A political activist who intends to lobby politicians in the US to push for a tax law change that could severely impact Bermuda's booming international business sector has paid a return visit to the Island.

Democrat John Lundin is seeking to have American laws changed to stop US businesses escaping domestic tax obligations by setting up in Bermuda and other offshore jurisdictions.

He claims to be part of a groundswell of support at the grassroots level amongst US Democrats who want to bring a halt to the lucrative advantages offshore businesses, particularly insurance and reinsurance companies, enjoy by setting up headquarters in low tax locations such as Bermuda.

The issue of tax benefits enjoyed by the offshore operations has been a contentious issue with Democrats over the years and was part of the 2004 election platform for former Presidential candidate John Kerry.

The likelihood of the Democrats wielding enough political power to bring in such wide-reaching changes has been increased by the mid-term elections which saw the Democrats take overall control of both Congress and the US Senate.

Mr. Lundin, who hails from Chicago, became a political activist when he moved to Florida where he was a member of the Broward County Florida Democratic Executive Committee.

He then moved to Hawaii where he is on the Hawaii Democratic Party State Central Committee.

As reported in The Royal Gazette last week Mr. Lundin sees himself as part of a grassroots movement to lobby Democrat politicians to make a change to the tax regulations to ensure billions of dollars that escape US tax regulations despite being generated by US-centric businesses is captured by the US Government.

"There is a lot of debt in the US economy at the moment and there is a lot of talk about fixing this situation where billions of dollars are not going back to the US," said Mr. Lundin.

He has visited Bermuda on a number of occasions and confesses to loving the place, but that has not deterred him from taking his patriotic stance.

His intention is to have changes to offshore tax rules presented as a resolution at the Maui County Democrat convention in 2008 and from there to become a Hawaii Democrat Party platform and then to the national convention.

"I'm just a little mouse doing this, but there are a lot of people lobbying all over the States," he said.

Asked what was his motivation for pursuing such a change in tax regulations, Mr. Lundin said he had grown up in a tax-paying, blue-collar worker background and has an aversion to seeing the richer class and companies avoiding taxes.

He said he was surprised to hear Congressman George K. Butterfield, whose father was Bermudian, was fighting the corner for Bermuda when he represents one of the poorest constituencies in the US and he said the people of North Carolina would be amongst the people who would benefit from more corporate taxes being secured by the US Government.

And he also took issue with Finance Minister Paula Cox's assertion that Bermuda "would not presume to suggest to other countries what approach they should take to taxation and, similarly, we would not expect others to criticise our approach".

Mr. Lundin said if that was the case then why was Bermuda intending to visit Washington D.C. to meet American politicians and discuss such matters?