Cass R. Sunstein writes: \u00a0In some circles, \u201credistribution\u201d of wealth has become a dirty word, and recent efforts to make the tax system more progressive have run into serious political resistance, above all from Republicans. But whatever your political party, you are unlikely to approve of the illegal use of tax havens. As it turns out, a lot of wealthy people in the United States, Europe, and elsewhere have been hiding money in foreign countries\u2014above all, Switzerland, Luxembourg, and the Virgin Islands. As a result, they have been able to avoid paying taxes in their home countries. Until recently, however, officials have not known the magnitude of that problem.<\/p>\n
But people are paying increasing attention to it. A vivid new documentary, The Price We Pay<\/i>, connects tax havens, inequality, and insufficient regulation of financial transactions. The film makes a provocative argument that a new economic elite\u2014wealthy managers and holders of capital\u2014is now able to operate on a global scale, outside the constraints of any legal framework. In a particularly chilling moment, it shows one of the beneficiaries of the system cheerfully announcing on camera: \u201cI don\u2019t feel any remorse about not paying taxes. I think it\u2019s a marvelous way in life.\u201d<\/p>\n
Gabriel Zucman, who teaches at the University of California at Berkeley, has two goals in his new book, The Hidden Wealth of Nations<\/i>: to specify the costs of tax havens, and to figure out how to reduce those costs. While much of his analysis is technical, he writes with moral passion, even outrage; he sees tax havens as a \u201cscourge.\u201d His figures are arresting. About 8 percent of the world\u2019s wealth, or $7.6 trillion, is held in tax havens. In 2015, Switzerland alone held $2.3 trillion in foreign wealth. As a result of fraud from unreported foreign accounts, governments around the world lose about $200 billion in tax revenue each year. Most of this amount comes from the evasion of taxes on investment income, but a significant chunk comes from fraud on inheritances. In the United States, the annual tax loss is $35 billion; in Europe, it is $78 billion. In African nations, it is $14 billion.\u00a0\u00a0Parking Money<\/a><\/b><\/p>\n by Rachel Gold<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Cass R. Sunstein writes: \u00a0In some circles, \u201credistribution\u201d of wealth has become a dirty word, and recent efforts to make the tax system more progressive have run into serious political resistance, above all from Republicans. But whatever your political party, … Continue reading \n![\"by](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2013\/04\/20130409_Island-paradise-cEn-1024x727.jpg\")
<\/a>