Jul 24, 2012
Republicans Protect Super-Rich Offshore Tax Havens
As CNN reported yesterday, a new study reveals that the “super-rich had between $21 trillion and $32 trillion of wealth hidden in tax havens.” They found that these assets are “equivalent to, or even larger than, the combined GDPs of the United States and Japan, representing up to $280 billion in lost tax revenues.”
What’s a surprise to no one is that House Republicans have relentlessly protected the ability of these millionaires and billionaires to hide their profits offshore.
- Voted Against Closing Loopholes for Tax Havens. House Republicans opposed a budget that would close “... loopholes that allow businesses to avoid taxes, by subjecting more of their foreign earnings sheltered in tax havens to U.S. taxation.” [H Con Res 112, Vote #150, 3/29/12; Congressional Record, H1783, 3/29/12]
- Voted to Cut IRS Enforcement. House Republicans voted to cut $285 million from IRS enforcement including enhanced tax enforcement. [HR 1, Vote #147, 2/19/11; House Appropriations Committee, H.R. 1 Program Cuts, 2/14/11]
- Voted Against Treasury Investigations. House Republicans opposed giving the Treasury Department greater powers to investigate offshore tax abuses and crack down on offenders and banks that aid them. [HR 4348, Vote #344, 6/6/12; Congressional Record, H3509, 6/6/12]
Read about who House Republicans are protecting for yourself…
Global super-rich hide $21 trillion in tax havens
By Yenni Kwok, CNN
July 23, 2012
http://www.cnn.com/2012/07/23/business/super-rich-hidden-wealth-offshore/index.html
The world's super-rich had between $21 trillion and $32 trillion of wealth hidden in tax havens by the end of 2010, a new study says.
The size of these unreported financial assets is equivalent to, or even larger than, the combined GDPs of the United States and Japan, representing up to $280 billion in lost tax revenues.
The study, titled "The Price of Offshore Revisited," was released Sunday by the advocacy group Tax Justice Network.
Written by James Henry, former chief economist at McKinsey & Co., the study drew data from the World Bank, the International Monetary Fund, the United Nations and central banks.
The number of the global elite who parked their fortune overseas is fewer than 10 million people, or 0.14% of the global population, the report says. It also shows that major private banks such as UBS, Credit Suisse, Goldman Sachs, Bank of America and HSBC handled the most assets on behalf of the super-rich.
According to the group's 2011 Financial Security Index, which ranks nations and territories providing tax havens, Switzerland, the Cayman Islands, Luxembourg, Hong Kong and Singapore are among the biggest destinations.
In a statement, Henry, senior adviser of the Tax Justice Network, said that "it turns out that this offshore sector --- which specializes in tax dodging -- is basically designed and operated, not by shady no-name banks ... but by the world's largest private banks, law firms and accounting firms, headquartered in First World capitals like London, New York and Geneva."
The report also calculates capital flight from 139 developing countries between 1970s and 2010. Of the top 20 developing countries that lost tax revenue overseas, China ranks first, with nearly $1.2 trillion siphoned offshore by 2010. Russia and South Korea follow, with $798 billion and $779 billion missing respectively.
"Since most of missing financial wealth belongs to a tiny elite, the impact is staggering," Henry said. "For most countries, global financial inequality is not only much greater than we suspected, but it has been growing much faster."
The Tax Justice Network says its estimated offshore fortune is conservative, adding it excludes non-financial assets such as real estate, yachts and artworks.
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