Original article: https://www.nytimes.com/2017/11/05/world/paradise-papers.html?_r=0
News broke out this past semester about the Paradise Papers. Basically, if you’re not familiar with the Panama Papers, a bunch of rich people and corporations had their money in these tax havens to avoid paying taxes. Many people are complaining that these individuals and organizations are not paying their fair share of the nation’s taxes.
I agree, but I also think that it will be an inevitable part of our economy so long as globalization continues. The only way to prevent this is to establish a global institution to regulate it, and no nation-state would want to give up their autonomy for something like that, especially if it goes to a slippery slope “world government-esque”.
Companies these days operate multinationally, meaning they cross borders. The resources and capabilities of these corporations are enormous since they are able to manage their way through the ever legal complexities whether it’s outsourcing the manufacturing or importing the goods into the states.
There’s no way to incentivizes paying your taxes unless their are deterrents. That usually comes in one or two ways: (1) a global institution as I mentioned early regulating the economy or (2) the punishments for getting caught could lead to severe time in prison. Crimes like these often don’t do much to deter people simply because the punishment isn’t as punitive (i.e. paying a fine) as say doing drugs (which disproportionately affect people of color, but another topic.)