Tax evasion helps US corporations steal $180bn from the rest of the world every year


09-11-18 07:42:00,

A new study by top economists and experts found that tax avoidance and evasion translate into hundreds of billions of dollars in unpaid taxes every year, with the money ending up in the pockets of the world’s wealthiest people.

The paper, ‘The Exorbitant Tax Privilege’, was co-written by Thomas Wright and University of California, Berkeley economist Gabriel Zucman, one of the world’s top authorities on tax havens.

Read more

A protester dressed as a panhandling Uncle Sam stands in New York's Time Square © Brendan McDermid

The research shows that almost 50 percent of US multinationals’ profits are currently generated in tax havens, while back in 1970, the number was less than 10 percent. The corporations effectively pay tax rates of 27 percent on profits generated in non-tax havens, and seven percent in tax havens.

According to James Henry, investigative economist and senior advisor at Tax Justice Network, America’s wealthy kleptocrats, tax-dodgers, and particularly multinational companies have been massively parking money offshore. He told RT that by 2017 US multinationals have “accumulated about $2.6 trillion offshore while they didn’t have to pay the 35 percent US corporate tax.”

Since the early 1990s, the rate paid by US non-oil multinationals on foreign profits has fallen from 35 to 20 percent. Similarly, the tax rate paid by US oil companies to foreign governments fell from an average of 70 percent before the 1991 Gulf War to 45 percent. That, according to Zucman and Wright, may reflect “a return on military protection granted by the United States to oil-producing States.”

The US’ accumulated foreign debt exceeds that of any other country, standing at about $8 trillion, or more than 40 percent of the US gross domestic product (GDP). That $8 trillion is the difference between $35 trillion in foreign investments in US assets and $27 trillion in US investments in foreign assets.

READ MORE: Switzerland & United States are the world’s most corrupt nations – report

The study’s authors estimated that almost half of the difference between US returns and foreign returns can be attributed to abnormally low tax rates for American multinationals, thanks to US power and tax havens. Tax privilege translates into about $180 billion per year, or almost one percent of US GDP,

 » Lees verder

How The Trade War Helps Hide Central Bank Sabotage Of The Economy

How The Trade War Helps Hide Central Bank Sabotage Of The Economy

19-09-18 09:02:00,

Authored by Brandon Smith via,

This article was written by Brandon Smith and originally published at Birch Gold Group

Almost every aspect of the global economic downturn, which started ostensibly in 2007-2008 and is still ongoing to this day, can be traced back to the actions and policies of central banks. The Federal Reserve, for example, used artificially low interest rates and easy money to create a supposedly no-risk loan environment. This translated into a vast amount of toxic mortgage debt along with a web of derivatives (Mortgage Backed Securities) attached to that debt.

The Fed ignored all the signs and all the alternative analyst warnings. Agencies like S&P backed the Fed narrative that all was well as they gave AAA ratings to endless toxic market products. The mainstream media backed the Fed by attacking anyone that argued the notion that the U.S. economy was unstable and ready to falter. In that era of economics, the truth was effectively hidden from the public by the system through relatively standard means. Today, things have changed slightly.

Since the 2008 crash, numerous economists and former Fed officials have come out publicly to admit to the culpability of central bankers (sort of). Alan Greenspan first claimed in 2008 that the Fed had “made a mistake” in its analysis and overlooked the potential of a market bubble. Then, in 2013 he came out and admitted all the central bankers KNEW that a bubble was present, but that they believed the markets would self-correct without much damage to GDP or the rest of the economy.

The mainstream financial media went on to blame the Fed for the conditions that caused the crisis, but made excuses for them at the same time. The narrative was that the Fed was blinded by peripheral factors and that it had been ignoring fundamentals. The central bankers had “painted themselves into a corner” with low interest rates, and had done this unknowingly.

This is the same narrative that Alan Greenspan used to dismiss any responsibility on the Fed’s part during the collapse of the market bubble in the 1990’s. Greenspan argued against the idea of raising interest rates in response to the bubble because it would “put the entire economy in peril”.

 » Lees verder