Some staggering figures on tax evasion were revealed this week by British economist James Henry in a report titled "The Price of Offshore Revisited."
Henry, a former chief economist for the consulting firm McKinsey & Co., determined that at least $21 trillion worldwide is being stashed in tax havens such as Switzerland, the Cayman Islands, Luxembourg, Hong Kong and Singapore. The study _ which compiled data from the World Bank, the International Monetary Fund, the United States and central banks _ said $21 trillion is a conservative estimate, and the actual figure could be as high as $32 trillion. By comparison, the entire annual U.S. economy totals roughly $15 trillion.
Equally frustrating is the relatively small number of tax cheats responsible for this "huge black hole in the world economy," as Henry described it. These offshore assets are held by fewer than 10 million people worldwide, and $9.8 trillion is held by the wealthiest 100,000 _ or 0.001 percent of the world's population.
The banks that handle much of this activity have been hiding in plain sight _ and could be held responsible, if doing so became a political priority. The three biggest offenders _ UBS, Credit Suisse and Goldman Sachs _ are "headquartered in First World capitals like London, New York and Geneva," Henry wrote. "Our detailed analysis of these banks shows that the leaders are the very same ones that have figured so prominently in government bailouts and other recent chicanery."
In an era when many governments worldwide are resorting to painful tax hikes and budget cuts to balance their budgets, it's unconscionable that a small segment of the population can game the system using methods to which the average citizen doesn't have access.
If all this unreported offshore wealth were taxed, it would yield between $190 and $280 billion in revenue _ or "roughly twice the amount OECD countries spend on all overseas development assistance around the world," according to Henry's research.
An optimist would argue that this trickery could be dealt without much difficulty.
The G-20 nations in recent years have vowed to hold banks responsible and require them to turn over clients' names. The small, import-reliant countries that serve as tax havens are vulnerable to trade sanctions and would have little choice but to comply if such measures were threatened.
But given the complexity of offshore tax-dodging schemes and the complicity of global leaders who have the power to ban them, individual nations can do little about this problem on their own. Even if Congress chose to tackle the issue in a bipartisan manner _ as dubious as that may sound _ such efforts would succeed only in conjunction with a cooperative worldwide crackdown on such practices.
Editorials
Tax cheats should pay their share
- Editorials
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On our Opinion: Cheers
To the DEP's "The Watershed Experience," the Oneonta High School Envirothon team, and to ROPS rebate funding.
Continued ... -
Make sure you vote in school tax election
School superintendents have it anything but easy in these challenging economic times. In addition to dealing with myriad day-to-day and semester-to-semester issues, they have to have Solomon-like political acumen and management skills.
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Casino in our area worth talking about
If Gov. Andrew Cuomo has his way, casinos will be awarded to three upstate locations.
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Take precautions to prevent kidnappings
It has been nearly two weeks since the arrest of Ariel Castro in Cleveland on rape and kidnapping charges for acts that should send a chill through the spines of everyone in America.
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IRS, Justice actions violate our trust
After the recent actions of the Internal Revenue Service and the U.S. Justice Department, belief in the integrity of our government is hanging by a very slender thread.
Continued ... - Wednesday, May 15, 2013
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After 40 years, it was time to get married
This newspaper publishes lots of wedding announcements, but one that appeared prominently in Monday's edition was especially heartwarming.
Continued ... - Tuesday, May 14, 2013
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Cheers
To three longtime public servants who recently announced their decisions to leave their posts.
Continued ... - Monday, May 13, 2013
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Military culture of abuse must change
26,000.
Continued ... - Saturday, May 11, 2013
- Remember mothers on their day
- Friday, May 10, 2013
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In Our Opinion: Cellphone alert system can only help
Since the early days of radio, broadcasters have been able to break into programming to alert listeners about dangerous situations.
Continued ... - Thursday, May 9, 2013
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Home rule decision is good for all
What lawyer Thomas West called an "exit strategy" for Gov. Andrew Cuomo, we call common sense, plain and simple.
Continued ... - Wednesday, May 8, 2013
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Internet tax would benefit local businesses
Let's suppose you're the owner of a bicycle business in our area, and a customer comes in to look at a new bike. He asks you questions about it, maybe even sits on it or takes it for a spin. He compares it with other models, looks at the color and checks out what would be the best size for him.
Continued ... - Tuesday, May 7, 2013
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Cheers
To the city of Oneonta's tree giveaway, the town of Hartwick's "Clean Sweep" day, and Bassett Healthcare's patient-centered medical home program.
Continued ... - Monday, May 6, 2013
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In our opinion: Take steps to prevent fire tragedy
Oftentimes it takes a tragedy to remind us to do the little things that may save our lives.
Continued ... - Saturday, May 4, 2013
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Collins deserves to be cheered
It's likely that unless you are a big basketball fan, you never heard of Jason Collins before Monday, when he became the first active player in any of the four major American professional sports to announce that he is gay.
Continued ... - Friday, May 3, 2013
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College's amnesty policy can save lives
The statistics on overdoses among college-age Americans are downright sobering.
Continued ... - Thursday, May 2, 2013
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Reality of sequester is scary enough
"Scare tactics" was a phrase used frequently by President Barack Obama's critics about the sequester.
Continued ... - Wednesday, May 1, 2013
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Let LDC handle Manor sale
It's a dilemma, make no mistake about it.
Continued ... - Tuesday, April 30, 2013
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In Our Opinion: Cheers
To OH-Fest, Kevin Rous for his fundraising derby car, and Cathy Decker on her Green Cap award.
Continued ... - Monday, April 29, 2013
- Keep working on common core test
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On our Opinion: Cheers



