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View Full Version : Wealth doesn't trickle down it floods offshore



Qtec
07-22-2012, 11:23 PM
link (http://www.guardian.co.uk/business/2012/jul/21/offshore-wealth-global-economy-tax-havens?intcmp=239)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The world's super-rich have taken advantage of lax tax rules to siphon off at least $21 trillion, and possibly as much as $32tn, from their home countries and hide it abroad a sum larger than the entire American economy.

James Henry, a former chief economist at consultancy McKinsey and an expert on tax havens, has conducted groundbreaking new research for the Tax Justice Network campaign group sifting through data from the Bank for International Settlements (BIS), the International Monetary Fund (IMF) and private sector analysts to construct an alarming picture that shows capital flooding out of countries across the world and disappearing into the cracks in the financial system.

Using the BIS's measure of "offshore deposits" cash held outside the depositor's home country and scaling it up according to the proportion of their portfolio large investors usually hold in cash, he estimates that between $21tn (13tn) and $32tn (20tn) in financial assets has been hidden from the world's tax authorities.

"These estimates reveal a staggering failure," says John Christensen of the Tax Justice Network. "Inequality is much, much worse than official statistics show, but politicians are still relying on trickle-down to transfer wealth to poorer people.

"<span style='font-size: 14pt'>This new data shows the exact opposite has happened: for three decades extraordinary wealth has been cascading into the offshore accounts of a tiny number of super-rich.</span>" </div></div>

Another new report confirms this wealth transfer.

http://www.epi.org/files/2012/Levine_Table2.png

Over the last 20 years, only the top 10% gained, <u>the bottom 90% lost out!</u>

Never fear, the GOP has a man to fix this problem.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">"If you say to your tax people, as he seems to have done, 'I want every trick in the book. I want to push this to the edge,'" Rattner said during an appearance on "Fareed Zakaria GPS" on CNN. "I will tell you that as a private equity guy, I'm familiar with many of the things that he did. And I know many people who have done many of the things that he did. I do not know anyone who did everything that he did."

"Some of what he did, like the IRA, I have asked fellow private equity guys," Rattner said, referencing the account in which Romney has stored up to $100 million tax-free. "None of us had even known this was a possible trick, if you will. He has pushed the envelope all the way to the edge, to his benefit, and I think that Americans would find that pretty distasteful." </div></div>
[Rattner, who hails from the world of private equity, has occasionally served as a voice of sympathy for Romney as his business career has come under heavy attack. His comments, then, carry a bit more weight than the average criticism from an Obama ally]

Q

Mitt.
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Multimillionaire Republican presidential candidate Mitt Romney (R) told employees at a steel fabrication plant on Monday that government employees <span style='font-size: 14pt'>"are making a lot more money than we are."</span>

Wearing his best plaid work shirt and Tommy Bahama blue jeans, the candidate explained to workers at Giese Manufacturing that he would slash the number of federal employees if elected.

"We have to cut back on the scale of the federal government," Romney declared. "And for me that will start by reducing federal employees by 10 percent. You do that through attrition."

"And then something else that is just as important, and that's to make sure the people who work for government don't get better pay and better benefits than people that work in the private sector."

He added: "The tax payers shouldn't have to have money taken out of their pay checks to pay <span style='font-size: 14pt'>people in government who are our servants who are making a lot more money than we are.</span>" </div></div>