Essay On Poverty In Zambia

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The Organization for Economic Cooperation and Development estimated that developing countries loses more money to tax havens than they receive in foreign aid yearly, according to the Guardian(2013). Tax havens can cause a worldwide phenomenon that can bring about poverty to nations. Hence, supporting the statement " Tax havens create more poverty around the world." Tax havens are countries where businesses have little or no tax liability in a politically and economically stable environment and take advantage of low tax regimes to avoid paying hefty taxes in their own countries. Over the years, Zambia have been experiencing economic and mental poverty, where they lack basic needs and education, due to tax havens. The Guardian(2013) stated that tax haven companies have legally avoided enough Zambian tax to put 48,000 children in schools. However, educational poverty in rich countries is not as unfavorable as in poorer states. The Guardian(2015) indicated that in the US, most students attending public schools live in poverty due to low-income families. Therefore, citizens are withheld from pursuing an education in Zambia due to lack of revenue, as oppose to the US, and will result in unemployment as mentioned by the National Bureau(2015) that poor countries with unskilled labor do not gain from trade reform. Hence, the state is allowing the…show more content…
Similarly, the US was also deprived as corporations are stockpiling monies overseas because of the corporate taxes stated by Center for American Progress(2014). In both cases, profits are kept in other countries causing the tax revenue to depreciate and hinders the globalisation process. Therefore, both India and US have encouraged their MNCs to bring back their monies into the economy by reducing the tax

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