“The Wealth Hoarders – How Billionaires Pay Millions to Hide Trillions,” by Chuck Collins, 2021
This is
written by a person who rejected his inheritance and instead works to limit the
dynastic wealth of the .1%. He calls it
‘The Money River.' Collins takes the
reader through the nuts and bolts of how the multi-millionaires and 2,153 billionaires
protect their money in perpetuity through certain trusts, shell companies,
family offices, tax havens and political power.
These same methods also work for embezzlers, money-launderers, crooks,
debtors, kleptocrats and divorcees.
Collins thinks if the
Collins
calls the army of tax and trust lawyers, accountants, advisors, charity and
real estate agents the “Wealth Defense Industry” (WDI). Much of what they do is legal. Which means
the capitalist state has enabled and protected these oligarchs and even
criminals world-wide. In fact the
1. “States’ Rights.”
2.
3.
4. The
5. The 2017 Trump tax
bill further raised the amount of money that can be passed to a future
generation without an estate tax to $11.4M for an individual and twice that for
a couple. “Only morons pay the estate
tax” is a famous saying among the WDI.
It also lowered the tax rate for the top 400 families to 23% - which
they don’t pay either.
6. Wealthy families (In the U.S. the Waltons
on down…) establish unregulated ‘family offices’ set up to limit taxes, hide
ownership, transfer as much money as possible to heirs and are becoming dark money
pools for investing. Between
7,000-10,000 now exist world-wide holding around $6 trillion in assets.
7. Collins tells the
stories of the founder of “Blue Hippo” who stole millions from customers and
then successfully hid his money in a trust in the
8.
9. Only a handful of
‘suspicious activity reports’ (SARS re money laundering or criminal activity)
provided to FINCEN are acted upon. In
the same way, the IRS spends their time auditing poor people over the earned
income credit instead of billionaires, due to lack of staff, funds and politics.
10. Billions are being
plowed into real estate in large cities like New York, San Francisco,
Vancouver, Los Angeles, London, Hong Kong and Miami as ‘wealth storage units’
for the multi-millionaires and billionaires of the world, pushing
gentrification to new heights, while leaving 30+% of this housing empty.
11. A key part of the WDI
and its associations is writing new laws to protect generational wealth. The American Bar Association, McKinsey,
Boston Consulting, the Chamber of Commerce and other groups back them up.
12. While the focus of
the book is not on corporations, Collins mentions they use ‘transfer pricing’
to move profits and royalties out of the U.S. by having their ‘foreign’
subsidiaries in low tax or no tax jurisdictions bill them for things like
patents or intellectual property.
13. The Panama Papers revealed that one clerk
at Mossack Fonseca in
14. There are actually
‘free trade zones’ (FTZ) in various countries, including the
15. There is $21
trillion dollars in ‘offshore’ bank accounts, along with the trillions more in
The
libertarian WDI says they are ‘helping families,’ or ‘someone else will do it
if we don’t’ or ‘protecting privacy’ or ‘obeying the law’ for their 'wealth creators.' All of these excuses are rotten. Collins has 7 sets of detailed suggestions
about what to do with dynastic and perpetual wealth and tax evasion (which the
WDI calls ‘tax avoidance.’) In the
process he mentions Bernie Sanders’ suggestion of shutting down a whole raft of
crooked trusts or Elizabeth Warren’s desire, following Piketty, to tax billionaire and
multi-millionaire wealth, not just income. You can read the book to see his list of
correcting policies.
The real
question is, at this point can the wealth of the world-wide ruling class be
reigned in by ‘good government’ methods?
Collins cites some examples of slow progress in law and enforcement. But the essence of the
system is class power, which shows up as political and legal power. Both parties in the
Nevertheless, Marxists would support some of Collins' moves. Expropriation is the more complete answer to the permanent accumulation of multi-millionaire and billionaire wealth. Collins never mentions that solution.
P.S. - Today Archegos, the family office of 'religious' financier Bill Hwang, "was forced to liquidate $20B in stocks," sending other bank shares sliding, with lossses at Credit Suisse and Nomura. This is due to margin debt calls by contra-parties on massive derivatives trades. Family offices look like another source of financial instability. (Bloomberg)
Prior blog
reviews on this subject, use blog search box, upper left: “Perfectly Legal”
(DC Johnson); “J is For Junk Economics” (
And I Bought it at May Day Books!
Red Frog
March 30,
2021