One of the ways that American companies "make" money is to keep capital in off-shore tax havens. Several of those are in U.K. regions such as Jersey and Guernsey.

President-elect Obama is a big supporter of the Stop Tax Haven Abuse Act, which was proposed earlier this year and will go in front of Congress in the next session. No wonder. Its provisions would bring a lot of money into the U.S. Treasury at a time when the total value of the tax base is being eroded by the recession.

According to the Observer, "Obama advisors estimate the measure could raise at least $50bn (£32bn) per year in lost U.S. tax revenues."

Obama and the new Congress will be up against a furious reaction from U.S. companies that "park" money overseas, but with the Democrats holding both houses, it's a good bet that corporate America will get crushed in the battle.

Legislation to get at that $50 billion is an easy way to pick up a lot of money in a brief period. And, it will look especially good to individual tax-payers who are pressed for cash and think Big Business gets off too easy.

Douglas A. McIntyre is an editor at 24/7 Wall St.

In a surprise move, UBS AG (NYSE: UBS) said today that it would end off-shore banking and security services in the U.S.

The decision was disclosed today by Mark Branson, the chief financial officer for UBS Global Wealth Management and Business Banking during testimony before a U.S. Senate hearing on tax havens. According to Bloomberg News, the U.S. Senate Permanent Subcommittee on investigations found that UBS bankers from Switzerland -- who were not licensed in the U.S. -- frequently traveled here to woo wealthy Americans interested in setting up secret Swiss bank accounts or shell companies in tax havens such as the British Virgin Islands.

UBS, Switzerland's largest bank, has estimated 19,000 Swiss accounts for U.S. clients with assets valued at $18 billion, according to the subcommittee's report. Along with LGT Bank of Lichtenstein, UBS allowed U.S. clients who sold their U.S. securities to continue to hold undisclosed accounts and to open accounts in the name of non-US entities that were owned by U.S. clients.