The New York Times has collaborated with Berkeley economics prof Gabriel Zucman to produce an interactive explainer that walks through the baroque tax-evasion strategies deployed by multinationals like Google and Apple, as well as the super-rich, using plain language and explanatory graphics to get past the deliberately eye-glazing tedium of these arrangements, a shield of boringness that has allowed the super-rich to hide $8.7 trillion from tax authorities while taking advantage of national courts, education, roads, police, and health care.
This system of representation without taxation gives the wealthy the best of all worlds: tiny and giant countries alike scramble for crumbs from the ever-more-rich 1 percent, tilting policies in their favor.
Zucman is the author of a 2016 book called The Hidden Wealth of Nations: The Scourge of Tax Havens, which gets top reviews.
According to the latest available figures, 63 percent of all the profits made outside of the United States by American multinationals are now reported in six low- or zero-tax countries: the Netherlands, Bermuda, Luxembourg, Ireland, Singapore and Switzerland. These countries, but above all the shareholders of these corporations, benefit while others lose.
My colleagues Thomas Torslov and Ludvig Wier and I combined the data published by tax havens all over the world to estimate the scale of these losses. The $70 billion a year in revenue that the United States is deprived of is nearly equal to all of America’s spending on food stamps. The European Union suffers similar losses.
How Corporations and the Wealthy Avoid Taxes
(and How to Stop Them)
[Gabriel Zucman/New York Times]
(Thanks, Fipi Lele!)
Microsoft maintains the fiction that it has sold its most valuable copyrights and other intangible assets to a tiny factory in Puerto Rico, where, thanks to promising to hire a mere 85 workers, it pays effective zero tax; the company transfers almost all its profits to this factory to "license" its own crown jewels, making […]
America's telcoms sector is hugely concentrated and corrupt, and systematically underinvests in maintenance and infrastructure even as it gouges customers, which it can get away with thanks to its monopoly power, leaving Americans with some of the world's worst, most expensive communications services.
We've been closely following the plan by Google sister company Sidewalk Labs to build a surveilling "smart city" in Toronto; last week, I sat down with the Out of Left Field podcast (MP3) to discuss what's going on with Sidewalk Labs, how it fits into the story of Big Tech, and what the alternatives might […]
Entrepreneurs looking for new avenues to reach customers may not have considered one of the fastest-growing content mediums today: podcasting. And we don’t mean just dropping an advertisement for your product or service in the middle of a popular show. Right now, there are about 850,000 active podcasts reaching 165 million Americans. Those listeners are […]
Twitter rants and various online ugliness aside, social media has actually grown up a bit over the past 15 years. In general, users are warier of their interactions on platforms like Facebook or Instagram — and marketers have taken note. In fact, if you felt retailers you saw on social media were only looking to […]
Virus quarantines and shuttered restaurants sent millions of Americans back to their homes, only to rediscover the joys of firing up an oven and cooking something special for themselves. Whether by desire, necessity, or both, many of us have certainly been spending more time in the kitchen these last few months. And we haven’t just […]