Report: Super Rich Hiding at Least $21 Trillion in Offshore Tax Havens
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Report: Super Rich Hiding at Least $21 Trillion in Offshore Tax Havens

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Report: Super Rich Hiding at Least $21 Trillion in Offshore Tax Havens

When taxes are cut for the rich, that money doesn’t trickle down, it gets funneled offshore, according to a new report. Whereas Uncle Sam goes after you for underpaying your taxes, it is perfectly legal for the super-rich to send their money offshore to evade taxation.

The report, released by James Henry, former chief economist at consultancy McKinsey and an expert on tax havens,  compiled the most detailed estimates yet of the size of the offshore economy in a new report, The Price of Offshore Revisited.

In the report he shows that anywhere from 13 to 20 trillion British pounds have gone to offshore tax havens like as the ones in the Caymen Islands and Switzerland.

From The Guardian:

Their wealth is, as Henry puts it, “protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy”. According to Henry’s research, the top 10 private banks, which include UBS and Credit Suisse in Switzerland, as well as the US investment bank Goldman Sachs, managed more than £4tn in 2010, a sharp rise from £1.5tn five years earlier.

And:

The sheer size of the cash pile sitting out of reach of tax authorities is so great that it suggests standard measures of inequality radically underestimate the true gap between rich and poor. According to Henry’s calculations, £6.3tn of assets is owned by only 92,000 people, or 0.001% of the world’s population – a tiny class of the mega-rich who have more in common with each other than those at the bottom of the income scale in their own societies.

Hence, the reason the world’s economy is in a financial ruin isn’t because regular people need to tighten their belts, it’s because the super-rich are no longer contributing to the system. If the 21 trillion dollars held in offshore accounts were taxed at just 30%, that alone would generate nearly 200 billion in revenue for countries.

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7 Comments

  1. Mary

    July 23, 2012 at 8:26 pm

    Rich people can shelter their money in offshore accounts so that they do not pay their fair share of taxes. The burden for supporting the government falls on the middle class until we become the poor. Why do you think Romney refuses to release his tax returns before 2010. Because it would show where some of his money is hidden.

  2. Erica

    July 23, 2012 at 10:28 pm

    Well said Mary. No wonder they are resisting the tax cut the president is proposing

  3. Michael

    July 23, 2012 at 10:48 pm

    And the Implosion of the “WORLD TRADE CENTER”and subsequent killing of over 3000 people during the ‘911’ Massacre by the Government Not all by Osama Bin Laden was a vehicle to hide Why do You think only the financial buildings were destroyed?

  4. Fig Newton

    July 24, 2012 at 2:22 am

    President Obama has exposed Romney for hiding money in Swiss banks and the Caymen Islands. He also has been after these big money hiders to pay taxes on their hidden incomes. But people are busy worrying about what he is doing and not doing for some folks. He has got to start at the top and work downward. These money hiders are killing us, not President Obama. President Obama has watched these guys run their Ole Boy system and he is hitting them where it hurts them – in their pocketbooks. Anyone who does not vote for President Obama, especially if your are considered middle class or poor, is a fool.

  5. jackie

    July 24, 2012 at 7:06 am

    Romney has over 250 million dollars he wants to be our president why should pay him to help the rich keep their money

  6. Dee

    July 24, 2012 at 8:27 pm

    They all work for the super-rich!

  7. dorothy

    July 24, 2012 at 10:15 pm

    What goes on in the dark will come to the light. Oh, fool your souls will be required by God . Keep it up. If you can live with yourselves stealing and skeeming the go on with your bad selves Gods got you. Slave owners Labor thieves just plain old crooks very sinful. Pray and Vote Obama 2012 ps bring up those income taxes and we wont have any poor among us.

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