{"id":1911,"date":"2020-02-27T13:54:36","date_gmt":"2020-02-27T11:54:36","guid":{"rendered":"http:\/\/www.liberalglobe.com\/?p=1911"},"modified":"2020-02-27T13:54:37","modified_gmt":"2020-02-27T11:54:37","slug":"the-us-and-its-role-as-the-main-tax-haven-around-the-world","status":"publish","type":"post","link":"https:\/\/www.liberalglobe.com\/?p=1911","title":{"rendered":"The US and its role as the Main Tax Haven around the world"},"content":{"rendered":"\n

When we refer to Tax Havens around the world, we mean all those countries\naround the world that offer an impenetrable secret wealth haven that is not\ntaxed. It is commonplace for such tax havens to be countries that are not\ndistinguished by strong economies or industries but base their prosperity\nsolely on what is called a banking industry-tax haven.<\/p>\n\n\n\n

by Thanos S. Chonthrogiannis<\/strong><\/p>\n\n\n\n

\u00a9<\/em>The law of intellectual\nproperty is prohibited in any way unlawful use\/appropriation of this article,\nwith heavy civil and criminal penalties for the infringer.<\/em><\/em><\/strong><\/p>\n\n\n\n

The U.S. as the world’s main tax haven<\/strong><\/strong><\/p>\n\n\n\n

The   Tax  Justice  Network’s    2020  report, (www.taxjustice.net<\/a>) with the title \u00abFinancial Secrecy Index (FSI):\nwho are the world\u2019s most offenders? The Tax Justice Network podcast special, February\n2020\u00bb in which is referred that important steps have been taken\nto combat tax evasion by throwing the walls of any banking secrecy and privacy of all kinds of bank\ndeposits, it shows another picture of conclusions.<\/p>\n\n\n\n

More specifically, this report also always mentions the ranking of countries around the world based on the Financial Secrecy Index (FSI) which counts in units the degree of  secrecy (banking privacy) of financial centers in the world and the impact this secrecy (privacy) has on global financial flows, that the U.S. despite its global strength at all levels is the second in the world tax haven.<\/p>\n\n\n\n

\"\"
Figure 1: The first ten countries in the world with the highest FSI units<\/strong>
Source: Data from Tax Justice Network (www.taxjustice.net) <\/figcaption><\/figure><\/div>\n\n\n\n

The result of this secrecy and banking privacy regime is to end up in the U.S.\nbanking system funds that are tax-free and unknown activities.<\/p>\n\n\n\n

This type of U.S. tax haven is offered both to private companies and\norganizations that can be illegal, enabling them to avoid taxation, and to\nevade their funds that can be from illegal activities.<\/p>\n\n\n\n

According to the above recent report by the Tax  Justice  Network,  this situation involving the USA,\nwhich accounts for 21.37% of the global offshore financial services market, is\ngetting worse in terms of developing any kind of privacy, banking privacy and\ntax avoidance mechanism for foreigners at both American federation level and\nindividual U.S. states level.<\/p>\n\n\n\n

It is also pointed out that many U.S. privacy mechanisms in terms of\nbanking and tax secrecy have been drafted since the 1970s and not recently.<\/p>\n\n\n\n

The reasons that make the U.S. the world’s main tax haven<\/strong><\/strong><\/p>\n\n\n\n

The 1970s were important for the USA because then the U.S. doctrine for the\ndevelopment of a series of regional wars in Asia began to be implemented in\npractice, which would aim to weaken (economic, political, military, etc.) of\nthe communism and especially the USSR allowing for the U.S. to win the Cold\nWar.<\/p>\n\n\n\n

In addition to developing regional wars, the necessary funds should be\nfound to finance U.S. intelligence operations both in Europe (Greece, Portugal,\nItaly, etc.) and in central and Latin America (e.g. Chile, Nicaragua, Panama) equivalently\nin order to prevent the fall of friendly-Western governments of certain\ncountries which would then pass on communist indirect control.<\/p>\n\n\n\n

Such regional wars in Asia were the Vietnam War in the 1970s, the Soviet-Afghan\nWar (1979-1989) where Taliban’s financing in this war against the USSR in the\n1980s was financing by USA, the First Gulf War (1990-1991), the Iraq War in the\n2000s (2003-2006) and the US War in Afghanistan (2001-present).<\/p>\n\n\n\n

All these wars to be financed seamlessly had to have a seamless flow of\nfunding and capital for consumption. The funds required to be financed were of\nenormous size and of course it was impossible to find in their entirety from\nthe official US federal budget.<\/p>\n\n\n\n

The longitudinal financing of all these wars mentioned above and US secret intelligence\noperations respectively in Europe and Latin America have created huge deficits\nin the US federal budget and in the current balance of their transactions\nrespectively. Something everyone sees today.<\/p>\n\n\n\n

The solution to finding these additional funds needed to finance these wars\nwas given by the creation of a tax haven regime in the US with strong privacy\nand banking secrecy mechanisms for the purpose of accumulation in the US funds\nfrom all over the world that came from opaque and often illegal activities.<\/p>\n\n\n\n

At the same time, however, in addition to secrecy and privacy at the\nfederal level, similar mechanisms are distinguished within the US, namely at\nthe level of individual American states, where certain states such as Delaware and\nNevada are distinguished and offer privacy and banking secrecy mechanisms to\nobscure shell companies aimed at overcoming opacity in these US states in order\nto attract opaque wealth to them that will finance their prosperity at the\nexpense of other American states.<\/p>\n\n\n\n

The consequences of tax havens in other countries<\/strong><\/strong><\/p>\n\n\n\n

The US authorities have so far shown no interest in the fact that the US\nbanking system attracts illegal capital inflows and facilitates tax evasion in\nforeign countries. All services and organizations\u2019 that promote transparency\nglobally have the US at their target.<\/p>\n\n\n\n

In addition, US authorities refuse to inform the authorities of other\nmember countries of the world community of any type of suspicious transaction,\nalthough they oblige other countries to obtain information on such transactions\nfrom other countries.<\/p>\n\n\n\n

Foreigners who evade or break the law in their countries choose the US to\ntransfer their funds there for many reasons, of which the most powerful US\nbanking secrecy offered.<\/p>\n\n\n\n

The problem, however, is that the secrecy and banking privacy offered by US\nmechanisms harm the citizens of other countries whose corrupt economic and\npolitical elites use these offered US mechanisms to flee wealth acquired\nunfairly or illegally in their countries, thereby depriving the taxation of\nthis wealth that would in turn be used to finance the creation of valuable\ninfrastructures in health, education, etc. in their countries.<\/p>\n","protected":false},"excerpt":{"rendered":"

When we refer to Tax Havens around the world, we mean all those countries around the world that offer an impenetrable secret wealth haven…<\/p>\n","protected":false},"author":1,"featured_media":1912,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,860],"tags":[1450,1449,1451,1447,1448,215],"class_list":["post-1911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic","category-fiscal-economics","tag-delaware","tag-fsi","tag-nevada","tag-tax-haven","tag-tax-justice-network","tag-us"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1911"}],"version-history":[{"count":2,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1911\/revisions"}],"predecessor-version":[{"id":1938,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1911\/revisions\/1938"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/media\/1912"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}