A Quote by Ha-Joon Chang
Why do tax havens exist? Because rich countries allow them to. If the U.S. came down on tax havens in the same way they come down on countries that trade with Iran and Cuba, we'd have no tax havens in the world.
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It isn't only rich countries that suffer from the effects of tax havens. Developing countries also lose billions of dollars in tax revenues due each year because wealthy individuals and some companies use tax havens to move assets and income offshore.
African countries lose the most from tax dodging. African governments must, therefore, do more to push for a full reform of the global tax system and demand action from countries, such as the U.K., whose financial centres sit at the heart of the global network of tax havens.
We want to put a stop to tax havens. We want results on this, with a list of tax havens and a series of consequences.
If corporations and rich people who made fortunes out of us during the boom are not paying their fair share then reform the tax system and close down the tax havens.
The secreting of wealth in tax havens is often justified as 'legitimate tax planning.'
Now all of the ideas that I'm talking about, they are not radical ideas. Making public colleges and universities tuition free, that exists in countries all over the world, used to exist in the United States. Rebuilding our crumbling infrastructure, and creating 13 million jobs by doing away with tax loopholes that large corporations now enjoy by putting their money into the Cayman Islands and other tax havens. That is not a radical idea.
We will also target tax evasion and off-shore tax havens... Everyone must pay their share.
I want to end tax dumping. States that have a common currency should not be engaged in tax competition. We need a minimum tax rate and a European finance minister, who would be responsible for closing the tax loopholes and getting rid of the tax havens inside and outside the EU. It is also clear that we have to reach common standards in our economic and labor policies. We cannot continue to just talk about technical details. We have to inspire enthusiasm in Germany for Europe.
Transparency and effective tax co-operation must be shared principles applied by all. Until they are, nations will need to protect themselves against loss of revenues to tax havens.
By allowing super wealthy corporations and individuals to avoid paying their fair share of tax, tax havens are denying governments' revenue that could and should be spent on schools, healthcare, and other essential services.
In the meantime the big corporations are fleeing America for tax havens and places like Ireland, Luxembourg and the Grand Cayman Islands; the rich are finding more tax loopholes to expect; so when are the people going to basically roll up their sleeves and say, we've had enough, we're going to recapture Congress.
I really like the idea of consumption tax, and most countries have a pretty serious consumption tax. It's called a value-added tax or a goods and services tax ... It's a sales tax. It doesn't tax labor, it doesn't tax savings or investment - it taxes consumption.
If we want a stronger, cleaner, and fairer world economy, we need to deal with the controversial areas of globalisation, such as tax havens.
Much of the blame for the situation lies with the states themselves. They haven't been able to pass decent laws. For decades, tax authorities have been taking aim at the phenomenon of tax havens, and the most aggravating thing is that they aren't just in Bermuda or on the Cayman Islands, but right outside our front door.
The financial system has to be regulated, we have to end with the tax havens, and it's necessary that the central banks in the world should control a little bit the banks' financing because they cannot bypass a certain range of leverage.
Developing countries can make great strides towards more progressive and effective taxation and spending through action within their own borders. But the damage caused by exemptions, loopholes, and tax havens requires action beyond national borders - it requires international action and cooperation.
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