2016 is coming to an end.  This year has certainly been an eventful one—we have witnessed  several document leaks revealing the closely guarded secrets of the offshore world, and a divisive election where the issue of tax avoidance and offshore loopholes were highlighted by both campaigns.

In April, the Panama Papers gave us 14.5 million documents exposing the offshore dealings of the ultra-wealthy, transnational criminals, multinational companies, and even world leaders.  One question often asked when the documents were released “where are the Americans?” the answer simply is that Americans don’t need to go abroad to set up anonymous shell companies.  It is, unfortunately, much easier for Americans to set them up onshore—in states like Nevada, Wyoming, and Delaware.

There’s been a lot of talk recently about how the tax system is rigged.  More and more we are seeing that wealthy individuals and powerful multinational companies are able to play by their own set of rules.  According to a new report by FACT members Citizens for Tax Justice (CTJ), the Institute on Taxation and Economic Policy (ITEP), and U.S. PIRG, Fortune 500 companies are now holding $2.5 trillion offshore. By shifting their profits to tax havens, these U.S. companies have been able to avoid $718 billion in taxes. The legal loopholes that allow these companies to avoid their taxes are simply unavailable to average taxpayers and small businesses, who can’t afford to hire the lawyers and accountants to move money through shell companies created in tax havens.

The U.S. Treasury Department took a modest step toward countering corporate tax avoidance Thursday night by issuing a new rule aimed at preventing a tax dodging technique known as “earnings stripping.” While FACT members are still in the process of reviewing the 518-page measure, the rule is estimated to close about $600 million per year in offshore tax avoidance loopholes.