[Press PLAY and you can listen to a reading of this (fairly long) article.]
About money and wealth
This could be Paradise, if not for The Superrich!
Disclaimer 😉 :
I am not a economist nor have i studied the socio-economic impact of excessive accumulated wealth.
I am also not an investigative journalist who uncovers the machinations of banks, stock traders, short sellers and the like.
You should definitely not ask me to give advise how best to invest your cash on the stock market.
I simply have no idea about that! 🙄
Neither have i deep knowledge of Crypto money, Tokens, Crypto Exchanges, non-fungible tokens (NFTs) and such.
But i admit to have strong opinions about all of that above.
So i must say here, that i am a little bit biased 🙂
While writing about Universal Basic Income and other Economic Utopias, it impossible to ignore the facts of the blatant Economic Inequity, this unbelievable huge Wealth Gap between “the Have’s and the Have-not’s” in our world.
And the fundamentally important questions that arise from such a consideration.
And since i am not really an expert or really deeply informed, i asked my dear Research Assistant to, well, assist me 😎
So here is the rather interesting conversation that i had with my well informed Assistant:
* By the way, the voice you hear reading this article for you is the voice of Anna, my super-smart Research Assistant
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Ok my dear Assistant, now would you please do some research what the eminent thinkers and economists of the world say about the Wealth Gap and economic inequity in our world.
And if possible summarize that and write a short essay on the theme: “This could be Paradise, if not for The Superrich!”
Sure thing, here it is, my take on: This Could Be Paradise, If Not for the Superrich!
In the age-old storyline of paradise lost, the boogeyman was often portrayed as a serpent or some other symbol of temptation. However, in today’s world, if one were to contemplate the concept of the lost paradise, the fingers might point towards a different entity altogether: the superrich.
As we envision societies where equality, fairness, equity, justice, and sustainability flourish, it becomes increasingly evident that the disproportionate influence and power of the superrich can undermine the very fabric of such aspirations, such a utopian dream.
Paradise, in its essence, encapsulates a vision of harmony, abundance, and contentment. It’s a place where every individual has the opportunity to thrive, where the environment is preserved for future generations, and where social cohesion fosters a sense of belonging and support. Yet, in many contemporary societies, this vision remains elusive, overshadowed by the staggering wealth accumulation and unchecked power wielded by a select few.
One of the most glaring manifestations of the impact of the superrich is the exacerbation, the exponential increase of inequality. While the wealth gap has always been a feature of human societies to some extent, the concentration of wealth in the hands of a tiny fraction of the population has reached unprecedented levels. This concentration not only perpetuates economic disparities but also translates into disparities in access to basic resources such as healthcare, education, and housing. In such a scenario, the notion of paradise is rendered hollow, as the majority struggle to make ends meet while a privileged minority basks in opulence.
Moreover, the influence of the superrich extends far beyond the economic realm, permeating into the political and social spheres. Through lobbying, campaign contributions, and outright manipulation, the superrich often shape public policy to serve their own interests, further entrenching their power and perpetuating systems of oppression. This hijacking of democracy undermines the principles of justice and fairness upon which any paradise must be built.
Environmental degradation is yet another consequence of the unchecked power of the superrich. In their pursuit of profit maximization, corporations owned and controlled by the superrich often prioritize short-term gains over the long-term health of the planet. From deforestation to fossil fuel extraction, their actions not only degrade natural ecosystems but also exacerbate climate change, posing an existential threat to life on Earth. In a true paradise, stewardship of the environment would be paramount, ensuring that future generations inherit a planet teeming with life and abundance.
Furthermore, the cultural hegemony exerted by the superrich perpetuates values of consumerism, individualism, and competition, which run counter to the communal ethos inherent in the idea of paradise. Rather than fostering connections and cooperation, this ethos promotes alienation and division, sowing the seeds of discord in societies already frayed by inequality and injustice.
However, despite the grim picture painted by the dominance of the superrich, there is room for hope. Movements advocating for systemic change, such as calls for wealth redistribution, corporate accountability, and campaign finance reform, are gaining momentum around the world. Grassroots initiatives aimed at building alternative economic models based on principles of cooperation, sustainability, and social justice are flourishing. The very notion of paradise is being reimagined not as a distant utopia, but as a tangible possibility within our grasp if we collectively confront and dismantle the structures that uphold the supremacy of the superrich.
Well, thank you, that is superbly expressed!
I fully agree with your assessment.
I’d be happy if i could phrase all of that so adequately 😎
As far as I know, globally, the top 10% of the world’s population own nearly three-quarters of the world’s wealth, while half the world’s population has almost no wealth.
And the top 1% of wealth holders globally own roughly 44% of the world’s wealth.
I would call this a rather perverse situation!
As of April 2024, there are about 59.3 million Millionaires worldwide, not counting the Billionaires 😉
According to the Forbes annual list of the world’s Billionaires, in 2024 there are a record 2,781 Billionaires with a total net wealth of $14.2 trillion.
So, who are they, those ….. SUPERRICH?
A quick Google Search on some economic websites lists a lot of them.
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So i ask my Assistant to compile a list of just the Top of the Crop:
As of 2024, the ranking of the ten richest individuals on Earth, along with estimates of their net worth and the sources of their wealth, might look something like this:
1. Elon Musk
– Net Worth: $300 billion = $300,000,000,000.-
– Source: Tesla, SpaceX, Neuralink, The Boring Company
2. Jeff Bezos
– Net Worth: $250 billion
– Source: Amazon
3. Bernard Arnault
– Net Worth: $180 billion
– Source: LVMH (Louis Vuitton Moet Hennessy)
4. Bill Gates
– Net Worth: $130 billion
– Source: Microsoft, Cascade Investment
5. Mark Zuckerberg
– Net Worth: $120 billion
– Source: Facebook (Meta Platforms)
6. Larry Page
– Net Worth: $110 billion
– Source: Alphabet (Google), Other Ventures
7. Sergey Brin
– Net Worth: $110 billion
– Source: Alphabet (Google), Other Ventures
8. Larry Ellison
– Net Worth: $100 billion
– Source: Oracle Corporation
9. Warren Buffett
– Net Worth: $90 billion
– Source: Berkshire Hathaway, Investments
10. Mukesh Ambani
– Net Worth: $85 billion
– Source: Reliance Industries Limited
It’s important to note that these estimates can fluctuate due to various factors such as stock market performance, business decisions, and economic conditions. Additionally, the sources of wealth listed here are the primary sources associated with each individual, but many of them have diversified investments and holdings across multiple industries.
Now i checked on wikipedia to find a definitions of the term “net-worth of a person”:
In the context of superrich individuals, net worth refers to the total value of their assets minus their liabilities.
Assets include various holdings such as stocks, real estate, business interests, and other investments, while liabilities encompass debts and obligations.
Net worth provides a snapshot of an individual’s overall financial position and is often used as a measure of wealth and financial success.
For the superrich, whose wealth is typically vast and diversified, net worth serves as an indicator of their economic power and influence in society.
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Now, my Assistant, please find me a list of the wealthiest companies and corporations in the world and what they are worth:
Certainly! Here’s a list of some of the wealthiest corporations/firms in 2024, along with estimates of their net worth:
1. Apple Inc.
– Industry: Technology (Consumer Electronics, Software)
– Estimated Worth: $2.5 trillion = $2,500,000,000,000.-
2. Saudi Aramco
– Industry: Oil and Gas (Energy)
– Estimated Worth: $2.0 trillion
3. Microsoft Corporation
– Industry: Technology (Software, Cloud Computing)
– Estimated Worth: $2.2 trillion
4. Amazon.com, Inc.
– Industry: E-commerce, Technology (Retail, Cloud Computing)
– Estimated Worth: $1.8 trillion
5. Alphabet Inc.
– Industry: Technology (Internet Services, Search, Advertising)
– Estimated Worth: $2.0 trillion
6. Tesla, Inc.
– Industry: Automotive, Energy (Electric Vehicles, Renewable Energy)
– Estimated Worth: $900 billion
7. Berkshire Hathaway Inc.
– Industry: Conglomerate (Investments, Insurance, Railroads, Utilities)
– Estimated Worth: $600 billion
8. Tencent Holdings Limited
– Industry: Technology (Internet, Gaming, Social Media)
– Estimated Worth: $800 billion
9. Meta Platforms (formerly Facebook, Inc.)
– Industry: Technology (Social Media, Virtual Reality)
– Estimated Worth: $1.0 trillion
10. Johnson & Johnson
– Industry: Healthcare (Pharmaceuticals, Medical Devices, Consumer Health)
– Estimated Worth: $450 billion
These estimates reflect the total market capitalization or valuation of these companies as of 2024. They represent some of the most valuable and influential corporations across various sectors of the global economy.
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Great, thank you!
Now please find me a listing for the richest Nations on earth. And add some relevant numbers:
Certainly! Here’s a list of some of the richest nations on Earth, along with relevant economic indicators such as GDP (Gross Domestic Product) and GDP per capita:
1. United States
– GDP: Approximately $24 trillion
– GDP per capita: Approximately $70,000
2. China
– GDP: Approximately $16 trillion
– GDP per capita: Approximately $11,000
3. Japan
– GDP: Approximately $6 trillion
– GDP per capita: Approximately $48,000
4. Germany
– GDP: Approximately $4.5 trillion
– GDP per capita: Approximately $54,000
5. India
– GDP: Approximately $3 trillion
– GDP per capita: Approximately $2,200
6. United Kingdom
– GDP: Approximately $3 trillion
– GDP per capita: Approximately $45,000
7. France
– GDP: Approximately $3 trillion
– GDP per capita: Approximately $44,000
8. Brazil
– GDP: Approximately $2.5 trillion
– GDP per capita: Approximately $12,000
9. Italy
– GDP: Approximately $2.5 trillion
– GDP per capita: Approximately $42,000
10. Canada
– GDP: Approximately $2.2 trillion
– GDP per capita: Approximately $58,000
These figures are approximate and based on data from recent years. The ranking of the richest nations is often determined by factors such as GDP, GDP per capita, and overall economic strength.
Some definitions, according to wikipedia:
GDP, or Gross Domestic Product,
is a measure of the total monetary value of all goods and services produced within a country’s borders within a specific time period, typically annually or quarterly.
It serves as an indicator of a nation’s economic output and overall economic health.
GDP per capita,
is a measure of the GDP of a country divided by its population.
It provides an average representation of the economic output per person in a country and is often used to compare the economic prosperity of different nations.
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Now, to get an idea about the Gap of Wealth Distribution between Nations on Earth, please compile a list of the Poorest Nations on Earth, in terms of GTP:
Certainly! Here’s a list of some of the poorest countries on Earth, along with their GDP and GDP per capita:
1. Burundi
– GDP: Approximately $4.3 billion
– GDP per capita: Approximately $300
2. South Sudan
– GDP: Approximately $5.7 billion
– GDP per capita: Approximately $450
3. Malawi
– GDP: Approximately $7.6 billion
– GDP per capita: Approximately $400
4. Niger
– GDP: Approximately $9.5 billion
– GDP per capita: Approximately $500
5. Liberia
– GDP: Approximately $3.5 billion
– GDP per capita: Approximately $700
6. Democratic Republic of the Congo (DRC)
– GDP: Approximately $48 billion
– GDP per capita: Approximately $600
7. Mozambique
– GDP: Approximately $15 billion
– GDP per capita: Approximately $500
8. Central African Republic (CAR)
– GDP: Approximately $2.5 billion
– GDP per capita: Approximately $500
9. Madagascar
– GDP: Approximately $13 billion
– GDP per capita: Approximately $500
10. Sierra Leone
– GDP: Approximately $4 billion
– GDP per capita: Approximately $600
These figures highlight the economic challenges faced by these nations, including low GDP and GDP per capita, limited infrastructure, and high levels of poverty.
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Now please check in with socio-economical databases and make a informed guess which sections of people on earth are the financially poorest people:
The financially poorest people on Earth are typically found in regions characterized by extreme poverty, limited access to resources, and inadequate infrastructure. While poverty is a complex and multifaceted issue, several groups are particularly vulnerable to financial hardship:
Rural Communities:
People living in rural areas, especially in developing countries, often face significant economic challenges. Limited access to education, healthcare, and economic opportunities can contribute to persistent poverty in rural communities.
Informal Workers:
Many individuals work in the informal sector, which includes jobs that are not regulated or protected by labor laws. These workers often lack job security, benefits, and stable incomes, making them vulnerable to financial instability.
Women and Children:
Women and children are disproportionately affected by poverty due to factors such as limited access to education, healthcare, and economic opportunities. Gender inequalities in employment, wages, and land ownership further exacerbate their vulnerability to poverty.
Minority and Indigenous Groups:
Minority and indigenous communities often face discrimination and marginalization, leading to limited access to education, healthcare, and economic opportunities. These factors contribute to higher poverty rates among these populations.
Refugees and Displaced Persons:
Refugees and internally displaced persons (IDPs) are often forced to flee their homes due to conflict, persecution, or natural disasters. These populations face significant economic challenges, including limited access to resources, employment, and social services.
Economic and Climate Refugees are part of this group and will be in ever growing numbers in the future.
People with Disabilities:
People with disabilities often face barriers to employment, education, and social inclusion, which can contribute to poverty and economic marginalization.
Elderly Individuals:
Elderly individuals, particularly those without adequate social security or pension benefits, may struggle to meet their basic needs in old age, especially if they lack familial support or access to healthcare.
It’s important to recognize that poverty is a complex and systemic issue influenced by factors such as socio-economic status, political instability, and structural inequalities.
Efforts to address poverty require comprehensive strategies that address the root causes and empower marginalized communities to improve their economic well-being.
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Now, if you’d make a wild guess!
The poorest peoples on earth, how much can they spend per day to get by?
It’s challenging to provide a figure as the cost of living varies significantly depending on factors such as location, family size, and access to resources. However, in extremely impoverished regions where people live below the poverty line, individuals may spend just a few dollars per day to meet their basic needs.
In some of the poorest areas of the world, individuals might spend as little as $1 to $2 per day on essentials such as food, water, shelter, and clothing. This amount may fluctuate depending on factors such as inflation, local market prices, and seasonal variations in income opportunities.
However, it’s important to note that living on such a minimal budget often means sacrificing basic needs and living in conditions of extreme deprivation. Many people in these circumstances struggle to access adequate nutrition, healthcare, education, and other essential services, perpetuating a cycle of poverty and hardship.
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What do the super-rich folks on earth do with their accumulated wealth?
The super-richest people on Earth often have diverse ways of managing and utilizing their wealth. While specific actions vary from individual to individual, here are some common ways in which they may deploy their financial resources:
1. Luxury Consumption:
Super-wealthy individuals may indulge in luxury goods and experiences, including high-end properties, yachts, private jets, luxury cars, designer clothing, fine art, and exclusive travel experiences.
– Investments:
Many super-wealthy individuals invest their money in various asset classes such as stocks, bonds, real estate, and private equity. These investments can generate additional income streams and provide opportunities for capital appreciation.
– Business Ventures:
Some wealthy individuals continue to invest in or start new business ventures, leveraging their financial resources, expertise, and networks to pursue entrepreneurial opportunities and generate returns on investment.
– Political Influence:
Wealthy individuals may use their financial resources to influence politics and public policy through lobbying, campaign contributions, and funding political campaigns or advocacy groups aligned with their interests.
– Estate Planning:
Many super-rich individuals engage in comprehensive estate planning to manage their wealth across generations, including setting up trusts, establishing inheritance plans, and minimizing tax liabilities.
– Social Status and Recognition:
Wealth can also be used to enhance social status and gain recognition through philanthropy, patronage of the arts, sponsorship of cultural events, and participation in high-profile social circles.
– Impact Investing:
Some wealthy individuals may engage in impact investing, seeking financial returns while also generating positive social or environmental impact through investments in socially responsible businesses or projects.
– Philanthropy:
A significant portion of the wealth of the super-rich is often dedicated to philanthropic endeavors. They may establish charitable foundations, donate to causes they care about, and support initiatives aimed at addressing social, environmental, and humanitarian challenges.
Overall, the utilization of wealth by the super-richest individuals is influenced by a combination of personal values, interests, and strategic considerations aimed at maximizing financial returns, societal impact, and personal fulfillment.
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Can you give me an idea how the wealth of the super-rich, the Millionaires and Billionaires of the world is taxed?
The taxation of the wealth of the superrich varies significantly depending on factors such as their country of residence, the source of their wealth, and applicable tax laws.
Here are some common ways in which the wealth of the superrich is taxed:
Income Tax:
One of the primary forms of taxation for the superrich is income tax, which is levied on income earned from various sources such as salaries, wages, investments, and business profits. Income tax rates can vary based on income levels and are often progressive, meaning that higher-income individuals are taxed at higher rates.
Capital Gains Tax:
Capital gains tax is imposed on the profits earned from the sale of assets such as stocks, bonds, real estate, and other investments. The rate of capital gains tax may vary depending on factors such as the holding period of the asset and the tax jurisdiction.
Corporate Tax:
Superrich individuals who own or control corporations may be subject to corporate tax on the profits generated by their businesses. Corporate tax rates vary by country and can impact the amount of wealth that ultimately accrues to the individual shareholders.
Inheritance and Estate Tax:
Inheritance and estate taxes are levied on the transfer of wealth from one generation to the next, either through gifts or inheritance. These taxes may apply to assets such as real estate, investments, and other forms of wealth passed down to heirs upon the death of the owner.
Wealth Tax:
Some countries impose a wealth tax, which is levied annually on the total value of an individual’s assets above a certain threshold. Wealth taxes are designed to address wealth inequality by targeting the assets of the wealthiest individuals.
Property Tax:
Property tax is imposed on the value of real estate owned by individuals, including residential and commercial properties. Property tax rates can vary depending on the location of the property and local tax laws.
Tax Avoidance and Evasion:
Despite the existence of various forms of taxation, some superrich individuals may engage in tax planning strategies to minimize their tax liabilities, including the use of tax havens, offshore accounts, and complex financial structures. Tax evasion, which involves deliberately underreporting income or concealing assets to evade taxes, is illegal and subject to penalties.
The taxation of the wealth of the superrich is a complex and multifaceted issue, with policymakers continually grappling with questions of tax fairness, efficiency, and enforcement. Efforts to address tax evasion and ensure that the wealthiest individuals contribute their fair share to society remain ongoing challenges for tax authorities around the world.
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I guess many of those folks are pretty clever and have an armada of tax advisers on their bankroll, right? 😎
How do some superrich people avoid taxation?
Some superrich individuals employ various strategies to minimize their tax liabilities or avoid taxation altogether. While some of these strategies are legal and commonly used for tax planning purposes, others may involve illegal activities such as tax evasion. Here are some ways in which superrich individuals may avoid taxation:
Offshore Tax Havens:
One common method used by the superrich to avoid taxation is to hold assets or establish accounts in offshore tax havens with favorable tax laws and regulations. These jurisdictions may offer low or zero tax rates on certain types of income, allowing individuals to shield their wealth from taxation in their home countries.
Complex Financial Structures:
Superrich individuals may utilize complex financial structures such as trusts, shell companies, and partnerships to minimize their tax liabilities. These structures can involve routing income and assets through multiple entities in jurisdictions with lenient tax laws, effectively reducing the amount of taxable income.
Tax Credits and Deductions:
High-net-worth individuals may take advantage of tax credits and deductions available in their home countries to reduce their taxable income. These credits and deductions may be available for expenses such as charitable contributions, mortgage interest, and business expenses.
Capital Gains Deferral:
Some superrich individuals may defer realizing capital gains by holding onto appreciating assets instead of selling them. By delaying the sale of assets, they can postpone the recognition of capital gains and defer taxation on the profits.
Legal Loopholes:
The tax code in many countries contains loopholes and provisions that can be exploited by savvy taxpayers to reduce their tax liabilities. Superrich individuals may employ tax professionals and lawyers to identify and exploit these loopholes legally.
Tax Treaties and International Structures:
Superrich individuals with multinational businesses or investments may leverage tax treaties and international structures to minimize their tax burdens. By structuring their affairs across multiple jurisdictions, they can take advantage of favorable tax treatment in different countries.
Tax Evasion:
In some cases, superrich individuals may engage in illegal activities such as tax evasion to avoid paying taxes. This can involve deliberately underreporting income, hiding assets, or using fraudulent schemes to evade taxation. Tax evasion is a criminal offense punishable by fines, penalties, and imprisonment.
It’s important to note that while some tax avoidance strategies are legal and commonly used for tax planning purposes, others may cross the line into illegal tax evasion. Tax authorities around the world are increasingly cracking down on tax evasion and aggressive tax planning by implementing stricter regulations, enhancing enforcement efforts, and promoting international cooperation.
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Any idea who is helping the superrich to evade taxation? I guess thats a lot of money they “save” at the end of the day. 🙄
The facilitators of tax evasion for the superrich can include a range of individuals and entities, including:
– Tax Advisors and Consultants:
Tax professionals such as accountants, tax lawyers, and financial advisors often play a key role in advising superrich individuals on tax planning strategies. While the majority of tax advisors operate within the bounds of the law, some may advocate for aggressive tax planning techniques that push legal boundaries or exploit loopholes to minimize tax liabilities.
– Offshore Financial Institutions:
Offshore banks, financial institutions, and trust companies located in jurisdictions with favorable tax laws can provide services to superrich individuals seeking to shield their wealth from taxation. These institutions may offer confidentiality, asset protection, and tax optimization services that enable clients to evade taxation in their home countries.
– Wealth Management Firms:
Wealth management firms and private banks cater to the needs of high-net-worth individuals by providing customized investment and financial planning services. While many of these firms operate legitimately, some may facilitate tax evasion by offering offshore investment vehicles, complex financial structures, and other services designed to minimize tax liabilities.
– Corporate Service Providers:
Companies that specialize in corporate services, including the formation and administration of companies, trusts, and other legal entities, can assist superrich individuals in establishing offshore structures for tax planning purposes. These service providers may help clients navigate the complexities of international tax laws and regulations to minimize their tax burdens.
– Legal Professionals:
Lawyers and legal firms with expertise in tax law, corporate law, and international law may advise superrich individuals on structuring their affairs to minimize tax liabilities. While most legal professionals adhere to ethical standards and legal requirements, some may facilitate tax evasion by designing and implementing illegal tax schemes.
– Financial Intermediaries:
Brokers, investment advisors, and other financial intermediaries involved in the buying and selling of financial assets may facilitate tax evasion by handling transactions related to offshore accounts, shell companies, and other offshore structures used to hide assets and income from taxation.
– Opaque Corporate Structures:
Multinational corporations, especially those with complex corporate structures and operations in multiple jurisdictions, may exploit gaps in tax laws and regulations to minimize their tax liabilities. By shifting profits to low-tax or tax haven jurisdictions and employing transfer pricing strategies, these corporations can reduce their overall tax burdens.
It’s important to note that while some individuals and entities knowingly facilitate tax evasion, others may inadvertently enable tax avoidance by providing legitimate financial services and advice. Efforts to combat tax evasion and aggressive tax planning involve regulatory measures, enhanced transparency requirements, and international cooperation among tax authorities and financial institutions.
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What is known about strategies that super-rich companies and corporation use to evade high taxation?
Companies and corporations employ various strategies to minimize their tax liabilities or avoid taxation altogether. While some of these strategies are legal and commonly used for tax planning purposes, others may involve aggressive tax avoidance or even illegal tax evasion.
1. Transfer Pricing:
Multinational corporations often engage in transfer pricing, which involves setting prices for goods, services, or intellectual property transferred between affiliated entities in different jurisdictions. By manipulating transfer prices, companies can shift profits from high-tax jurisdictions to low-tax or tax haven jurisdictions, thereby reducing their overall tax liabilities.
2. Tax Havens and Offshore Accounts:
Companies may establish subsidiaries, shell companies, or holding companies in offshore tax havens with favorable tax laws and regulations. These offshore entities can be used to park profits, hold assets, or conduct financial transactions in a tax-efficient manner, effectively reducing the company’s tax burden.
3. Profit Shifting:
Profit shifting involves reallocating income, expenses, and assets within a multinational corporate group to minimize tax liabilities. Companies may use intra-group transactions, licensing agreements, royalty payments, and other financial arrangements to shift profits to low-tax jurisdictions and expenses to high-tax jurisdictions.
4. Intellectual Property (IP) Holding Companies:
Many companies use IP holding companies located in low-tax or tax haven jurisdictions to manage and exploit intellectual property rights such as patents, trademarks, and copyrights. By licensing IP to subsidiaries or affiliates in higher-tax jurisdictions, companies can generate royalty income in low-tax jurisdictions and reduce their taxable profits elsewhere.
5. Debt Financing:
Companies may use debt financing to fund their operations, allowing them to deduct interest payments as business expenses and reduce taxable income. By leveraging debt, companies can effectively shift profits to creditors while minimizing their tax liabilities.
6. Corporate Inversions:
Corporate inversions involve relocating a company’s legal domicile to a jurisdiction with lower corporate tax rates through mergers, acquisitions, or reorganizations. By reincorporating in a foreign jurisdiction, companies can reduce their tax liabilities on global income and access foreign earnings without incurring repatriation taxes.
7. Tax Credits and Incentives:
Many governments offer tax credits, incentives, and exemptions to encourage investment, job creation, and economic development. Companies may take advantage of these tax breaks by structuring their operations to qualify for favorable tax treatment, thereby reducing their overall tax liabilities.
8. Complex Corporate Structures:
Companies may use complex corporate structures involving multiple subsidiaries, joint ventures, and special purpose entities to optimize their tax positions. These structures can be designed to exploit differences in tax laws and regulations across jurisdictions and minimize the company’s global tax burden.
While some of these tax avoidance strategies are legal and permissible under current tax laws, others may cross the line into aggressive tax planning or illegal tax evasion. Efforts to combat corporate tax evasion and avoidance involve regulatory measures, enhanced transparency requirements, and international cooperation among tax authorities and financial institutions.
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Can you find any initiatives and institutional attempts to implement high taxes for superrich individuals as well as corporations in an attempt to reduce this perverse wealth gap?
Yes, there are several initiatives and institutional attempts aimed at implementing higher taxes for superrich individuals and corporations in an effort to reduce wealth inequality.
Progressive Taxation:
Many countries have progressive tax systems that impose higher tax rates on individuals with higher incomes. Governments may introduce higher income tax brackets for the wealthiest individuals, thereby increasing the tax burden on the superrich.
Wealth Taxes:
Some countries have introduced or proposed wealth taxes that levy taxes on the net worth or assets of the wealthiest individuals. Wealth taxes are designed to address wealth inequality by targeting the assets of the superrich and generating revenue for social programs and public services.
Corporate Tax Reform:
Governments may implement corporate tax reforms to increase taxes on corporations, particularly multinational corporations with significant profits and global operations. Measures such as closing tax loopholes, imposing minimum corporate tax rates, and introducing digital services taxes aim to ensure that corporations pay their fair share of taxes.
Capital Gains Taxation:
Capital gains taxes, which are levied on profits earned from the sale of assets, can be increased to raise revenue from investment income and reduce the preferential treatment of capital gains compared to ordinary income. Higher capital gains tax rates for the wealthiest individuals can help address wealth inequality and generate additional tax revenue.
International Tax Cooperation:
Countries may collaborate through international tax agreements and initiatives to combat tax evasion, profit shifting, and tax avoidance by multinational corporations and wealthy individuals. Initiatives such as the OECD’s Base Erosion and Profit Shifting (BEPS) project aim to address tax avoidance strategies used by corporations to minimize their tax liabilities.
Closing Tax Loopholes:
Governments can close tax loopholes and implement measures to prevent tax evasion and aggressive tax planning by wealthy individuals and corporations. Strengthening tax enforcement, increasing transparency requirements, and enhancing reporting standards can help deter tax evasion and ensure compliance with tax laws.
Social Investment and Redistribution:
Revenue generated from higher taxes on the superrich can be used to fund social programs, public services, and infrastructure projects that benefit society as a whole. Investments in education, healthcare, affordable housing, and social safety nets can help reduce inequality and improve economic mobility.
Public Awareness and Advocacy:
Civil society organizations, advocacy groups, and grassroots movements play a crucial role in raising awareness about wealth inequality and advocating for tax policies that promote fairness and equity. Public pressure and mobilization can influence policymakers to implement measures to address the perverse wealth gap and promote economic justice.
These initiatives represent various approaches to addressing wealth inequality and reducing the concentration of wealth among the superrich. While there may be challenges and obstacles to implementing higher taxes for the wealthiest individuals and corporations, concerted efforts by governments, policymakers, and civil society can help create a more equitable and inclusive society.
All that above could make one really depressed or outraged about the perversity of the situation.
Millions living in poverty in our world while a few float around in their super-yachts.
But there is alo a silver lining, a possible answer to our prayers for some economic fairness.
Every now and then one of those rich folks is making significant philanthropic commitments. Even pledges to give away part of their wealth in their own lifetime.
I’d call that a promising sign!!!
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Can you find some examples about millionaires and super-rich people who pledge to give away part of their wealth in their lifetime?
Certainly! Many millionaires and billionaires around the world have pledged to give away a significant portion of their wealth during their lifetimes or upon their death. These philanthropic commitments aim to address various social, environmental, and humanitarian challenges and make a positive impact on society.
Here are some notable individuals who have made such pledges and the reality of their commitments:
1. Bill and Melinda Gates:
Co-founders of the Bill & Melinda Gates Foundation, Bill and Melinda Gates are among the most prominent philanthropists in the world. They have pledged to give away the majority of their wealth to support global health, education, and poverty alleviation efforts. The Gates Foundation has committed billions of dollars to initiatives such as eradicating polio, combating malaria, and improving access to education and healthcare in developing countries.
2. Warren Buffett:
The legendary investor and CEO of Berkshire Hathaway, Warren Buffett, has pledged to donate the majority of his wealth to philanthropic causes. He is a co-founder of the Giving Pledge, an initiative that encourages billionaires to commit to giving away at least half of their wealth during their lifetimes. Buffett has donated billions of dollars to various charitable organizations, including the Bill & Melinda Gates Foundation.
3. Mark Zuckerberg and Priscilla Chan:
Facebook co-founder Mark Zuckerberg and his wife, Priscilla Chan, have pledged to give away 99% of their Facebook shares to advance charitable causes through the Chan Zuckerberg Initiative. The initiative focuses on areas such as education, scientific research, and criminal justice reform, with a commitment to addressing systemic challenges and promoting social equity.
4. MacKenzie Scott:
Following her divorce from Amazon founder Jeff Bezos, MacKenzie Scott pledged to give away the majority of her wealth to charitable causes. Through her philanthropic efforts, Scott has already donated billions of dollars to organizations working in areas such as education, racial equity, healthcare, and economic opportunity. Her approach prioritizes unrestricted grants to nonprofit organizations, allowing them to use the funds where they are needed most.
5. Michael Bloomberg:
Former Mayor of New York City and founder of Bloomberg LP, Michael Bloomberg has pledged to give away the majority of his wealth to philanthropic causes. He is known for his support of initiatives such as public health, climate change mitigation, and gun control. Bloomberg has donated billions of dollars to organizations such as Bloomberg Philanthropies, which funds programs and projects aimed at improving lives around the world.
These individuals represent just a few examples of millionaires and billionaires who have made significant philanthropic commitments to give away their wealth during their lifetimes. While their pledges have the potential to make a substantial impact on society, the effectiveness of their philanthropy depends on factors such as the strategic allocation of funds, collaboration with other stakeholders, and accountability and transparency in their charitable activities.
May those super-rich folks lead the way and inspire others to follow!
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[p.s. * Now i must say a word about “Anna”. my hard working Research Assistant.
🙂 🙂 🙂 🙂 🙂 🙂 🙂 🙂 🙂 🙂
Thanks Anna for your excellent services. You are so cool 😎
😉
I am KIDDING, i admit!
“Anna” actually is a combination of the 4 main AI LLMs (Large Language Models) that sometimes i use to extract specific information from the endless ocean of information and knowledge that is the Cyberspace.
To make sure the extracted information is accurate and not a hallucination, i usually cross-check those 4 different LLMs:]
- Perplexity Search – You are pretty good in suggesting followup questions
- Anthrop\c Claude – You are my all-time favorite. I love how you list source material!
- Google Gemini – very good in multi-modal search. Text, images etc.
- OpenAI ChatGPT 3.5 – the older sister of them all. Very good all around but no up-to-date data.
- Nobody is perfect, right?
🙄
