Taxing across Borders: Tracking Personal Wealth and Corporate Profits

This article attempts to estimate the magnitude of corporate tax avoidance and personal tax evasion through offshore tax havens. US corporations book 20 percent of their profits in tax havens, a tenfold increase since the 1980; their effective tax rate has declined from 30 to 20 percent over the last 15 years, and about two-thirds of this decline can be attributed to increased international tax avoidance. Globally, 8 percent of the world's personal financial wealth is held offshore, costing more than $200 billion to governments every year. Despite ambitious policy initiatives, profit shifting to tax havens and offshore wealth are rising.

Taxing Across Borders: Tracking Personal Wealth and Corporate Profits, Journal of Economic Perspectives, 2014, 28(4): 121-148. [Appendix]. [Data].