#PanamaPapers & Tax Stats

Interesting read from the CATO Institute yesterday. It relates the people associated with the #PanamaPapers to taxes and the countries they are associated with. I just wanted to pull out some content for you. You can read the entire article at the link below.

  • For the Left…
    • …(some felt) this was proof that capitalism was corrupt,
    • …(others thought) it was a lesson in inequality and how the rich don’t pay their fair share,
  • President Obama used the scandal as an excuse to call for legislation to make it more difficult for Americans to shift their income out of the country.
  • 211 people with U.S. addresses (not all are US Citizens),
  • no Americans among the so-called “Power Players,” a list that includes 140 politicians from more than 50 countries,
  • U.S. citizens and companies keep only about 4 percent of their wealth offshore, tying us with Asia for the lowest percentage,
  • Europeans stash 10 percent of their wealth offshore,
  • Latin Americans move 22 percent out of their countries,
  • Russians keep an overwhelming 52 percent in overseas accounts
  • Canadians hold more than twice as much of their financial assets offshore as Americans
  • even if 80 percent of U.S. offshore wealth had been hidden in foreign accounts in order to evade taxes, the lost revenue would amount to less than $28 billion, which is less than 1 percent of what the federal government will spend this year
  • In countries like Denmark and Finland, the top statutory personal-income-tax rate can exceed 50 percent. History should have long since taught us that tax rates of that level yield relatively little revenue, because people avoid paying them. Hint: If you want to bring this money home, drop the “soak the rich” attitude and lower tax rates.
  • What is surprising, though, is the number of government officials and aides — and their relatives — who have apparently accumulated vast fortunes, and often in countries that self-consciously preach equality, even socialism.
  • There is a reason why five of the ten counties with the highest median incomes in America are suburbs of Washington, D.C. This isn’t an indictment of capitalism, but rather an indictment of big government.

For the full article, read: www.cato.org/publications/commentary/what-panama-papers-actually-show-read?utm_source=fairtaxerblog&utm_medium=fairtaxer%2Ecom

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I'm the grandson of an Underwood and have been mapping my Underwood Family Tree for a couple years now.

Posted in Income Tax, Tax Reform
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