Trillions Hidden In Foreign Bank Accounts

This is a story that should make most Americans (regardless of political party) very angry. If it doesn't anger you, then you are either among the filthy rich or completely brain-dead. The Tax Justice Network has just released a report on money hidden in offshore bank accounts (in places like Bermuda or the Cayman Islands) to avoid paying taxes. The report was written by James Henry, a former chief economist at the international consulting firm McKinsey & Company.

Using information from the International Monetary Fund, the World Bank, the Bank of International Settlements, and many national governments, Henry estimates that at least $21 trillion (yes, that was TRILLION) is being hidden in secret, tax-free, foreign bank accounts to avoid paying taxes. That's more money than the total economies of the United States and Japan combined. And that may be a lowball number -- the figure could be as high as $32 trillion.

Now all of this money does not come from rich tax-dodgers in the United States (about $800 billion has left Russia since 1990), but a large hunk of it is from this country. Just imagine, if this money had been taxed at a conservative 30% rate it would have yielded an additional $6.3 trillion in revenue for the countries it came from (and taxed at only 20% would have yielded an additional $4.2 trillion), and it could be even more. That money could have kept a lot of countries from having to invoke "austerity" programs, cutting aid to their most needy citizens.

And one of those hiding much of his money in overseas accounts to avoid paying U.S. taxes is Republican presidential nominee Willard Mitt Romney (aka Wall Street Willie). We know he has accounts in the Cayman Islands, Bermuda, Switzerland, and several other foreign countries in "tax havens". What we don't know is just how much money he is hiding overseas -- he could be worth much more than the $250 million he admits to. And since the accounts are secret, we also have no idea how many millions of dollars in U.S. taxes he has dodged.

Now Romney will claim that he is doing nothing illegal by keeping secret funds in these accounts, and he may be right. But it should be illegal, and it most certainly is unethical -- especially in this recession where millions live in poverty and millions more are in danger of falling into poverty through unemployment (and falling wages). While most Americans declare all of their income and pay their appropriate tax on that income, it is just not right that Romney (and other super-rich people) are able to dodge their taxes by hiding money in overseas accounts.

Remember this when you go to the polls next November. By voting for Romney, you will be saying it is OK for the super-rich to evade paying taxes by hiding money overseas. Is that really what you believe? Do you really want a tax evader (who refuses to release his tax returns) as President of the United States?