Tax havens blamed in global inequity crisis

| 18/01/2016 | 8 Comments

poverty-2(CNS Business): Just 62 people hold the same amount of wealth as the poorest half of the entire world population combined, a new Oxfam report published Monday has revealed. The global charity said runaway inequality has seen the wealth of the richest 62 people, mostly men, increase by more than half a trillion dollars to $1.76tr. The charity is calling for urgent action to tackle the inequality crisis, which includes a clampdown on tax havens.

The news comes ahead of the annual World Economic Forum in Davos, Switzerland, and Oxfam is urging world leaders to adopt a three-pronged approach by cracking down on tax dodging, increasing investment in public services and action to boost the income of the lowest paid.

The report, “An Economy for the 1%“, shows that the wealth of the poorest half of the world’s population — that’s 3.6 billion people — has fallen by a trillion dollars since 2010. This 41% drop has occurred despite the global population increasing by around 400 million people during that period, the report reveals.

Oxfam s calling for an end to the era of tax havens, which has seen increasing use of offshore centres by rich individuals and companies to avoid paying their fair share to society, the report found.

“This has denied governments valuable resources needed to tackle poverty and inequality,” the charity stated. “It is three years since David Cameron told Davos that he would lead a global effort against aggressive avoidance in the UK and in poor countries, yet promised measures to increase transparency in British Overseas Territories and Crown Dependencies, such as the Cayman Islands and British Virgin Islands, have not yet been implemented.”

Mark Goldring, Oxfam GB Chief Executive, said it was unacceptable that the poorest half of the world population owns no more than a small group of the global super-rich — so few, you could fit them all on a single coach.

“World leaders’ concern about the escalating inequality crisis has so far not translated into concrete action to ensure that those at the bottom get their fair share of economic growth. In a world where one in nine people go to bed hungry every night we cannot afford to carry on giving the richest an ever bigger slice of the cake. We need to end the era of tax havens which has allowed rich individuals and multinational companies to avoid their responsibilities to society by hiding ever increasing amounts of money offshore,” he said.

“Tackling the veil of secrecy surrounding the UK’s network of tax havens would be a big step towards ending extreme inequality. Three years after he made his promise to make tax dodgers ‘wake up and smell the coffee’, it is time for David Cameron to deliver,” the charity boss added.

 

See the report here

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Category: Finance, World Business

Comments (8)

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  1. Jus da fax says:

    Ok; so let us say you shut down ALL the tax havens worldwide. Then, you were able to confiscate (sorry,TAX) that $1.76 trillion at 50%. That would yield $880 billion for governments and Oxscam to distribute to the poorest half of the global population (3.6 billion people)

    Deduct a minimum of 40% “adminstration costs” and that leaves you at most, $528 billion to lift these people out of poverty. That would result in a total benefit of $146.67 per person for the poorest half of the world’s population. Yeah, problem solved!

  2. Anonymous says:

    Interesting article, however, I have a question. (1) Which Government spends the people’s money wisely and efficently ? The article is suggesting that if you give them more they will be able to do more. Foolishness! Oxfam need to show the 10 poorest countries in the world and some analysis of how the people’s funds are spent. Maybe, the argument that a short fall in taxes is contributor to world poverty and not bad/corrupt spending by politicians could be better advanced.

  3. Hail de Man says:

    good luck Oxfam, it is a aMessianic cause on which you embark, but sadly, the road to political power is paved by the wealthy who you so valiantly wish to dethrone.

  4. Anonymous says:

    No Christian would support facilitating the wealthy avoid paying their taxes.

    • Jus da fax says:

      Because we know that using the power of the state to confiscate private property based on “the needs of the state” is the most Holy endeavor one can prosecute.

      Because we know that using the threat of violence and imprisonment to get someone to had over fruit of their labor is the ticket to get through those pearly gates.

  5. Anonymous says:

    Non-pension assets held on trust should be subject to a global inequity tax of 50%.

    • Anonymous says:

      Systematic embezzlement by corrupt kleptocrats are responsible for global inequities. Many of these goon squad legacies were installed by the west, in some cases decades of regimes ago. Why should it fall to my poor nephew or grandkid to surrender 50% of their after-tax and post-probate inheritance (representing years of hard work by me) to correct an injustice created by these foreign governments and enabled by every other government of the last 50 years? How is that fair?

      • Anonymous says:

        Because the only reason assets are put into trust are to dodge taxes or keep them from creditors. You know it, I know it, everyone knows it.

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