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The article examines the results of a 2005 tax amnesty law for the offshore profits of large U.S. corporations. The law was justified as a job-creation measure by U.S. President George W. Bush. Pharmaceutical manufacturers, who realized the most profits from the law, have instead laid off tens of thousands of U.S. workers. Multinational corporations are increasingly sheltering their earnings from U.S. taxation.

The article discusses the legislation proposed by U.S. Representative Charles Rangel related to tax break for people living and operating a business in Virgin Islands. The legislation will halt tax audit of those people. It is reported that many beneficiaries of the tax break are those who contribute to Rangel's campaign. Rangel says that his aim is to remove discrepancy between tax payers of Virgin Islands and that of the mainland.

Discusses how U.S. companies experienced dividend increases in 2004 as a result of strong cash flows and a changed tax law which made dividends more attractive to shareholders. Consideration of how the number of negative dividend actions resulted in a low of 64; Reluctance of companies to take steps which reflect financial distress; Claims from Standard and Poor's that 1,745 dividend increases were reported by companies in 2004; How full-year dividend increases demonstrate a higher willingness of U.S. corporations to reward their shareholders; Taxation of dividends at a maximum of 15 percent which is the same rate used for capital gains; Efforts of companies to regard dividends differently due to the changes in the tax law.

Reports that the Justice Department asked a federal judge to shut down the National Audit Defense Network that it says promotes income tax fraud and has bilked the government and 100,000 customers out of at least $500 million. Loss of at least $324 million in taxes by the government; Expansion of tax cheating in the face of a steady erosion in enforcement of the tax laws over the last 15 years; Complaints by customers to the Internal Revenue Service that the business was a scheme to promote fraudulent deductions on tax returns.