Wednesday, August 20, 2014

THE FREELOADING 1% - A CANCER ON THE ECONOMY




The 1 percent is literally rich beyond measure, depriving nations of billions in tax revenue and obscuring shifts in global inequality.

Research conducted separately by European Central Bank economist Philip Vermeulen and London School of Economics’ Gabriel Zucman show the wealth of the super-affluent -- hidden by tax shelters and nonresponse to questionnaires -- is undercounted. Correcting for similar lapses in income data almost erases progress made from 1988 to 2008 in narrowing the gap between the world’s rich and poor, World Bank research found.

The richest of America’s rich -- the top 0.1 percent with at least $20 million in net wealth -- held 23.5 percent of all U.S. wealth in 2012 after adding in estimates of how much was hidden in offshore tax havens, said Zucman, a visiting scholar at the University of California at Berkeley. That compares with his previous estimate of 21.5 percent.