Revolutionary socialists warned about this for years. How the rich and the capitalists of the world, evade taxes by playing on capitalist laws to hide their fortunes. Because our laws are created by those who serve capitalism, they benefit those with a lot of money. Not only the owners of our economy hide their money; politicians, celebraties and even a none-profit group have used foreign banks to evade taxes. Revolutionary Socialist Media is not surprised by the leaks called the Panama Papers. The capitalist system works in favor of the 1%
Over 214,000 offshore companies are listen in these so called Panama Papers. The papers identified five then-heads of state or government leaders from Argentina, Iceland, Saudi Arabia, Ukraine and the United Arab Emirates. Also named are the corrupt state-capitalist leaders of the Chinese ”Communist” Party, who rejected the accusation and then censored the Chinese internet in order to hide their involvement!
Named in the leaks are close relatives of Xi Jinping, but also former members of the politburo and their children. It is typical that sons and daughters of party bosses enjoy a privileged live-style and are part of the new Chinese bourgeoisie. The media in the People’s Republic of China was told to censor all information about the Panama leaks, in order to shield the ruling party bosses and their corrupt sons & daughters, who enrich themselves at the expense of the working class!
Named also are close friends of ”czar” Vladimir Putin. Although the big boss himself is not named, his ex-KGB friends and oligarch members are. Speaking of oligarchs, Ukrainian chocolade capitalist; Petro Poroshenko is also mentioned in the Panama Papers. This comes to no surprise either since he is a oligarch and very wealthy. To evade Ukrainian taxes he moved his holding company; Prime Asset Partners Ltd, to the British Virgin Islands. The anticommunist leader promised to be a fair and just leader, but revolutionary socialists rejected him as a corrupt capitalist dictator. Now the Panama leaks have proven what we knew all the time. Poroshenko is lying to evade taxes!
Ilham Aliyev, the authoritarian president of Azerbaijan, is living a luxurious lifestyle. His father founded the ruling dynasty and put his son in power just before he died in 2003. Aliyev’s family is named in the Panama Papers, especially his wife Mehriban Aliyeva and daughters Leyla & Arzu. The president, his wife and daughters are the ruling caste of the Republic of Azerbaijan and control vital economic sectors. The kids of Ilham Aliyev own at least 75 million dollars in offshore companies and luxurious property, thanks to daddy’s nepotism which is illegal under Azerbaijani law. However do to political corruption and the authoritarian government, opposition and criticism of the Aliyev family leads to arrests and jail for political opponents!
One head of state has left office after he was named. Sigmundur Davíð Gunnlaugsson, was the prime minister of Iceland. He belongs to the Progressive Party, a center-right party that promotes neoliberalism. Sigmundur Davíð rejected any claim that he was using Panama to evade Icelandic taxes. But the Panama leaks showed that his wife had bought a Panamanian company registered in the British Virgin Islands. Sigmundur Davíð owned 50% of that enterprise, which he did not shared with the public. In 2010 he sold his shares to his wife for one dollar. Six years after this event, anti-government protests forced the prime minister out of office!
Mossack Fonseca is the law firm and corporate service provider, that is named in the Panama Papers as the company, who’s clients used to hide billions of dollars. Over two terabyte of documents were leaked, showing how Mossack Fonseca used the tax heaven of Panama to hide the money from its clients. Over 200.000 companies owned by people like the Aliyev family, Petro Poroshenko, the Putin circle and families of Chinese leaders!
The capitalist system allows for this kind of tax evading. While 2.000 children die each day from cure-able sickness, a few capitalists try to hide their money in tax heavens such as Panama. This is a problem that cannot be solved under capitalism. The system itself must be destroyed and replaced by a socialist economic system, that ends the private ownership of enterprises. Revolutionary socialists call on the working class of the world, to remove their capitalist leaders from power, both political and economic power!
Neoliberal economic commentators suggest that taxes should be cut to entice more wealth into the country and encourage businesses activity. But the so called ‘trickle down’ approach has only ever achieved the opposite, as is clearly the case today. What is needed is a genuine, full, socialist program. This means breaking the power of the capitalists – by nationalizing not only the banks, financial institutions, plus companies threatening job losses and so on – but all the big corporations which control the majority of economic activity. A publicly owned economy, under the democratic control and management of workers, could actually start to plan production in the interests of the 99%.
- Take the wealth off the super-rich
- Reverse the cuts to HM Revenue and Customs. Close tax loopholes and enforce collection of avoided taxes. Increase taxes on the super-rich and big business
- Nationalize the banks and the major corporations under democratic workers’ control and management – with compensation only on the basis of proven need
- Through public ownership of the commanding heights of the economy, democratic socialist planning of industry and services can be introduced to meet the needs of the majority. You can’t control what you don’t own: only socialist nationalization can end the great tax robbery!