Most individuals with millions (or billions) of dollars on hand don’t just walk up to their local bank and open up a checking account, or even entrust the sum into the hands of just any financial advisor. If you’re among the world’s mega-rich, then it’s possible you’re squirreling it away in a secure, untouchable offshore bank or investment account, where governments and other entities can’t get to it. According to a startling report by James Henry titled The Price of Offshore Revisited, the amount of money put in tax havens by an elite group of super-rich people around the world could total $21 trillion.
That amount is more than the total output of the U.S. and Japanese economies combined.
Sony Kapoor of the international think tank Re-Define uses our nation’s transportation network as an analogy to explain why unregulated financial systems are dangerous, which includes the use of tax havens among the super-rich.