How Trump managed to inherit $413 million in inflation-adjusted dollars without paying much in the way of gift or estate taxes shows, the super-rich tend to be even more super and rich than the tax returns that economists use to estimate inequality say they are.
According to Berkeley economist Gabriel Zucman and his co-researchers, covers as much as 40 percent of all multinational profits and 50 percent of U.S. ones. To put that in perspective, U.S. companies report more profits in Ireland, the top tax-avoidance destination in the world, than they do in China, Japan, Germany, France and Mexico combined. All of this can be inferred from the fact that foreign firms tend — on paper — to be much more profitable than local ones within these tax havens. Not to mention that multinationals book five times as many profits in their haven subsidiaries as they do in their non-haven ones.
Zucman and his team estimate that around 10 percent of global GDP is being held inside all the different tax havens. It’s not as bad for the United States as it is for a lot of other countries — about half of Russia’s wealth, for example, has been moved out of the country — but it’s enough to increase the top 0.01 percent’s share of household wealth from about 7 percent to almost 8 percent.
That’s over $1 trillion hiding overseas.
In the past eight years, tax fraud cases are down 25 percent.
https://www.washingtonpost.com/business/2018/10/04/inequality-is-worse-than-we-know-super-rich-really-do-avoid-lot-taxes/?utm_term=.dbaf1c945852
According to Berkeley economist Gabriel Zucman and his co-researchers, covers as much as 40 percent of all multinational profits and 50 percent of U.S. ones. To put that in perspective, U.S. companies report more profits in Ireland, the top tax-avoidance destination in the world, than they do in China, Japan, Germany, France and Mexico combined. All of this can be inferred from the fact that foreign firms tend — on paper — to be much more profitable than local ones within these tax havens. Not to mention that multinationals book five times as many profits in their haven subsidiaries as they do in their non-haven ones.
Zucman and his team estimate that around 10 percent of global GDP is being held inside all the different tax havens. It’s not as bad for the United States as it is for a lot of other countries — about half of Russia’s wealth, for example, has been moved out of the country — but it’s enough to increase the top 0.01 percent’s share of household wealth from about 7 percent to almost 8 percent.
That’s over $1 trillion hiding overseas.
In the past eight years, tax fraud cases are down 25 percent.
https://www.washingtonpost.com/business/2018/10/04/inequality-is-worse-than-we-know-super-rich-really-do-avoid-lot-taxes/?utm_term=.dbaf1c945852
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