Tax evasion by the rich more prevalent than ever study finds The fight for soci

Marxist Analysis · 2026-05-13

Core Argument¶

The article argues that the scale of tax evasion by the super-rich — revealed by studies of the Panama Papers and Swiss Leaks — is not merely a policy failure or a matter of inadequate enforcement, but a structural feature of capitalism. The central thesis is that the capitalist class will inevitably use every means available, including illegal tax evasion, to maximise profits and defend its privileges. Because the state is itself an instrument of capitalist rule, reformist solutions — such as amnesty programmes or stronger tax enforcement — cannot resolve the contradiction. Only a revolutionary socialist transformation, abolishing capitalist property relations, can end the systematic looting of society by a tiny parasitic minority.

Theoretical Grounding¶

The analysis draws on the Marxist theory of the state, rejecting the liberal conception of the state as a neutral arbiter standing above class interests. Instead, the article insists that the state is "tied by a million threads to the capitalist class" — a formulation that echoes Engels' characterisation of the state as a committee for managing the common affairs of the bourgeoisie. The argument also implicitly rests on Marx's law of the tendency of the rate of profit to fall: the intensifying drive to hide wealth offshore is presented as one expression of capitalism's compulsion to overcome barriers to accumulation by any means, including the systematic violation of its own legal forms. The piece situates itself within the revolutionary Marxist tradition that rejects the possibility of a "fair" or "regulated" capitalism, counterposing reformist illusions — including those held by Scandinavian social democracy — against the necessity of socialist revolution.

Conjunctural Relevance¶

The article was published in June 2017, shortly after the Panama Papers (2016) and Swiss Leaks (2015) revelations had entered public consciousness. It cites a specific academic study by Scandinavian economists correlating leaked data with tax records from Norway, Sweden, and Denmark, finding that the top 0.01% evade close to 60% of taxes owed on wealth and capital income. The article also references the 2017 Oxfam report showing that eight individuals owned as much as the poorest 50% of humanity, and argues that even this staggering figure is likely an underestimate due to hidden wealth. Politically, the piece is situated in the aftermath of the 2008 financial crisis and the subsequent austerity regimes across Europe, which saw working-class living standards attacked while the rich continued to accumulate. The specific example of former Icelandic Prime Minister Sigmundur Davíð Gunnlaugsson — who campaigned on transparency while his family held undisclosed millions in the very banks that collapsed — illustrates the hypocrisy at the heart of the capitalist state.

Where the Argument Continues¶

The article is a relatively short intervention and leaves several questions underdeveloped. It does not explore in detail how a workers' state would actually recover hidden wealth or reorganise the financial system — this is gestured at but not elaborated. The argument about the state as a class instrument could be deepened by reference to the Marxist theory of the state's relative autonomy and the limits this imposes on reform. Readers seeking further development should consult the broader In Defence of Marxism corpus on the state, particularly articles on the nature of bourgeois democracy and the impossibility of "taming" capital within capitalism. The journal's ongoing coverage of tax justice, inequality, and the Panama Papers provides the empirical follow-through, while theoretical elaboration can be found in Marxist classics such as Engels' The Origin of the Family, Private Property and the State and Lenin's The State and Revolution.

Connections¶

Engels, The Origin of the Family, Private Property and the State — the theoretical foundation for the article's conception of the state as a class instrument.
Lenin, The State and Revolution — the necessary companion text for understanding why the bourgeois state cannot be used to abolish capitalist exploitation.
Marx, Capital Volume 3 — the law of the tendency of the rate of profit to fall provides the underlying economic logic for capital's increasingly desperate and lawless behaviour.
In Defence of Marxism articles on the 2008 crisis and austerity — these provide the broader conjunctural analysis within which tax evasion is one symptom of a system in decay.
Against the Stream episodes on inequality and the state — the RCI's podcast series regularly returns to these themes with updated empirical material.

Key Quotes¶

"The laws of capitalism dictate that in whichever way possible, the capitalists will attempt to increase their profits at the expense of the working class, be it by extending the working day for the workers, increasing the tempo of work or by hiding profits created through the exploitation of the working class in foreign bank accounts."
"The mistake here is to see the state and the capitalist class as two opposing forces, portraying one as a money hungry bandit and the other as a neutral entity fighting for justice and equality. From a Marxist perspective the state is a tool for the rule of one class over others."
"If the hidden wealth of the rich is severely underestimated (or even entirely ignored) when calculating wealth inequality, the result of the calculations relating to inequality will be an underestimate as well. Inequality may therefore be growing far faster than previously believed to be the case."
"As long as the capitalist class holds economic and state power in its hands, no reforms will reduce inequality and poverty. What is needed, is a revolutionary socialist transformation of society taking the immense wealth out of the hands of the 1% and placing it under a rational and democratic plan of production."
"This is yet another example of the hypocrisy of the capitalist class and its state, which viciously attacks and sanctions any poor or working class person who might break the law to get a bit of economic relief, while they themselves are involved in the most blatant tax evasion and economic fraud."