There’s A Direct Link Between Tax Evasion And Income Inequality

The ultra-wealthy are ultra-wealthier than they may appear — at least, to their respective tax authorities. That’s because, perhaps unsurprisingly, those who exploit offshore tax shelters are not likely members of the average household, but rather those in the top one percent of the one percent of income distribution, a trend that’s increasingly concealed the severity of wealth-inequality over the past several decades, according to two studies published this week.

Using leaked information — namely, the Panama Papers and files from the British bank HSBC — about overseas tax havens and the individuals who exploited them, researchers from the University of California, Berkeley, the Norwegian University of Life Sciences and the University of Copenhagen found that “top 0.01 percent households are much more likely to hide assets abroad than households in the bottom of the top 1 percent.” More specifically,

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