Thread by @IPS_DC

💰 NEW: The shadow system of trust companies in the U.S. is growing rapidly, inviting tax avoidance and illicit wealth hiding by elites around the world.

New analysis from @Chuck99to1 & @kalenasthom @inequalityorg exposes the states enabling these harms: ips-dc.org/billionaire-en…

As the @ICIJorg #PandoraPapers investigation revealed, some U.S. states have allowed international kleptocrats to avoid accountability at home and hide their ill-gotten wealth abroad.

These states also enable wealthy Americans to avoid federal taxation.

Three key ingredients — low or no taxes, secrecy, and trust longevity — make certain U.S. states particularly attractive to wealth defenders.

These states pass laws to cut or abolish taxes or hide trust records from prying eyes.

There is a significant correlation between regressive state taxation systems, which hurt the poorest residents, and trust-subservient state laws.

Of the 13 states captured by the trust industry we have profiled here, 8 are among the 15 most regressive tax states in the country.

The trust industry says it simply helps its clients obey laws — but it often writes the laws.

Trust and estate lawyers regularly lobby state legislatures and sometimes work in official capacities with states to write legislation favorable to the industry.

At the end of the day, the trust industry offers little benefit to states.

Though billions may be held in trust in a state, state coffers — and the public — will never see it.

States are engaged in a rapid race to the bottom, so federal action is needed.

Here are our policy recommendations, out today: ips-dc.org/billionaire-en…