Insight and inspiration in turbulent times.
Just as Congress begins debate on the Republicans’ “Tax Cut and Jobs Act,” new revelations have emerged about how wealthy elites around the world hide their wealth. The “Paradise Papers” — the result of a leak from the Bermuda-based law firm Appleby — shines additional light onto the shadowy world of hidden wealth and tax dodging.
New research suggests that the super-rich are hiding their money at alarming rates. A study by economists Annette Alstadsaeter, Niels Johannesen, and Gabriel Zucman reports that households with wealth over $40 million evade 25 to 30 percent of personal income and wealth taxes.
Since the global financial crisis, tax justice has been rising up the political agenda. In the context of austerity, reporting on corporate and celebrity tax avoidance has achieved unprecedented levels of media coverage.
Establishing a globally agreed tax body under the auspices of the United Nations and putting an end to dubious tax avoidance activities would bolster government revenues and help finance the provision of essential public services, especially in the Global South.
It seems that the rumbling story about HSBC’s Swiss branch has achieved what political pollsters know as “cut through” – meaning that it’s of interest to voters as well as to those reporters who are sentenced to watch Prime Minister’s Questions each week.
