A Scan of Critical World Developments
Trillions in Hidden Treasure
The economy is globalizing, but the tax system remains fragmented across two hundred countries, opening ample opportunity for the wealthy to evade paying their fair share. A number of “tax haven” nations welcome foreign-owned assets, keeping depositors’ information confidential and thus making it difficult to determine the magnitude of this shielded wealth. However, a recent study provides the first comprehensive estimate: a staggering $7.6 trillion
, twice the GDP of Germany. This total grew by roughly 25% over the past five years, and, without inernational coordination, it will only continue to grow. The benefits of cooperation are clear: taxing the uncovered assets at current rates would generate nearly $200 billion annually, new revenue that could be applied to countering inequality and climate change. The transnational flow of money demands transnational regulation.
Bodes well for the future
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