.S. corporate tax rate is one of the highest tax rates in the world, at around 35%. Countries like Switzerland and Ireland have become the new tax havens. Zug, Switzerland, a small medieval mountain town, has a tax rate of fifteen to sixteen percent, which...... middle of paper ......bsnews.com/stories/2011/ 08/14/60minutes /main20091720.shtml>.Crump, Richard. “A tumultuous story”. Reactions (2008): 4-9. Premier Business Source. EBSCO. Internet. October 1, 2011. “Ireland, the best place for profits for American multinationals. » Finfacts Ireland. Finfacts, and Web. October 9, 2011. Gurría, Angel. “Improve tax fairness and help developing countries.” OCED. Organization for Economic Cooperation and Development, 04/24/2009. Internet. October 9, 2011. Rahn, Richard W. “In Defense of Tax Havens.” Wall Street Journal - Eastern Edition March 18, 2009: A15. Premier Academic Research. EBSCO. Internet. October 1, 2011. Ruggeri, Amanda. “Obama targets offshore tax havens.” US News and World Reports. 04/05/2009: no. page. Internet. October 9. 2011