Top US Companies Stash $1.4 Trillion in Tax Havens. Here's What It Costs Poor Countries Oxfam
go to original April 19, 2016

Now that the Panama Papers have begun to reveal the shadowy world of Mossack Fonseca’s offshore accounts, isn’t it time to look at the entire system? See more at Patreon.com. (Mark Fiore)

Developing countries and the US government each lose $100 billion every year because multinational companies hide their profits in offshore tax havens. When multinational companies avoid paying taxes in countries where they really do business, it harms America and poor countries alike.

When corporations don’t pay their taxes, you foot the bill. In 1952 corporate income taxes covered 33 percent of the US federal budget, today it’s just nine percent. Every taxpayer would need to pay an additional $1,026 in taxes per year to make up for tax dodging by companies and wealthy individuals.

Profit shifting to reduce taxes is happening on a massive scale. In 2012, US multinationals alone shifted $700 billion from countries where their profits were truly earned to locations with very low or zero tax rates.

$100 billion is enough to:

   • Quadruple spending on education in the world’s 47 poorest countries.

   • Provide basic life-saving health services for 2.2 billion people every year.

   • Provide basic safe water and sanitation services for 2.2 billion people.

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