Figures from 2010 may suggest that the rich may be hiding their hordes of cash overseas…
A tax haven is a place where the tax rates are relatively low, in addition to a low crime rate and fair political conduct, meaning that vast amounts of money can be stored with little expenditure. This is particularly useful to the wealthy, who want to keep their earnings and not be taxed high amounts in their home country.
By the end of 2010, it was calculated that $21 trillion was being held in these areas, equal to £13 trillion. This is approximately the value of the economies of the US and Japan combined! Considering the fact that the richest man in the world only has roughly $50 billion, this large, large figure has been criticised by experts in the field.
A trillion dollars is a thousand billion, or a million million, which would weigh 23 million tons when dry!
This gargantuan amount would provide a great tax for countries with higher rates, and could partially solve the economic crisis. James Henry had this to say on the matter: “From another angle, this study is really good news. The world has just located a huge pile of financial wealth that might be called upon to contribute to the solution of our most pressing global problems.“
This would propose that in times of severe hardship, these previously ignored funds could be used to save people, whether that be providing food to drought-stricken Africa or temporary shelter to earthquake victims.
But what do you think? Should these wealthy individuals have to pay up for their clever schemes abroad? Or should they be able to keep the money they have earned? Leave your thoughts below! Make sure you’re logged in first!
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