News Archives » Economic Justice
IMF Paper: Corporate Tax Avoidance Hurts Global Economy and Poor Countries June 25th, 2014
The International Monetary Fund (IMF) released a staff paper noting that corporate tax avoidance negatively impacts all economies, but hurts developing countries the most. The IMF’s release comes as the G20, the Organization for Economic Cooperation and Development and United Nations bodies seek vehicles to diminish corporate tax avoidance.
“The developing world loses more in corporate tax avoidance than it receives in aid from developed countries,” stated Eric LeCompte, Executive Director of the religious anti-poverty group, Jubilee USA Network. “The paper shows that when multinational corporations shift their profits to another country to pay less taxes, we see higher levels of global inequality.”
The IMF paper is entitled “Spillovers in International Corporate Taxation.” “Spillovers” are the impact of one country’s policies on another country. By shifting profits to countries with low tax-rates (often so-called “tax havens”), corporations avoid paying their taxes in the countries where they make those profits. The paper notes that this is a particularly large problem in developing countries, which need corporate taxation to fund social services. The paper argues that “many developing countries…need to be better protected against the avoidance of tax on capital gains on natural resources.”
“These ‘spillovers’ are more like a flood,” noted LeCompte. “For every $1 poor countries are receiving in official aid, nearly $10 is leaving through corruption and tax avoidance.”
Thanks to Jubilee USA for this information.
2014 Trafficking in Persons Report issued by the US State Department June 23rd, 2014
We want to alert you to the 2014 Trafficking in Persons Report, released by the U.S. Department of State on June 20, 2014. The Report presents an assessment of what countries are doing to combat the scourge of trafficking in persons (TIP). This annual report, mandated by the U.S. Congress, is a valuable source of information for all people working to prevent TIP, as well as those involved in protection and education initiatives. Examining the state of human trafficking both in the United States and abroad, the report reflects the deep concern of the President, members of Congress, and the public over the serious human rights, health, and security implications of human trafficking around the world.
The introduction to the Report and the individual country narratives can be downloaded in PDF and HTML format here…
Big banks must clean up their mess June 17th, 2014
“Hannah Senft, Candy Savannah and Ron Taylor have been neighbors for more than 20 years in Georgetown South, a community of 800 town homes in Manassas, Virginia. It’s a diverse, working-class suburban neighborhood about 30 miles from the White House.”
“And it’s being decimated.”
Thus begins a powerful Op Ed calling for requiring banks to rebuild communities they destroyed through predatory loans and resulting foreclosures published today in the The Hill, a daily newspaper/On-Line news site read extensively by Congress, their staff, and other Federal officials. The Oblate JPIC Office has been working with VOICE to try to get JP Morgan to agree to participate in the rebuilding of the devastated Northern Virginia communities.
The Op Ed details the suffering still experienced by communities hit by numerous foreclosures, but says: “… there is a sliver of hope: In November 2013, the U.S. Department of Justice (DOJ) secured a $13 billion settlement from J.P. Morgan Chase over its issuance of toxic mortgage-backed securities, including $4 billion for consumer relief. VOICE worked with Sen. Mark Warner (D-Va.), federal officials and other allies to include an option in the settlement for the bank to fulfill this obligation through grants to capitalize community equity restoration funds.”
Click here to read more »
“Investing for the Poor: How Impact Investing Can Serve the Common Good in the Light of Evangelii Gaudium” June 16th, 2014
The Vatican is convening a two-day conference on of impact investing – investments that directly benefit the poor. Fr. Seamus Finn, OMI is one of the conference speakers.
Read the Impact Investment Conference Program
See who is speaking at the conference…
Supreme Court Refuses Argentina Hedge Fund Debt Case June 16th, 2014
Lower Court Ruling Stands and Validates Hedge Fund Predatory Behavior
Washington DC – The US Supreme Court denied hearing Argentina’s appeal today and a lower court ruling stands that validates predatory behavior targeted towards countries in financial distress. The high court also denied a related appeal on behalf of the more than 92% of bond holders who had accepted Argentina’s restructuring deal after the default.
Eric LeCompte, Executive Director of the religious anti-poverty organization Jubilee USA, releases the following statement:
“I am blown away by the decision. For heavily indebted countries trying to support extremely poor people, this is a devastating blow. These hedge funds are equipped with an instrument that forces struggling economies into submission.
“For 15 years, Republicans and Democrats have agreed that the world’s poorest countries need to have their debt burdens reduced. Today, that bipartisan policy is threatened by the court’s decision.
“The religious community is saddened that these extreme actors will now broaden their efforts to collect assets that belong to the poor.
“One loser today is New York State. Given today’s ruling, countries wishing to borrow money are going to find other places to sign their contracts. That’s why legitimate Wall Street investors have joined the IMF, World Bank, United Nations and the United States Government in opposing this behavior.
“Given the ruling, we need to see what legislative remedies we can implement to stop these hedge funds.”
Read a history and timeline of the case.
Read Jubilee’s USA’s filing urging the Supreme Court to take case.
