Fri, Oct 02, 2015 - Page 9 News List

Tax havens a scourge on efforts to eliminate income inequality

By J. Bradford DeLong and Michael M. DeLong

Zucman favors a single global registry — a publicly accessible database detailing the ownership of financial instruments.

The second step would be to shift the corporate tax base from profits reported to have been earned in a country to sales made and wages paid in that country. As Zucman said, a corporation can move its legal headquarters and use mechanisms like transfer pricing to shift its tax burden, but moving its employees across national borders is more difficult, and it cannot move its customers.

If society is ever to combat inequality effectively, truly progressive taxation would have to be a part of the policy mix. However, unless tax havens are eliminated now, there is likely to be a lack of ability to implement it.

J. Bradford DeLong is a professor of economics at the University of California at Berkeley and a research associate at the US National Bureau of Economic Research. Michael DeLong is a community organizer for Ceasefire Oregon.

Copyright: Project Syndicate

This story has been viewed 2373 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top