Using data from the BIS, IMF, World Bank, and governments, former Chief Economist at McKinsey, James Henry, reports the global 1% have deposited $21 trillion to $32 trillion in tax havens to evade taxes. The Federal Reserve reports the US top seven banks have over $10 trillion in assets recorded in over 14,000 created “subsidiaries” to avoid taxes. The 1% hide more than total annual economic output of the US and Japan combined. This hidden wealth is also 7 to 32 times the $1 to $3 trillion estimated to end global poverty. The 1% in US government have reneged on their promise to end poverty since the 1990 World Summit for Children, and even rejects full support of microcredit to end poverty through small business loans to poor self-employed people. Global poverty kills a million children every month. Since the top seven US banks have created at least 10,000 tax havens since 1991, more human beings have died from preventable poverty than from all wars, murders, and violent deaths of any kind in all human history.
Title: 1% hide $21 trillion and US big banks hide $10 trillion; ending world poverty: $3 trillion
Author: Carl Herman
Student Researcher: Lyndsey Casey, Sonoma State University
Faculty Evaluator: Peter Phillips, Sonoma State University