Offshore bonanza means taxation on corporate profit and private wealth is lowest in 50 years

I like what this satirical Twitter feed has to say on the subject:

Meaning: Don’t. Vote for a sane taxation system instead.

Rates of taxation on corporate profits – and private wealth – have dropped steadily over the past half-century as it becomes progressively easier to move money across borders. In the 35 countries in the Organization for Economic Co-operation and Development (OECD), for instance, corporate tax has fallen dramatically, from an average of 30 per cent in 2000 to 23 per cent today.6 (In the early 1980s rates hovered around 50 per cent.) Transnationals benefit and our governments are poorer and more indebted.

While there is a growing push to hold tax dodgers accountable, this has met with stiff resistance from entrenched interests. The resulting stalemate is precisely why existing attempts to regulate tax havens have failed. At best, the end results have been half-baked policies that rely on voluntary or on-request information sharing, rather than mandatory compliance.

To rein in the offshore bonanza two basic conditions must be met. First, financial transparency will need to improve. The offshore banking industry thrives on its ability to hide the true owners of wealth, which makes it impossible for tax authorities to know which assets to target.

Second, future policies must establish stronger control over capital – in particular its geographical mobility. Whereas transparency is particularly vital for combating tax evasion by private individuals, capital control is more important for combating tax avoidance by corporations. By raising the cost of moving capital around the world it becomes easier to levy taxes on it.

Source: Ending the offshore bonanza — New Internationalist

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