30 July 2017   Leave a comment

Offshore banking is a tactic that is often used to avoid taxation.  Many individuals and corporations use offshore banking by moving money to places with low taxation in a manner that their home countries cannot identify.  The Apple corporation, for example, plays a tax of 0.005% on its profits in Europe.  Given the nature of offshore banking, we do not really have good estimates of how much tax revenue is lost, but responsible estimates suggest that between $500 and $650 billion of tax revenues are lost annually by this technique.  According to Oxfam:

“Over the last few decades, however, figures show that the tax contributions of large corporations are diminishing as governments compete in a race to the bottom on corporate taxation. Over the last thirty years, net profits posted by the world’s largest companies more than tripled in real terms, from $2 trillion in 1980 to $7.2 trillion by 2013”.

Needless to say, the costs of setting up an offshore account are prohibitively expensive for those with lesser means.  Globalization works for some and against others.

The United States Effective Corporate Tax Rate (1947-2011)

At least 13 people died across Venezuela in protests against the election of the constituent assembly.  With the opposition boycotting the election, there is little question that the constituent assembly will be approved.  But Venezuela has been censured by many other countries for the actions of President Maduro.  And the US, which has already levied sanctions on specific individuals in the Venezuelan government will probably add additional sanctions against Venezuela.  It is hard to see how Maduro can emerge from this crisis even with a rewritten constitution.

On this day in 1966, “Wild Thing” by The Troggs reached #1 on the Billboard charts.  It was their only real hit, but it has endured.

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Posted July 30, 2017 by vferraro1971 in World Politics

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