October 8, 2015 at 10:00 AM
Trillions of dollars are now stashed in protected tax havens around the world, leaving societies’ bills to those at home. We’ll dig in.
In this Aug. 2, 2012 file photo, local newspapers show stories about the controversial strategy to bail the government out of a financial hole. The Cayman Islands abruptly proposed what amounts to an income tax on expatriate workers who have helped build the territory into one of the most famous or, for some people, notorious offshore banking centers that have tax advantages for foreign investment operations. (AP)
If you’re rich and you don’t want to pay taxes, here’s a way to go. Drop that billion in a secret bank account abroad. It’s illegal, but there are plenty of people who will help you do it. And there are a lot of people who do it. My guest today, Gabriel Zucman, says there are now $7 trillion in personal wealth stashed in tax havens abroad. Seven trillion dollars. That is eight percent of the world’s private financial wealth, not counting yachts and jewels. And who pays the bills that those tax avoiders don’t? Well, you and me. This hour On Point, the shocking scale of global tax evasion today – on trillions.
– Tom Ashbrook
Gabriel Zucman, assistant professor of economics at the University of California, Berkeley. Author of the new book, “The Hidden Wealth of Nations: The Scourge of Tax Havens.” (@gabriel_zucman)