Older post: Wealth doesn’t trickle down – it just floods offshore
Welcome to the New Brave World!
Major banks and the financial global elite are now confirmed to have as much as $32 trillion in hidden assets stashed away in offshore accounts that are subject to little or no taxation. As a result, around $280 billion is estimated to be lost in tax revenues. In other words, the multi-trillion dollar banks and elite families are avoiding any taxation while forcing United States citizens to foot the bill.
In an interview with the news organization Al Jazeera, Christensen explains just how deep the report goes:
“What’s shocking is that some of the world’s biggest banks are up to their eyeballs in helping their clients evade taxes and shift their wealth offshore … We’re talking about very big, well-known brands – HSBC, Citigroup, Bank of America, UBS, Credit Suisse – some of the world’s biggest banks are involved… and they do it knowing fully well that their clients, more often than not, are evading and avoiding taxes. Much of this activity was illegal.”
This is as much money as the entire annual economic outputs of the US and Japan, combined but this belongs to just 10 million people worldwide who have offshore bank accounts.
John Christensen from the Tax Justice Network, an organisation fiercely critical of tax havens and economist, Richard Rahn, a former Cayman Islands banking regulator and now a senior fellow at the Cato Institute, a libertarian think tank spoke to Al Jazeera.
Rahn says the statistics in the report are bogus.
Richard Rahn: In Defense of Tax Havens