Tax havens exist because some people with wealth don’t want to pay taxes on it. Not surprising. The money stored in tax havens is excess wealth, wealth accumulated but largely untouched, wealth that can continue to accumulate wealth. Such concentrations of wealth exacerbate wealth inequality, usually legally. It is estimated that;
“as much as 8% of the world’s wealth, totaling $7.6 trillion, might be “hidden” in places like Switzerland and the Cayman Islands” – Gabriel Zucman
“more wealth than is owned by the poorer half of the world’s 7.4 billion people” – Brad and Michael DeLong
That is also wealth that is no longer in distribution and no longer benefiting the economy. Legal or not, such accumulations are evidence that a system has destabilizing elements.
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