According to the Pandora Papers, bureaucrats around the world continue to ask ordinary citizens to enter into their every financial decision, with politicians and celebrities around the world hiding huge amounts of wealth in tax havens. Although American politicians, such as the Biden administration, claim to be against tax corruption, some see the United States as the world’s “major tax haven.”
Pandora Papers exposes hypocrisy among bureaucrats worldwide, U.S. public officials manage to escape investigation
Last month, the Biden administration and other U.S. politicians discussed proposed legislation aimed at tackling tax evasion by the so-called billionaire class and corporate entity. One proposal aims to give the U.S. Internal Revenue Service (IRS) access to bank account information regardless of tax liability. Once enacted, financial institutions across the country are required to report transactions of at least $ 600 or more. Another proposal is aimed at introducing “unrealistic capital gains” otherwise known as “anti-defaral accounting”.
Meanwhile, the latest publication of Pandora Papers has been published this past week and the documents have hidden the wealth of a large number of politicians around the world to stay tax-free. The International Consortium of Investigative Journalists (ICIJ) has published the magazines and demanded that they publish “the internal workings of the shadow economy” for “well-connected”. The documents include 2 million documents from 14 different service providers, revealing 330 politicians and government officials from different countries.
Pandora Papers is twice the size of an offshore account and the number of government officials named in the Panama Papers. He also received links to offshore assets from celebrities such as professional cricketer Sachin Tendulkar, model Claudia Schiffer and world-famous singer Shakira. Interestingly, prominent American bureaucrats have been able to stay away from the results of the investigation despite the record amount of economic expansion in the last two years.
One reporter asked: ‘Why is there no big American name in the Pandora paper?’ Russia’s press secretary says ‘United States is the main tax lagoon for the whole world’
Several media outlets, such as the NPR and the Washington Post, have cited tax evasion by American bureaucrats and the country’s contribution to the Pandora Papers. The Washington Post (WP) quickly said that Americans use the same method of tax evasion but the WP report did not name any government officials. A horrific report by The Independent does not mention any American politicians, but the author decides to look into why high-profile U.S. citizens were not added to the Pandora Papers list. The country did not, although prominent Americans were able to escape being targeted in the ICIJ investigation.
The researchers noted that the United States is well-known as a tax haven and that people from abroad have been hiding funds in certain areas of the United States. Furthermore, studies have shown that Americans hide money in other countries, such as Central America, but no specific names have been included in the study. “The records also show how a firm in Central America became a one-stop-shop for American clients, allowing them to hide their assets when facing criminal investigations or lawsuits,” WP author Pandora Papers wrote of the evidence.
The Independent highlights that state governments from Nevada and South Dakota have become tax havens for foreign nationals. The NPR said both states had “adopted financial secrecy laws that rival offshore jurisdiction.” Although the Western media failed to implicate any prominent American bureaucrats, Russia’s foreign ministry scoffed at the results of the Pandora paper. Dmitry Peskov, the press secretary to Russian President Vladimir Putin, said the documents made US politicians hypocritical.
“What stands out is which country is the largest lagoon in the world. This is definitely the United States, “Peskov told the media last week. “It has nothing to do with their declaration of the fight against corruption … We see that the United States is a major tax region for the whole world,” the Russian president’s press secretary said.
Meanwhile, U.S. politicians are trying to reform taxes that have been accused of targeting corporate entities and the so-called billionaire class. However, the proposed guidelines outlined in the “American Family Plan Tax Compliance Agenda” do not appear to be aimed at wealthy Americans. Civil rights groups and privacy advocates are concerned about the notion of “unrealistic capital gains” which means citizens have to pay for capital gains before they can sell their assets.
Additionally, IRS Commissioner Charles Ratig and Treasury Secretary Janet Yellen want banks to report deposits and withdrawals linked to the average American’s bank account. The combination of ideas like the Pandora papers and the proposed tax compliance program show that the political class of so-called government employees in the United States was hypocritical and clearly benefited at the expense of everyone else.
It shows that while politicians around the world are accusing the average citizen of tax evasion, bureaucrats are breaking their own rules or using legal loopholes created to protect their own assets.
What do you think of the Pandora Papers and why do you think the Americans were able to stay out of this investigation? Let us know what you think about this in the comments section below.
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