Wealth inequalities dictated by tax havens

by RomyLeclerc on March 30, 2016 - 9:07pm

Since we are little, we are aware that we are lucky to have the lifestyle we live daily. We also know that other kids in poorer countries cannot have this chance.

Indeed, on January 18th 2016, Oxfam published a report about inequalities and poverty worldwide. This report reveals that more than 25% of the money made in United Kingdom annually is in fact owned a thin percent of the British population.

The article “Oxfam says UK's top 1% took quarter of all new wealth over past 15 years” by Rob Davies published in The Guardian on 14 March 2016 explains that Britain has an uneven spread of wealth within his population. The organization wanted to point out also the fact that more and more people are using food banks to be able to feed themselves.

Oxfam wants to ring alarm bells for people concerning this growing phenomenon. According to Mark Goldring, the organization wants people to take action in order to “ensure everyone gets a fair share”.

In fact, according to them, in order to reduce this harrowing fact, we have to take care of the tax havens worldwide.
Indeed, the wealthiest people, not only from UK but from anywhere in the world, are placing enormous amounts of money away from their own country in something called tax haven. By doing so, they stop paying taxes. Therefore, because this movement is one of the principal reason why this unequal wealth divide exists, we have to plan an action against it.

According to the report, British government is losing more than 120 billion £ because of tax havens when the poorest regions of the country are missing out on 43 billion £. 

Oxfam is asking the chancellor George Osborne to take advantage of this year governmental budget to require big companies to publish their data on profits and taxes contributions.

 

Here’s the link of the article on The Guardian:

http://www.theguardian.com/business/2016/mar/14/oxfam-uk-1-percent-quarter-new-wealth-15-years

Here’s a link to Oxfam’s report: https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/bp210-economy-one-percent-tax-havens-180116-en_0.pdf

 

Comments

Hello Romy,
I am quite shocked to see how much people benificiated from tax falsifications. I really liked how you incorporated these statistics, which really makes me worry about the wealth gap.

I do however think that Oxfam's goal, that is, to “ensure [that] everyone gets a fair share," like you said, may be a bit dishonest. I believe that perhaps your article could have been more insightful if you had considered gender issues. Surely, there must also be a gap that is not only economic, but also social, between the women and the men who are part of this elite. There is this concept known as the glass-ceiling which describes how people, regardless of their differences, all start at the same position, but as they climb up the social ladder, visible minorities, like women, are given less credit, and opportunities to rise to the top when compared to men. For example, the rare women who are part of these happy fews must have compensated with their seniority when compared with less experienced men who still, nonetheless, have the same income as they do.

I also linked an external source if you wish to know more about the glass ceiling.
Thank you for your attention.
https://en.m.wikipedia.org/wiki/Glass_ceiling

This was a very interesting read and it's good that you are bringing awareness to the problem of tax havens. Although there is an increasing gap in wages between the rich and the poor, it would have been interesting for you to discuss the income disparity of all classes between men and women. For instance, women in the work force are subject to the "mommy track", which is a source of income inequality woman must face if they chose to have a family. Women can have their career be at risk even with the help of maternity leaves as they are given less opportunities in their work once they return. By looking at this issue we can get better insight on the sources of income disparity which does not ignore inequality faced by women. If you want to learn more about this concept, wikipedia gives a good summary of this issue and just how much of an impact it has.

https://en.wikipedia.org/wiki/Mommy_track