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2. Richest Global 1 Percent Hide Trillions in Tax Havens

The global 1 percent hold twenty-one to thirty-two trillion dollars in offshore havens in order to evade taxes, according to James S. Henry, the former chief economist at the global management consulting firm, McKinsey & Company. Based on data from the Bank for International Settlements, the International Monetary Fund, the World Bank, and 139 countries, Henry found that the top 1 percent hid more than the total annual economic output of the US and Japan combined. For perspective, this hidden wealth is at least seven times the amount—$3 trillion—that many estimates suggest would be necessary to end global poverty.

If this hidden wealth earned a modest rate of 3 percent interest and that interest income were taxed at just 30 percent, these investments would have generated income tax revenues between $190 and $280 billion, according to the analysis.

Domestically, the Federal Reserve reported that the top seven US banks hold more than $10 trillion in assets, recorded in over 14,000 created “subsidiaries” to avoid taxes.

Henry identified this hidden wealth as “a huge black hole in the world economy that has never before been measured,” and noted that the finding is particularly significant at a time when “governments around the world are starved for resources, and we are more conscious than ever of the costs of economic inequality.”

Censored #2

Richest Global 1 Percent Hide Trillions in Tax Havens

Carl Herman, “1% Hide $21 Trillion and US Big Banks Hide $10 Trillion; Ending World poverty: $3 Trillion,” Washington’s Blog, July 24, 2012, http://www.washingtonsblog.com/2012/07/1-hide-21-trillion-us-big-banks-hide-10-trillion-ending-world-poverty-3-trillion.html.

James S. Henry, “The Cost of Offshore Revisited,” Tax Justice Network, July 2012, http://www.taxjustice.net/cms/upload/pdf/Price_of_Offshore_Revisited_120722.pdf.

Student Researcher: Lyndsey Casey (Sonoma State University)

Faculty Evaluator: Peter Phillips (Sonoma State University)

 

  • Jack Lohman October 1, 2013

    Of course, because the richest 1% share their profits with the politicians that make it all happen. Yes, corporate greed exists, but political corruption is this nation’s #1 problem. *ONLY* public funding of campaigns will fix it.

  • NickFantastic organisation, saw it tonight on Breaking the Set on RT, very grateful to have found this organisation.I Hughes November 8, 2013

    Saw this article on Abbeys ‘Breaking the Set’ tonight on RT.
    Very grateful to find a website that highlights stories that need to be in the public domain so that those of us who want to know the truth will have an opportunity to read it before the mainstream media sanitises it to the point of fallacy.
    Glad to be here and have your organisation bookmarked.
    All the best,
    Nick in London.

  • Graciano February 18, 2014

    …PRICKS…!

  • R February 26, 2014
  • 1984 March 4, 2014

    As i wait for my overcrowded bus, which will take 2 hours to travel 21 km home, through an overcrowded smog filled city. I am warmed by the feeling that one day these people will have their day of reckoning.

    One day the people of this earth will raise up and redistribute this wealth to employ it for better uses then the selfish desires of these psychotic psycopaths who have raped and pillaged humanity for the past several hundred, if not thousands of years.

    These 1% will fall just like what happened in the French revolution and we’ll see a violent bloody correction.

    One day the Koch Brothers of the world, or their descendants will watch as the mob approach their fortress mansions, and how their security forces flee and collapse despite killing hundreds.

    They’ll hear the doors slam open, shouting, gun shots and then the rush of humanity seeking the justice that these thieves stole from us.

    You know they could with this money have created cities around the solar system. We could have ended poverty, freed billions from the tyranny of labour and meaningless work. We could have had high speed railway transportation systems with that money. We could building renewable energy systems (the gall that they claim there isn’t enough money to to produce 100 terrwatts of renewable energy).

    They have waste the opportunity to further humanity.

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