Offshore Finance

Government capture has been perpetuated through the removal of property “off shore,” where it is neither regulated nor taxed.

The social contract between Americans and their corporations was supposed to go as follows: In exchange for limited liability and other privileges, corporations were to be held to a set of obligations that legitimatized the powers they were given. But modern corporations have assumed the right to relocate to different jurisdictions, almost at will, irrespective of where they really do business, and thus avoid the constraints of those obligations.

As Nicholas Shaxson writes in Treasure Islands, “The privileges have been preserved and enhanced, but the obligations have withered.” Meanwhile, the U.S. Treasury is estimated to be losing $100 billion annually from off-shore tax abuses.

Copyright 2022 by Robert A. G. Monks