It has been widely reported since at least 2010 that U.S. corporations and the wealthiest Americans have taken advantage of tax loopholes by hiding their assets in offshore subsidiaries (a.k.a. tax havens) in order to avoid paying U.S. income taxes. The amount of money hidden in these tax havens and what the lost revenue means to the American people has not been so widely reported.
According to several sources, including the BBC, the non-partisan Congressional Research Service (CRS) and James Henry, former Chief Economist at McKinsey & Company, the top 1% of wealthiest Americans and corporations have deposited between $21 and $32 trillion in tax havens in order to evade U.S. taxes. The top seven U.S. banks, furthermore, account for over $10 trillion in assets in more than 10,000 overseas subsidiaries. Continue reading “Closing corporate tax havens: The solution to the sequester (and world poverty)”

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