The Russian crypto-currency is in its final stretch towards national implementation as the draft law is submitted to the Russian parliament. Continue reading CryptoRuble is Set to Prick on the CryptoBubble
The inaugural World Inequality Report published on Thursday by economists Thomas Piketty, Emmanuel Saez, Gabriel Zucman, Facundo Alvaredo and Lucas Chancel documents the rise in global income and wealth inequality since 1980. Continue reading Richest 1% Capture Twice as Much Income Growth as the Bottom Half
Who avoids the most tax and what does that mean for inequality?
These were the questions asked by two National Bureau of Economic Research working papers submitted this month (Tax Evasion and Inequality and Who Owns the Wealth in Tax Havens?). Both papers are available publicly here.
- The ultra-rich avoid the most tax
The ultra-rich, people whose net worth is more than $45 million, are ten times more likely to evade taxes than the average citizen, according to the research.
That means the ultra-rich have worked out how to avoid paying about 30 percent of their personal income and wealth taxes.
And it probably doesn’t stop there, with the authors suggesting that “evasion among the wealthy may be even higher” because their research was based on Scandinavian countries where social trust is high, corruption low and respect for the rule of law strong.
The research also found that offshore wealth increases the “top 0.1 percent wealth share from 8 percent to 10 percent” when looking at Norway specifically. And for top 0.01 percent “taking tax evasion into account increases their wealth by a third.”
- The ultra-rich are more likely to use offshore accounts
The likelihood of Scandinavians in the bottom 99 per cent of wealth share hiding their assets in HSBC accounts was “negligible,” according to research based on ICIJ’s Swiss Leaks.
But the probability rises to 1 percent among the richest 0.01 percent.
This chart shows the probability of owning an unreported HSBC account by wealth groups. (The first group [P90-P95] represents households worth less than $900,000 and the last the top 0.01 percent who are worth $44.5 million.)
“The gradient is notable too: top 0.01 percent households are 13 times more likely to hide assets at HSBC than households in the bottom half of the top 1 percent,” they wrote.
- Hardly anyone except the ultra-rich use offshore accounts
The use of offshore accounts “steeply rises with wealth,” according to research based on ICIJ’s Panama Papers.
This charts shows the probability of owning a Mossack Fonseca offshore shell company significantly increased for the top 0.01 percent of Norway and Sweden’s population.
“The use of tax havens appears more concentrated in the Panama Papers than in the HSBC leak,” the authors wrote.
The researchers also suggested one reason very few households outside the 0.01 percent in the Panama Papers used shell companies to conceal wealth is because it is a “more sophisticated” strategy than owning offshore bank accounts.
“Both techniques are often combined, but the wealthiest tax evaders might be more likely to combine offshore accounts with shell companies, when less wealthy tax evaders may be relatively more likely to own offshore accounts directly in their own names.”
- Tax havens hold 10 percent of global GDP
In the second study, the authors analyzed the global amount of wealth in tax havens.
“We find that while about 10 percent of world GDP is held in tax havens globally, this average masks a great deal of heterogeneity.”
For example, Russia (60 percent), Europe (15 percent) and other nations hold a significant chunk of their GDP offshore, whereas Scandinavian countries own just a few percent of GDP.
- Offshore wealth is shifting from Switzerland to Asia
The research found the size of this wealth was “not easily explained by tax or institutional factors” but instead correlated more closely with a country’s proximity to Switzerland, the presence of natural resources and political/economic instability.
However, the times might be changing, with the research also discovering wealth was growing in tax havens based in Asia – and mainly in Hong Kong – with offshore accounts held in Switzerland declining since the 2008 financial crisis.
The authors predicted offshore assets in Hong Kong have grown six-fold between 2007 and 2015 with the country now ranked second behind Switzerland for tax havens.
- Countries with more offshore wealth also use more tax havens
The next chart shows the number of unique owners of shell companies created by Mossack Fonseca in each country before 2006 and active in 2007, using Panama Papers data.
“There are strong similarities between the amount of offshore wealth we estimate and the use of tax havens as revealed by the Panama Papers,” the authors said.
Russia is one such country with a total of 2071 unique shells. The authors also highlighted that China is over-represented in the data given estimates of how much Chinese wealth is offshore. They suggest this could be because estimates of China’s offshore wealth are low, or that Chinese use shell companies for purposes other than concealing wealth.
- Offshore wealth can substantially increase inequality
So what does that all mean for equality?
Including offshore assets generally increased the 0.01 percent’s wealth share substantially (even in the law abiding Scandinavian countries).
The effect in some countries is much worse than others. In the United Kingdom, Spain and France offshores assets accounted for between 30 to 40 percent of the 0.01 percent’s wealth. In Scandinavia, however, their share of wealth only increases by about 1 percent.
Read more about the impact from ICIJ’s investigations, and find out how you can support ICIJ’s work
On a scale not seen since the ‘great’ world depression of the 1930’s, the US political system is experiencing sharp political attacks, divisions and power grabs. Executive firings, congressional investigations, demands for impeachment, witch hunts, threats of imprisonment for ‘contempt of Congress’ and naked power struggles have shredded the façade of political unity and consensus among competing powerful US oligarchs. Continue reading Intra-elite Warfare: Oligarchs Succeed, Only the People Suffer!
Capitalism is at the precipice of what it is capable of, and what is possible with it. Nevertheless, its proponents are perpetually swearing that it spurred tremendous development, yet we also know that it is the cause of so much industrial waste, and environmental destruction. Continue reading Moving Beyond Concentrated State Power
US ruling power is in deep trouble because there are growing signs that the mass of citizens are no longer beholden to the supposed authority residing in Washington. Continue reading US Deep State in Deep Trouble
Call it by any other fancy names, but Corporate Tyranny continue to be exposed for what it truly is, worldwide. Behind it all are big bankers and financial assassins, willing to send taxpayer-funded armed mercenaries into countries unwilling to participate in their self-immolation.
One of the most notable financial assassins is the dying George Soros.
At just about the same time that the mainstream media started crying foul about “fake news” websites responsible for the multiple defeats of their favorite politicians, and the US Congress passage of the House Bill 6393, otherwise known as anti-Russian propaganda,
… multiple web giants “YouTube, Facebook, Twitter and Microsoft” are stepping up “efforts to remove extremist content from their websites by creating a common database.
The International Criminal Court has been used by real criminals to remove uncooperative leaders around the globe. Russia is leaving the fold. More African countries are leaving, too.
The Old World Order continues to crumble…
The Zionists control the electoral system of the United States, on top of their complete assimilation of the big media networks.
With today’s recapitulation of the FBI under Comey, there’s no stopping to the Clinton Campaign from capturing the White House, sans punitive actions from the true patriots of the land.
The era of disclosure continues with the recent revelation of how the US petrodollar came to be.
Although this is nothing new to those who have been digging deeper into this subject, it’s completely another thing for the mainstream media to actually do the revelations themselves [here] especially when
“Digging deep into Hillary’s connections to Wall Street, Abby Martin reveals how the Clinton’s multi-million-dollar political machine operates.”
The debate over GMO safety and risks stems from the fact that the definition is too generalized, or too ambiguous. The mainstream conversation about its pseudo-science always favors the corporations behind it.
But mere scientific definition is not enough to circumvent the actual disastrous experience, i.e. those glaring facts about its negative effects outside the GMO laboratories.
As observed earlier, the Panama Papers looked more like a poor propaganda retaliation against Putin and Assad than anything else, for the successful interruption to the Greater Israel plan of the Rothschilds.
The Panama Papers, which relied heavily on the leaked information from Mossack Fonseca law firm, may not just be about State actors and corporate players’ secret offshore shell companies, physical assets and bank accounts, but more about getting back at people who have turned their backs on the New World Order totalitarian regime which took decades of planning, mass murder, regime changes, false flags, and sustained environmental destruction, to construct.
The Panama Papers look more like a Rothchild dynasty’s exercising the Samson Option. But, it’s still good to know that they are now after each other’s throat.
The month of April departed from the usual tradition of hoaxes and parodies, into a more serious exposure of conflicting interests involving State personalities, genocidal attempts, and financial maneuvers that could sink lives even further.
Is Donald Trump really wants to change policies, or just advocating a different management style?
This the big question that Ron Paul asks of Trump whom he thinks is the real establishment’s candidate this time around.
When Russia published its nuclear fusion-fission hybrid technology last October 2014 [here], it was meant to tell the world that they, together with China, are ready to move away from fossil fuel based energy source.
On December 6th, 2011, Los Angeles became the first major U.S. city to call for an amendment reserving Constitutional rights solely for living human beings.
“Money is not wealth; politics and economics are two sides of the same coin, and it is the full understanding of political economics that is the true final frontier.”
Here’s an original copy of the Articles of Agreement of the International Monetary Fund downloaded directly from the IMF website.
Truth is like a strong beam of light, one needs to initially cover his eyes to give the diaphragm and pupil enough time to adjust and control the intensity of reception, yet no matter how one tries, he still couldn’t gaze at the source of light directly.
The Khazarian Mafia controlled Corporatocracy is now testing trans-Pacific societies of its capacity and resolve to resist corporate tyranny with the recently signed TPP Agreement.
There’s a brewing storm in Oregon.
Another rancher and his family are being harassed by the very government that is still preaching freedom and democracy all over the globe.
Just recently, the United States has added 34 new people and entities under its Ukraine-related sanctions against Russia. EU has also extended its own set of sanctions against the Russians.
Politicians and policemen love to use the phrase “rule of law” when they argue for their positions on certain issues such as criminality and economics.
Ordained by God, the Rule of Law is supreme and it should be the binding force that unites civilized men, We all are.
Governments are corporations, but too many are ignorant of this fact and they keep participating and electing leaders they hope are going to serve their interests. Sometimes, a good leader does emerge and when that happens, the Corporatocracy is threatened.
Just a day prior to the start of the decisive move to pulverize the Islamic State, both presidents of the United States and Russia provided the world with a glimpse of two contrasting geopolitical positions, i.e. one founded on prevailing observable realities, the other on sheer delusion.
Aside from the ongoing secretive TPP “negotiations”, the filing of a copyright infringement lawsuit against an activist, who released a copy of the annotated version of the corporate code of the State of Georgia to the public, is another proof of the corporate nature of the United States and most governments around the world.
We posted a while ago that Saudi Arabia may be foregoing its objective to oust Assad for its EU oil pipeline project in exchange for an opportunity to invest in the Russian market. Now, the House of Saud is also putting its one-sided war with the Houthis in Yemen on hold.