NC State Ag Economist Dr. Mike Walden – “Tax Evasion”

 

Mary: This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at tax evasion.  Mike, as Congress considers changing the federal income tax code, one aspect of taxes that angers many is the ability of some companies and individuals to use legal means to evade paying taxes.  How does this happen and what is the solution?

Mike:  Summary Answer

  1. One of the more frequent ways this happens is by using legal means to move wealth out of the country and not exposing it to US taxes
  2. A recent study estimated about 4 of US wealth is hidden off-shore, resulting in $35 billion of annual lost tax revenue
  3. Concerning, but much less than the 60% of Middle Eastern wealth or the 50% of Russian wealth that is hidden this way
  4. Experts recommend a two part solution
  5. First, registration and tracking of all wealth worldwide
  6. Second, pressure to change the tax laws in certain foreign countries that would allow full taxation of the wealth
  7. I’m MW

Mary:  And I’m Mary Walden for the N C State Extension