Economic Quote by David Cay Johnston
“In 1990, about 1 percent of American corporate profits were taken in tax havens like the Cayman Islands. By 2002, it was up to 17 percent, and it'll be up to 20-25 percent very quickly. It's a major problem. Fundamentally, we have a tax system designed for a national, industrial, wage economy, which is what we had in the early 1900s. We now live in a global, asset-based, services world. And we need to have a tax system that follows the economic order or it's going to interfere with economic growth, it's going to reduce people's incomes, and it's going to damage the US.”
About This Quote
Source Speech: Public Commentary on Tax Policy, 2023
The US tax code is outdated for a global, asset‑based economy, allowing profits to shift to havens and harming growth and incomes.
In simple terms: Tax rules don’t match modern economy, causing profit shifting and damage.
Key Takeaway
Update tax system to reflect global asset economy.
Themes
tax policy
economic growth
globalization
inequality
public finance
Mood
concerned
critical
urgent
Type
analytical
policy
commentary
When to use this quote
- policy reform
- corporate financial planning
- government budgeting
- international trade negotiations
Key Concepts
corporate taxation
tax havens
economic structure
fiscal sustainability
Questions to Reflect On
- How can tax reform balance competitiveness with fairness?
- What incentives can discourage profit shifting?
A Different Perspective
Implementation may face political resistance and lobbying from powerful interests.
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