Here are two related statistics, both of which may surprise you: 1) More than 1.2 billion people around the world live in extreme poverty, and 2) Every year, poor countries lose more money to tax avoidance than they receive in aid.
Here is something that should shock a citizen of the United States just as much: Current U.S. law enables this economic inequality.
I recently returned from Washington, D.C., where I joined the interfaith, bi-partisan anti-poverty group Jubilee USA and other faith leaders and small-business owners from across the country to encourage our elected officials to reform the tax system and protect the most vulnerable among us. Perhaps what surprised me most was that even legislative allies in the efforts to repair the fabric of our nation’s economic inequality feel immobilized by the enormity of the task. To the paralysis, often experienced when confronted with big problems, I offer this faith response, culled from centuries of Jewish tradition: Ours is not to complete the task, but neither are we exempt from starting the work today.
I expressed to our elected representatives that whatever they think about taxes, we should have a tax system in which everybody pays their fair share. To me, this is one of those issues where Republicans and Democrats can – and must – agree. It makes no sense to have legal loopholes that allow big companies to avoid their share of taxes and then pass the burden on through reduced services and increased taxation for the rest of us.
In the United States, tax haven loopholes cost an estimated $90 billion in lost revenue each year. This is an enormous problem with enormous consequences, experienced in every strata of our nation. In the developing world, the problem is even bigger. During my trip to Washington, for instance, I learned that for every $10 poor countries receive in aid, they lose $15 because of large companies not paying their taxes. We heard the story of a woman in Zambia, who works 15 hours a day for $4, but who regularly pays a higher percentage in taxes than the enormous European-owned sugar company operating in her town. That company uses a web of “shell companies” and tax havens to avoid paying taxes. That means reduced funding for health services for the people of Zambia. These travesties, what my faith would call sin, is that all of this is legal. An even greater sin would be our silence as citizens.