When a bipartisan Senate panel last week lambasted Swiss bank Credit Suisse for helping rich Americans evade billions in taxes, some watching the high-profile hearing couldn’t help but notice an elephant in the room.
The connection? Paul for years has single-handedly blocked an obscure U.S.-Swiss tax treaty that lawmakers, prosecutors, diplomats and banks say makes the difference between U.S. law enforcement rooting out the names of a few hundred fat-cat tax evaders — and many thousands more.
Kentucky’s tea party darling says the treaty infringes on privacy rights. But his critics say Paul’s hold just hamstrings the Justice Department’s tax evasion work.
“Credit Suisse is ready, at this moment, to provide the additional information about Swiss accounts requested by U.S. authorities but has been unable to do so because the U.S. Senate has not yet ratified the protocol,” said Credit Suisse CEO Brady Dougan at a hearing on the topic Wednesday — just after admitting his institution helped Americans evade taxes.