Sixty years ago, taxes paid by corporations covered one-third of federal revenues. Today, corporations pay only one-tenth of federal revenues. This is largely due to corporations avoiding paying taxes by taking advantage of offshore tax havens. It’s not illegal, exactly, but it’s also not super on the up-and-up.
On November 5, a set of 13.4 million documents related to offshore investment called the Paradise Papers were leaked to the public. The financial affairs of more than 120,000 people and companies are shared in the papers. Early reports say that the amount of money involved in tax evasion schemes is approximately $10 trillion. Trillion.