What’s killing the world’s economy? Could it be tax havens for the rich? Phil Ebersole puts together some compelling research.
Offshore tax havens are a bigger factor in the world economy that I ever dreamed. Financial assets held offshore, beyond the reach of effective taxation, are about one-third of the world’s total financial wealth. Over half of all world trade passes through tax havens. Without tax havens, there might not be a world financial crisis.
Such are the conclusions of a new report completed last month for an organization called the Tax Justice Network by a team of researchers headed by James S. Henry, former chief economist for McKinsey & Co., a respected business consulting firm. Among the facts and figures in the report:
- An estimated $21 trillion to $32 trillion were held in secret “offshore” tax havens in 2010. To give an idea of how much that is, the value of the entire U.S. output of goods and services (gross domestic product) in that year was $15 trillion.
View original post 716 more words