Financial Transparency Coalition

In late 1975 a Securities and Exchange Commission investigation into Lockheed Corporation revealed that the aircraft manufacturer had paid at least $22 million in bribes to foreign government officials and political organizations. At the time, this was not illegal and it resulted in a scandal, investigation, and a revelation that hundreds of other businesses were routinely involved in this practice. In response to the Lockheed scandal, Congress enacted the Foreign Corrupt Practice Act (FCPA) in an effort to “bring a halt to the bribery of foreign officials and to restore public confidence in the integrity of the American business...

According to Global Financial Integrity, in 2009, importers and exporters sent $569 billion out of developing countries through trade mispricing. Trade mispricing, in case you’re not already aware, is a process by which individuals can transfer money abroad without detection. By over-invoicing imports and under-invoicing exports, individuals can evade taxes and avert capital controls through routine trade. Here’s how it works: Suppose a Mexican furniture manufacturer, who wants to send money abroad illegally, imports $100 worth of timber from the United States. Instead of paying $100, the furniture company reports and pays $200. The company’s U.S. trading partner...

We heard a lot about taxes in the first presidential debate last night. In fact, it largely dominated the first forty-five minutes in what amounted to a ridiculously-long-back-and-forth-that-silent-Jim-Lehrer-couldn’t-seem-to-interrupt. But that’s not a bad thing. It’s an important issue. It’s a defining issue. And it’s one that says a lot about the candidates, their values...and their grip on reality. Before we talk about the debate, though, let's start with some politics and some economics. Last week, when former California Governor Arnold Schwarzenegger went on the Daily Show, Jon Stewart pointed out that his state is an interesting example of the effect...

Redistribution is a dirty word. It’s become something of a catch phrase for the Tea Party and Libertarians. In 2008 the McCain campaign sought to unfavorably label Obama a “redistributor” in speeches and attack ads. But perhaps this is not a recent development. Libertarians point out that many of our early presidents were also suspicious of redistributionist policies. President Grover Cleveland, for example, vetoed a bill in 1887 that would have given $10,000 in aid to Texas farmers struggling with a drought. He rationalized that he did not believe it is the duty of the government to relieve “individual...