Thursday, February 24, 2011

Stigltz: tax havens serve no socially useful function

From India Today:
Q. It is estimated that $500 billion of Indian taxpayers' money is stashed in tax havens abroad. Is it desirable and feasible to bring this money back?

Joseph Stiglitz: In the case of India the problem is very severe. The G-20 has recognised that these tax havens are really bad for the global economy. Advanced industrial countries were focusing on the adverse effects tax havens have on their tax collection, but for emerging markets like India the problems are even worse. Because, typically, they need money for tax revenues even more and the tax havens are also often corruption havens, money that is touched in a way or another by illegality. It seems to me that there should be concerted pressure to close them down. They serve no socially useful function. They exist only to circumvent norms. They undermine good governance.
Not sure of the date on this interview, but it seems to be current.


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