How Corporations and the Wealthy Avoid Taxes (and How to Stop Them)

The United States loses, according to my estimates, close to $70 billion a year in tax revenue due to the shifting of corporate profits to tax havens. That’s close to 20 percent of the corporate tax revenue that is collected each year. This is legal.

Meanwhile, an estimated $8.7 trillion, 11.5 percent of the entire world’s G.D.P., is held offshore by ultrawealthy households in a handful of tax shelters, and most of it isn’t being reported to the relevant tax authorities. This is… not so legal.

 ..  In 2015, $15.5 billion in profits made their way to Google Ireland Holdings in Bermuda even though Google employs only a handful of people there.
.. 63 percent of all the profits made outside of the United States by American multinationals are now reported in six low- or zero-tax countries:
  • the Netherlands,
  • Bermuda,
  • Luxembourg,
  • Ireland,
  • Singapore and
  • Switzerland.
.. After learning Irish authorities were going to close loopholes it had used, Apple asked a Bermuda-based law firm, Appleby, to design a similar tax shelter on the English Channel island of Jersey
Appleby duly obliged, and Jersey became the new home of the (previously Irish) companies Apple Sales International and Apple Operations International.
.. In 2015, the Swiss Leaks revealed the owners of bank accounts at HSBC Switzerland, and in 2016 the Panama Papers revealed those of the shell companies created by the Panamanian law firm Mossack Fonseca. These showed that 50 percent of the wealth held in tax havens belongs to households with more than $50 million in net wealth
.. In the Paradise Papers, we see that these are not only Russian oligarchs or Belgian dentists who use tax havens, but rich Americans too.
.. For a long time, the bulk of it was held in Switzerland, but a fast-growing fraction is now in Hong Kong, Singapore and other emerging havens.

The most compelling way to do this would be to create comprehensive registries recording the true individual owners of real estate and financial securities, including equities, bonds and mutual fund shares.
.. One common objection to financial registries is that they would impinge on privacy. Yet countries have maintained property records for land and real estate for decades.
.. comprehensive registries would make it possible to not only reduce tax evasion, but also curb money laundering, monitor international capital flows, fight the financing of terrorism and better measure inequality.

Donald Trump’s Crisis of Legitimacy

morning papers were full of stories demonstrating that his political legitimacy, or what small reserves he had left of it, was steadily draining away. After days of prevaricating, America’s business leaders were finally abandoning him en masse.

  • Top generals from all five military branches were issuing statements implicitly rebuking him.
  • Many White House staffers were despairing of him.
  • And even some members of the Society for the Protection of Spineless Conservative Politicians, otherwise known as the leadership of the Republican Party, were starting to distance themselves from him, albeit hesitantly and anonymously, via leaks to journalists and statements from well-connected intermediaries

.. “I see no equivalence between those who propound fascist views and those who oppose them,” Theresa May, the British Prime Minister, said in a statement.

.. It is now clear that when Trump announced on Wednesday that he was disbanding two White House advisory councils made up of C.E.O.s and other business bigwigs, he was telling another one of his tall tales. One of the groups, a council on manufacturing, had already agreed to disband itself, because its members could no longer justify (to their employees, stockholders, and customers) coöperating with the cretin who said there were some “very fine people” among the torch-wielding protesters who marched through Charlottesville on Friday night, chanting “blood and soil” and “Jews won’t replace us.”

.. As of this writing, none of Trump’s aides has resigned in protest at the President’s statements. But a number of them have been busy getting the story out that they are mad as hell.

  • Three different sources told the Times that Gary Cohn, Trump’s top economic adviser, who is Jewish, was incensed by the President’s remarks. The Washington Post reported that
  • John Kelly, the former Marine general who took over as the White House chief of staff a couple of weeks ago, with a mandate to impose some order on all the chaos, had been left “deeply frustrated and dismayed;
  •  Bloomberg reported that Steve Mnuchin, the Treasury Secretary, who was standing next to Trump at Tuesday’s Trump Tower press conference, had gathered his staff together and assured them that he had no idea that the President was going to say what he did.

.. Before composing his ode to the statues of Confederate leaders, he tore into two Republican senators who had dared to criticize him by name for what he said about Charlottesville: Lindsey Graham, of South Carolina, and Jeff Flake, of Arizona. In one tweet, he described Graham as a “publicity seeker.”

In another, he endorsed a little-known Republican politician who is challenging Flake in a primary race: “Great to see that Dr. Kelli Ward is running against Flake Jeff Flake, who is weak on borders, crime and a non-factor in Senate. He’s toxic!”

.. Bannon described the Unite the Right marchers as “a fringe element” and “a collection of clowns.” But that seemed like an effort to have it both ways, which is a familiar Bannon tactic. As the head of Breitbart News, he gave an influential platform to elements of the alt-right but vehemently denied that the site was racist.

.. “If the left is focused on race and identity, and we go with economic nationalism, we can crush the Democrats,” Bannon told Kuttner.

..“Trump is using the precious capital of the bully pulpit to talk about confederate monuments in between savage attacks on fellow Republicans,” Holmes, the former aide to McConnell, told Politico Playbook. “Just think about that.

  • Not tax reform.
  • Not repeal and replace.
  • Not North Korean nuclear capabilities.
  • No focused critiques on extremely vulnerable Democrats who have opposed him at every possible turn.”

.. While McConnell and Paul Ryan, the Speaker of the House, have both put out statements saying that racism and white supremacism have no place in the G.O.P., neither of them has explicitly criticized Trump. Even now, most Republicans are too intent on pursuing their regressive policy agenda, and too frightened of incurring the wrath of the Trump-supporting hordes going into the 2018 midterms, to do what almost all of them must know, deep down, is the right thing.

.. Outside the arena of national security, the Presidency is a weak office; to get anything substantial done, the person in the Oval Office has to put together coalitions, bringing along powerful people and interest groups. As the health-care fiascodemonstrated, Trump wasn’t very good at that stuff to begin with—forgive the understatement—and he has just greatly compounded his difficulties.

.. By dint of his pigheadedness, or prejudice, or both, he has moved onto political ground that makes it virtually impossible for other people in influential positions ..  to stand with him, or even to be seen to coöperate with him. That is what happens when a President throws away his own legitimacy.

.. Trump may have convinced himself that he doesn’t need political allies, or corporate advisers, or anybody else—that he can bully his opponents into submission and succeed through simple force of will. Maybe he thinks that invoking the memories of Lee and Jackson, the Southern battlefield commanders, will help his cause. It won’t: the fate of the Confederacy was settled more than a hundred and fifty years ago, and right now, Trump’s Presidency seems headed to a similarly ignominious ending.

Bannon in Limbo as Trump Faces Growing Calls for the Strategist’s Ouster

Rupert Murdoch has repeatedly urged President Trump to fire him. Anthony Scaramucci, the president’s former communications director, thrashed him on television as a white nationalist. Lt. Gen. H. R. McMaster, the national security adviser, refused to even say he could work with him.

.. So far, Mr. Trump has not been able to follow through — a product of his dislike of confrontation, the bonds of foxhole friendship forged during the 2016 presidential campaign and concerns about what mischief Mr. Bannon might do once he leaves the protective custody of the West Wing.

.. Despite his marginalization, Mr. Bannon consulted the president repeatedly over the weekend as Mr. Trump struggled to respond to the neo-Nazi rally in Charlottesville, Va. In general, Mr. Bannon has cautioned the president not to criticize far-right activists too severely for fear of antagonizing a small but energetic part of his base.

.. Mr. Bannon also has admirers, including Representative Mark Meadows, the North Carolina Republican and the chairman of the House Freedom Caucus, who said that without Mr. Bannon, “there is a concern among conservatives that Washington, D.C., will influence the president in way that moves him away from those voters that put him in the White House.”

And Representative Steve King, Republican of Iowa and an immigration hard-liner, said that shoving out Mr. Bannon would leave conservatives “crushed.”

.. Mr. Bannon, who adamantly rejects claims that he is a racist or a sympathizer of white supremacists, is in trouble with John F. Kelly, a retired Marine general and the new White House chief of staff. Mr. Kelly has told Mr. Trump’s top staff that he will not tolerate Mr. Bannon’s shadowland machinations, according to a dozen current and former Trump aides and associates with knowledge of the situation.

Mr. Bannon’s alleged crimes:

  • Leaking nasty stories about General McMaster and other colleagues he deems insufficiently populist,
  • feuding bitterly with Mr. Trump’s son-in-law, Jared Kushner, and
  • creating his own cadre within the West Wing that operates outside the chain of command.

.. One of his main sins in the eyes of the president is appearing to revel in the perception that he is the mastermind behind the rise of a pliable Mr. Trump. The president was deeply annoyed at a Time magazine cover

.. Others say Mr. Bannon’s continued presence in the White House is not serving the president’s interests.

“He’s got to move more into the mainstream, he’s got to be more into where the moderates are and the independents are,” said Mr. Scaramucci

.. Top administration officials like to joke that working for Mr. Trump is like toiling in the court of Henry VIII.

.. Mick Mulvaney, the president’s budget director, recently handed out copies of the play “A Man for all Seasons,” about the last years of Sir Thomas More, Henry’s chancellor, who was executed for failing to endorse Henry’s split with Rome.

.. From the start, Mr. Bannon, 63, has told people in his orbit that he never expected to last in his current position longer than eight months to a year, and hoped to ram through as much of his agenda as he could

.. Mr. Bannon’s ability to hang on as Mr. Trump’s in-house populist is in part because of his connections to a handful of ultrarich political patrons, including Sheldon G. Adelson, the pro-Israel, Las Vegas-based casino magnate.

.. He is especially close to the reclusive conservative billionaire Robert Mercer and his daughter, Rebekah, who is a frequent sounding board for Mr. Bannon.

.. has suggested that he might direct his energies at creating a movement to challenge mainstream Republicans too timid to pursue the president’s agenda, like Speaker Paul D. Ryan.

.. Mr. Bannon’s cause is being damaged, people close to the president say, by a war he is waging against General McMaster.

.. the national security adviser, whom he believes to be prodding the president toward possible war with North Korea and Venezuela.

.. Mr. Bannon’s protégé, chief speechwriter and policy director, Stephen Miller, shares his populist agenda — centered around a controversial immigration crackdown — and has become one of the president’s favorite aides.

.. Despite his image in the news media as a confrontational ideologue, Mr. Miller has proved to be a deft operator who has ingratiated himself to Mr. Kushner.

FBI Raided Home of Paul Manafort in Russia Probe

Federal agents raided Virginia home of former Trump campaign chairman to obtain documents and other material

.. According to a January report from the U.S. intelligence community, the interference was directed by the highest levels of the Russian government. The tactics included

  • hacking state election systems,
  • stealing and leaking information from party committees and political strategists, and
  • using social media and other outlets to disseminate negative stories about Mrs. Clinton and positive ones about Mr. Trump.