£13tn: hoard hidden from taxman by global elite

[Bennyboy]

Last edited Sun Jul 22, 2012, 10:59 AM - Edit history (1)

Source: Guardian

A global super-rich elite has exploited gaps in cross-border tax rules to hide an extraordinary £13 trillion ($21tn) of wealth offshore – as much as the American and Japanese GDPs put together – according to research commissioned by the campaign group Tax Justice Network.

James Henry, former chief economist at consultancy McKinsey and an expert on tax havens, has compiled the most detailed estimates yet of the size of the offshore economy in a new report, The Price of Offshore Revisited, released exclusively to the Observer.

He shows that at least £13tn – perhaps up to £20tn – has leaked out of scores of countries into secretive jurisdictions such as Switzerland and the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Their wealth is, as Henry puts it, "protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy". According to Henry's research, the top 10 private banks, which include UBS and Credit Suisse in Switzerland, as well as the US investment bank Goldman Sachs, managed more than £4tn in 2010, a sharp rise from £1.5tn five years earlier.

Read more: http://www.guardian.co.uk/business/2012/jul/21/global-elite-tax-offshore-economy?INTCMP=SRCH

[orpupilofnature57]

1. And Shrub was their best agent ever ,And MSM too

[Octafish]

14. Phil Gramm helped.

Know your BFEE: Phil Gramm, the Meyer Lansky of the War Party, Set-Up the Biggest Bank Heist Ever.

The guy went from the Senate to the Vice Chairmanship of UBS, the Swiss bank. Neat, huh?

Of course, that was in another administration...

[orpupilofnature57]

34. The villains Jefferson warned us about.

[cstanleytech]

2. Ummm, Judi Lynn already posted this article roughly 2 hours ago

http://www.democraticunderground.com/101635942

[Brother Buzz]

9. Not in LBN

Just saying.

[corkhead]

3. Shouldn't "elite" be in quotes? Maybe not. They are the elite of asset hoarding greedy bastards.

[ashling]

45. elite asses hoarding you say?

[The Wielding Truth]

4. £13 trillion ($21tn) 21 trillion dollars?

[TahitiNut]

5. That's why the IRS goes after servers and hairdressers.

God forbid they don't declare those TIPS! Nevermind that that money stays IN the domestic economy.

[riverbendviewgal]

6. Little fish are easier to get

and those big fish can bite and even eat you up....

[Amonester]

66. Better than that, they can sign checks...

to "insider trading" familly members, for instance, once in a while...

[Electric Monk]

8. let's not forget university students downloading mp3 files

they're such a threat to the economy....

[chervilant]

11. Yeah...

The IRS has sent me a notice that I "owe" them $570 for 2010, when I allegedly misrepresented my unemployment "earnings."

I had to move in with a friend in February, I don't know where my tax stuff is (somewhere in storage), and I only have sufficient resources to remain solvent for about 9 more months.

Clearly, I am the miscreant who's costing taxpayers a BUTTLOAD of unpaid taxes!

[wickerwoman]

39. They go after everyone.

http://www.forbes.com/sites/kellyphillipserb/2012/03/21/the-biggest-story-in-banking-thanks-to-irs/2/

"Under the new tax treaty, the IRS can ask the Swiss to disclose names of U.S. taxpayers at a bank with evidence of “behavioral patterns” that might point to tax evasion...

...with a couple of pen strokes, the U.S. government – largely acting in response to concerns from IRS – has succeeded in doing what even the Nazis could not do in terms of breaking down the walls of Swiss banking secrecy."

Nobody likes paying taxes, but accusing the IRS of targetting the most vulnerable while giving the rich a free pass is a serious accusation that should be backed up by real evidence. Anything else is just playing into right-wing anti-government cynicism.

[KakistocracyHater]

80. did you miss the story abt irs auditing poor more?

http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/2009/03/irs-lets-rich-off-audit-hook.html

That's the assessment of the Transactional Record Access Clearinghouse (TRAC). Using IRS data, the Syracuse, N.Y.-based group calculated a drop of at least 19 percent in the audit rate of people with incomes of $1 million or more between 2008 and 2007.

[Nancy Waterman]

7. This is a bombshell

13 to 20 trillion dollars stashed away by the super rich!! Just think if all that money was poured into investment in their home countries instead of sitting in a hoard somewhere so they can count it like King Midas. The economic troubles of the world would end with all that money back in circulation, hiring people and paying wages on all of those projects. This is an easy to understand sound bite that will hurt Romney and prove, yet again, that he and his ilk are not the solution but the problem.

[Spitfire of ATJ]

19. Better yet, imagine that money going into payroll.

But remember what the Republicans say, increasing minimum wage is a bad thing. It kills growth and makes your hair get split ends.

[Turbineguy]

27. OK,

I'm not worried about growth, after all, I see more and more people holding up cardboard signs asking for help, so growth is a relative thing. But what about this split-ends thing?

[Spitfire of ATJ]

36. No biggie

[img][/img]

BTW: Republicans also claim raising the minimum wage can make your face break out too.

[Psephos]

22. Most of that money is in investments.

In other words, it's being used to fund capital borrowing needs of business and governments (i.e., deficit spending).

In a global economy based on fiat (fake) money, preservation of capital requires investment, not hoarding. That's because the value of money is dropping like a rock. Very wealthy people are not fools. Keeping your wealth in cash like King Midas means that soon enough it will evaporate, as governments keep printing fiat money. That's happening right now.

The real story here is that the accounts and investments are beyond the nominal reach of the tax man. That's what needs to be fixed.

[Incitatus]

23. So, if I understand this correctly..

someone like Romney could put $50 million in an offshore account, buy a ton of Apple stock and later sell it, increasing his account value and paying no taxes? What then when he wants to spend that money in America or another country?

[Psephos]

33. Lax laws permitted something like that for a long time, but no longer.

Income from assets in foreign countries must be declared and tax paid upon it. With newfound legal powers under revisions to the revenue code, Uncle Sam is strong-arming foreign banks and financial havens through their governments to report these assets. Some of these traditional havens, such as Switzerland, will no longer open a new account for an American.

That said, my original point was that wealth is almost universally invested, not stuffed in a pillow case. Invested capital creates credit, which is the oil on which all economies run. Without it...KYAGB.

Did Rmoney report his foreign assets and income ethically and legally? That's the question the tax returns would answer.

[Nancy Waterman]

58. Exactly right!

The real story here is that the accounts and investments are beyond the nominal reach of the tax man. That's what needs to be fixed.

They rationalize their tax dodging by saying government is bad and all taxes are bad.

It is just like the issue of climate change. They want
to make unlimited money on oil and gas, so climate change doesn't exist.

Thus we have TWO inconvenient truths:

climate change;
tax collection and good government are necessary for a functioning and productive societies.

The GOP propaganda/ideology opposes them both, but underlying them is the money-grubbing agenda of the financial elite. These truths are inconvenient to their accumulation of wealth. The propaganda/ideology is the mask to make them palatable to the masses.

[wordpix]

41. where are all the jobs from the "job creators" who need their permanent Bush tax cuts?

huh?

[1MeanBean]

76. Actually it's $21 trillion.

The 13 trillion is in british pounds. Converted into dollars that equals $21 trillion. It could possibly be as high as $32 trillion according to the report. Their greed knows no bounds.

http://ianmasters.com/sites/default/files/mp3/bbriefing_2012_07_22c_david%20cay%20johnston.mp3

[valerief]

10. US debt! nt

[freshwest]

12. At this rate, the numbers have little meaning.

[wordpix]

42. here's some meaning: based on a $50,000/yr. salary, $20 trillion would pay for 400 million jobs

That is, if my math is correct

[freshwest]

48. That's fine, but as a percentage of -- paper/digits in a database -- existing in the world today?

Last edited Sun Jul 22, 2012, 12:22 AM - Edit history (1)

I think we are talking of such a distortion of values of numbers and other values that we are not talking about numbers. At that level, they don't really own 'money' anymore. They own land, water, resources, islands, cities, states, countries, I guess.

They are above the economic system, is what I'm trying to say, and we are the engine of it. Some times I think those numbers are just to divide and keep the 'little people' busy chasing after game pieces, but they don't really get to keep them, and we are kept out of real power. The kind that they have and never lose, not matter if they do a 'good job' or not.

Real power, the kind of thing the masses (I hate that term) have always turned a blind to. Does the church own vast estates here and there, or does royalty? Are there huge country clubs or other places not being gated off for the use of a few and that we look at to develop, do we consider their possibilities for ourselves? No, we don't dare. What is it that keeps us supporting this system?

I understand too, from your figures, but that would be a one time payment for one year, right? What about the next year? The sums were are talking about appear static, but to have it coming in to accumulate, there has to be a flow, or what for lack of a better word, is energy going that way. I am seeking to understand how we are going to go forward with so much inequality. I speculate at times, if the inequality was always there, masked by risky things such as mortgages, employment and benefits to keep us from looking at the fact that we are the dispossessed of the world, while they possessor, without opposition, almost everything.

We're talking about a class (another icky word) of people who do not exist in our world of work, education, achievement, paying for homes or vehicles on time, waiting for the tax man to take their money or give it back, or someone to employ them, or a retirement. A world of ownership. Is it by paper? By family or connections? Or what? I sm not ashamed of being baffled, but I'm always learning and changing my perspectives.

Thanks for the math! I'm not good at that at all.

[Octafish]

13. What are their names? And on what streets do they live?

I'd like to ride right over
this afternoon and give them
a piece of my mind
about peace for mankind.

Peace is not an awful lot to ask.

[Berlum]

15. "Smirk." - Republican 1% Elites

[formercia]

20. You would think, with all that Money, Mitt could afford better dental work n/t.

[smirkymonkey]

72. Gah! you just made me throw up my lunch!

God, I really hate that guy.

[LiberalEsto]

16. These idiots must think they can take it with them when they die

I wonder if they have tax shelters in Hell

[formercia]

18. The fires of Hell are fueled with Money

..and the rich will pay their dues.

[1MeanBean]

79. No they just make sure their next of kin and generations to come inherit it all.

Google "family office" They don't call them plutocrats and oligarches for no reason.

[hifiguy]

17. Time for the tumbrels and

They will destroy the world if they are not stopped.

[nichomachus]

64. Party like it's 1789

[nanabugg]

21. I've been trying to talk about this for over a year. Finally some is discussing this. nt

[closeupready]

50. I know. Me, too. I guess better late than never.

K&R

[lib2DaBone]

24. Corporations are swimming in cash.. the largest ever...

Banks.. Oil Companies.. Health Insurance Companies.. SWIMMING in cash... the most ever in their history.

Except no one will lend.. and no one will spend.

The 1% have choked the system at the top.. no cash is circulating.

Give hotel maids or janitors a 5 cents an hour raise? Oh no.. that is inflationary. Give Bus drivers, taxi drivers, or retail workers even a penny-an-hour?

Oh no.. that is "SOCIALISM"

[onehandle]

25. I declare the act of moving money offshore 'Romneying.'

Romneying is an act of selfish traitorism.

[wordpix]

43. Romney: v. 1) to move money offshore to tax havens; 2) to outsource jobs for the purpose of

profiteering; 3) to make large profits by buying troubled companies, firing workers, and using tax loopholes.

Definitely good for a verb as in, "She romnied it" and "they romnied that deal."

Also good for a noun: "Now that Joe has bought the company, I hope he won't pull a romney."

[Amonester]

67. Also known as 'Rmoneying'.

[drm604]

26. GODDAMMIT!

[PSPS]

30. LOL. Of course, I can't find a single US media outlet that is carrying this story.

What a big surprise.

[YOHABLO]

35. Well their boss is the advertisement industry ...

go figure ... you think they're going to kick themselves in the ass? I am surprised MSNBC and CNN can get away with some of the issues discussed. That is why it is very important to support DU and many other progressive outlets in the U.S. You do notice this came form the Guardian in the U.K.?

[orpupilofnature57]

38. Misanthrope Sycophant Monsters

[Nancy Waterman]

44. kick to the top

So EVERYONE sees it!

[Fumesucker]

32. Just think of how many jobs they're going to create with all that dinero..

Once, of course, the uncertainty is taken away and the rich get their proper due of tax cuts and strident adulation.

[orpupilofnature57]

37. How ,where and when does this liquid solidify?

Is it us serving them to feed ourselves that makes it work?

[Angry Dragon]

40. Willard's friends

[L0oniX]

46. All those trickle down job creating dollars creating jobs for foreign bankers. ASSHOLES!

[Citizen Worker]

47. Does this mean the job creators are hiding their loot instead of creating jobs? Who woulda thought!

[Safetykitten]

49. THANK GOD IT PASSED!

[lovuian]

51. 13 trillion stolen from the American people

lets get a aircraft carrier and confiscate the money from all the accounts

We will have a balance budget then
and give healthcare to all and educate our children and give jobs to everyone

[Bennyboy]

61. Not just the US but worldwide....

Look at the Eurozone and see the money that is GONE from taxation. Greece is all about people not paying their taxes.

[leveymg]

52. No wonder there"s no money for public schools

[woo me with science]

53. Have we had enough yet? nt

[woo me with science]

54. What ever should be done about this?

Gee, what do you think WILL be done?


Is it time for the denial to stop yet?

[slackmaster]

59. The way to mobilize that money is to create an environment that encourages expansion of production

Stable, predictable interest rates, regulations, and taxes. Those are things that government can exert direct control over.

Make it more profitable for people to invest their hoards than to sit on them.

[woo me with science]

60. We are living the shock doctrine.

It is unfathomable that, in an economy like this, the call is to CUT budgets and starve demand even more. The only possible interpretation is that healing the economy is not the actual goal here.

The actual goal is to restructure where the money goes. They are succeeding in looting this country.



The denial needs to stop.
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=146626

[Amonester]

68. Depends also on 'how' to invest.

Like surely not in more 'drill, baby, drill' AK's and Canada's artic waters, for just a small example...

Not sure they wouldn't.

Why not in CSP (Concentrated Solar Power) instead?

[slackmaster]

69. The government would have to show some actual leadership

I agree that CSP would be a worthy goal.

[Amonester]

70. There will come a 'point' the government$ (plural) will have no other choices...

The only questions are: will it be too late to 'reverse course' by then?

[primavera]

55. Do the rich still "deserve" to be rich?

A lot of people even here on DU seemed to be of the opinion that there isn't anything wrong with being rich, that they deserve their good fortune.

[woo me with science]

56. Kick. nt

[slackmaster]

57. So a few people have squirrelled away a bunch of cash. The answer is to create more.

Quantities of minerals and arable land are fixed, but there is no limit to the wealth that can be created through intellect and creativity.

[smirkymonkey]

73. Man, that is one fat squirrel. Cute though!

[midnight]

62. Secret Fed Loans Gave Banks $13 Billion Undisclosed To Congress

http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html

I somehow come to think that this outrages wealth distribution from the working class to the elite is being rewarded by giving congress insider information on how to earn tons via insider trading...

[1MeanBean]

77. There's A LOT MORE than just that.

I'm not a fan of Ron Paul but he's right when he says, AUDIT THE FED! Hopefully Bernie Sanders will sponser his bill when it comes to the Senate because god knows Harry Reid won't touch it with a ten foot poll because his backers don't want YOU to know the TRUTH.

[dipsydoodle]

63. Presumably Tax Justice Nework know exactly where it is too

and will advise relevant goverments accordingly.

http://www.taxjustice.net/cms/front_content.php?idcat=148

[hedgehog]

65. kick!

[sabrina 1]

71. And that answers the question Michael Moore rhetorically asked in 'Capitalism, A Love Story'

"But where did all the money go?"

A lot of people have been asking that question.

So now that we know, what is Congress going to do about it?

It appears that many wealthy Americans are giving up their Citizenship in order not to have to pay taxes here in the US. But that doesn't prevent them from doing business or even spending their time here in their billion dollar mansions.

Maybe it's time to start taxing them higher on the properties they own here and if they don't like it, then let them live somewhere else. But to allow them to use all the benefits of this country while refusing to the point of ditching their citizenship, to contribute in any way, seems to me to simply be more enabling of their dirty tricks to steal from this country.

This was part of the problem in Greece also, although the wealthy tried to blame it on the working class. Same thing in Spain and elsewhere. Time to start holding these hoarders accountable, each country cutting them off from their treasuries. In fact it is way, way past time.

[benld74]

74. Scum of the earth is what they are,,,,

[rhett o rick]

75. Wonder if they get FDIC coverage for that? nm

[1MeanBean]

78. No and yes

No but they ALWAYS have a back door way of making sure the govt picks up the tab if they lose it. It's called bailouts.

[Quantess]

81. What a swindle. A coup.