Extreme Inequality Fuels the Rigged World Economy Shown in the Pandora Papers

Extreme Inequality Fuels the Rigged World Economy Shown in the Pandora Papers

Extreme Inequality Fuels the Rigged World Economy Shown in the Pandora Papers

The United States now rivals the Cayman Islands and European protectorates as an international tax haven.

Facebook
Twitter
Email
Flipboard
Pocket

EDITOR’S NOTE: Each week we cross-post an excerpt from Katrina vanden Heuvel’s column at the WashingtonPost.com. Read the full text of Katrina’s column here.

The Pandora Papers—a treasure trove of nearly 12 million leaked financial records from 14 different “offshore” wealth-service firms—expose the various ways billionaires, corporations, drug traffickers and con men secret their money in notorious tax havens such as Belize, the Seychelles, the British Virgin Islands and Sioux Falls, S.D.

Yes, Sioux Falls. It turns out that, with states like South Dakota and Delaware leading the way, the United States now rivals the Cayman Islands and European protectorates for those trying to hide money, evade taxes or escape judgments. Trident Trust, for example, located in Sioux Falls, handles some $360 billion in trusts, with clients who have been accused of money laundering, bribery, and even human rights abuses. The trusts protect the clients (mostly foreigners) from taxing authorities, from creditors, from foreign governments and from settlements of those who have been abused.

To win this race to the bottom, South Dakota’s Republican legislature passed whatever laws the corporate lawyers wanted. Nearly 30 years ago, the state effectively abolished the “rule against perpetuities,” essentially giving the wealthy a way to evade taxes generation after generation.

Read the full text of Katrina’s column here.

Dear reader,

I hope you enjoyed the article you just read. It’s just one of the many deeply reported and boundary-pushing stories we publish every day at The Nation. In a time of continued erosion of our fundamental rights and urgent global struggles for peace, independent journalism is now more vital than ever.

As a Nation reader, you are likely an engaged progressive who is passionate about bold ideas. I know I can count on you to help sustain our mission-driven journalism.

This month, we’re kicking off an ambitious Summer Fundraising Campaign with the goal of raising $15,000. With your support, we can continue to produce the hard-hitting journalism you rely on to cut through the noise of conservative, corporate media. Please, donate today.

A better world is out there—and we need your support to reach it.

Onwards,

Katrina vanden Heuvel
Editorial Director and Publisher, The Nation

Ad Policy
x