What tax evasion robs us of

notices and features
8 years ago
Categories: capitalism, class war, tax, us politics, wages
Tags: panama papers, tax, tax avoidance, tax evasion, ubi

Tax evasion is illegal. Tax avoidance is a moral grey-zone. They both cost governments income that could be used to further the public good. This interesting piece by Colin Holtz in The Guardian looks at the costs of tax evasion, and how (in America) the missing funds could be used to fund a UBI:

The Panama Papers prove it: America can afford a universal basic income

If the super-rich actually paid what they owe in taxes, the US would have loads more money available for public services

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Called a universal basic income by supporters, the idea has has attracted support throughout American history, from Thomas Paine to Martin Luther King Jr. But it has also faced unending criticism for one particular reason: the advocates of “austerity” say we simply can’t afford it – or any other dramatic spending on social security.

That argument dissolved this week with the release of the Panama Papers, which reveal the elaborate methods used by the wealthy to avoid paying back the societies that helped them to gain their wealth in the first place.

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But while working and middle-class families pay their taxes or face consequences, the Panama Papers remind us that the worst of the 1% have, for years, essentially been stealing access to Americans’ common birthright, and to the benefits of our shared endeavors.

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The Tax Justice Network estimates the global elite are sitting on $21–32tn of untaxed assets. Clearly, only a portion of that is owed to the US or any other nation in taxes – the highest tax bracket in the US is 39.6% of income. But consider that a small universal income of $2,000 a year to every adult in the US – enough to keep some people from missing a mortgage payment or skimping on food or medicine – would cost only around $563bn each year.

A larger income, to ensure that no American fell into absolute abject poverty – say, $12,000 a year – would cost around $3.6tn. That is a big number, but one that once again seems far more reasonable when considered through the lens of the Panama Papers and the scandal of global tax evasion. Because the truth is that we have all been robbed, systematically, by the world’s wealthiest people, for decades. They have used those stolen dollars to build yet more wealth for themselves, and all the while we have been arguing with ourselves over what to do with the leftover pennies.

Enough. We have the money to solve our problems. The first step is to stop the global elite from hoarding and hiding it. …