Paradise Papers Expose Trump Administration Tax Cheats

10 Minutes: the Paradise Papers

Press TV (2018)

This short video provides a capsule summary of the Paradise Papers, 13.4 million electronic files leaked in November 2017 about the wealthy tax dodgers who use offshore tax havens to avoid taxes and conceal illegal financial dealings.

Although the Paradise Papers scandal has received less publicity than the Panama Papers did in 2015, its list of culprits is far more comprehensive. At the top are the Queen of England, Madonna, Bono, Apple, Nike, the Queen of Jordan, the ministers of finance of Canada and Brazil, US Commerce Secretary Wilbur Ross (who used tax havens to conceal illegal dealings with sanctioned Russian businessmen) and Gary Cohen, who wrote Trump’s new tax law. The EU has slapped a $13 billion fine on Apple for tax evasion, which they refuse to pay.

Analysts who have studied both the Paradise and the Panama Papers estimate that approximately $7.8 trillion is held in offshore tax havens or 10% of global GDP.

The best known tax havens are Ireland, the Netherlands, Switzerland and British-controlled Cayman Islands, Bahama, Jersey and the Isle of Mann. There is growing pressure on the British government to crack down on tax and banking policies in their tax haven colonies.

Austerity: A Wealth Transfer from Poor to Rich

We’re Not Broke: The Corporate Tax Cheats of America

Directed by Karin Hayes and Victoria Bruce (2012)

Film Review

We’re Not Broke exposes so-called “austerity” for what it really is: a massive wealth transfer from poor people to rich people. This wealth transfer occurs in two ways – by shifting the tax burden (through tax evasion) from rich people to poor and middle class people and by cutting the public services (schools, libraries, clinics, public transport and infrastructure such as roads, bridges and water service) that create the real economic wealth in society.

This documentary mainly focuses on tax evasion by American corporations who profit off US government infrastructure (especially the court system) but avoid US income taxes by registering their companies in tax havens, such as Ireland, the Bahamas and the Cayman Islands. Among the major US companies that pay no US income tax are Exxon, Chevron, City Group, Pfizer (the drug company that manufactures Viagra), GE, Bank of America and Wells Fargo. Google pays US income tax amounting to 2% of its net profits in US income tax.

I was particularly astonished to learn that US defense contractors (Cisco, Lockheed, Caterpillar, GM and Verizon) – whose primary client is the US government – also participate in these tax avoidance schemes.

The film also focuses on the work of US Uncut, a grassroots organization formed in early 2011. It was modeled after the group UK Uncut. The purpose of both groups was to educate the public about the extent of corporate tax evasion. Sadly the US group seems to have been subsumed by Occupy Wall Street in late 2011. Their website has morphed into a general Internet news site – earlier this year, they endorsed Bernie sanders for president.

In contrast, UK Uncut member groups continue to mobilize grassroots actions protest and civil disobedience around Britain. Their efforts (in conjunction with the Panama Papers scandal) have resulted in new legislation cracking down on British overseas territories (Virgin Islands, Cayman Islands and Jersey) that serve as tax havens. See UK Tightens Tax Laws