Tax Evasion 101

In the world of journalism, reporters want scoops. It doesn’t matter whether political, sports or entertainment; beating the competition is paramount, and the bigger the story, the more satisfying the feeling among staff and management.

This week, possibly the most amazing scoop in journalism history took place, and it defied all the standards, because of its sheer size. And it may take months, maybe even years, to fully appreciate and understand the ramifications and fallout that will take place on a global scale.

Oh, the Panama Papers offshore tax evasion network started as a traditional scoop, by Suddeutsche Zeitung, a large Germany daily newspaper, more than a year ago after reporters in Munich were contacted by someone connected with a Panama law firm which creates anonymous offshore companies across the world. But because of the magnitude of documents - some 11.5 million, at least - the Washington, D.C.-based International Consortium of Investigative Journalists was brought into the fold. Roughly 400 journalists from more than 100 media organizations in more than 60 nations were involved in an investigation that covers roughly 40 years of deceit by some of the most powerful people in the world.

And yet, one of the most surprising things about the entire fiasco is the lack of surprise we have in what has been discovered. Yes, the sheer volume of data and individuals involved is pretty amazing. We’re kind of jealous we weren’t invited to the party. But is anyone actually shocked that the wealthiest individuals in the world have been afforded (for a price) the opportunity to hide their earnings in order to not pay taxes on said financial gains?

For years, there has been a growing disconnect between the “haves” and the “have not quite as much” and the “we have almost nothing” in the United States and across the world. This isn’t just about individuals, either; corporations have benefitted from extremely favorable tax laws to either pay a much lower percentage of taxes, or even get refunds despite millions or billions of annual earnings. Meanwhile, Joe Citizen ends up paying a comparatively larger percentage of his salary in taxes.

Much of the political discord taking place in the 2016 presidential campaign is tied to this. The reason so many people are angry with government - and leaders in both major political parties - is due in large measure to the financial frustration individuals have faced the past decade (starting with the 2008 financial meltdown). Whether hesitation is worthy of such anger is up to debate, but the world of “perception is reality” has resulted in thousands of individuals voicing their displeasure with the political status quo in a way not seen for years.

Regardless of who is elected to take over the reins from President Barack Obama in November, this is a situation that those in Washington - whether the political elite or those in the role of political revolution - need to take seriously. There must be some measure of tax law fairness that gives the 99 percent a belief that government truly is of, by, and for the people.