Bring Wealth Home: How Social Offsetting Can Rebalance Our Rigged Economy

By Tom Burgess, CEO Taxpayers Against Poverty and author of From Here to Prosperity (this article was originally published in 2018 in inequality.org, it seems little has changed, and how the proposal is still very relevant) 18 August 2025

Bermuda is beautiful — and broken. Its pink-sand beaches and mild climate make it a dream home for some. But beneath the postcard surface lies a global problem: over 18,000 companies are registered in Bermuda, many funnelling profits from other countries to exploit secrecy and low tax rates. This isn’t smart capitalism — it’s legalised theft.

According to leading economist Gabriel Zucman, nearly 40% of multinational corporate profits are now parked in tax havens like Bermuda. That’s trillions withheld from public services, infrastructure, and communities — all to inflate the wealth of shareholders and top executives.

In the USA, the 2017 Tax Cuts and Jobs Act supercharged this injustice. Instead of using tax breaks to create jobs or raise wages, CEOs used the windfall to buy back shares — boosting their own compensation while workers struggled with flat wages and rising living costs.

This is not an accident.It’s the result of an outdated, shareholder-first economic model that no longer serves the common good. And it’s time we fixed it — not with more punishment, but with better incentives.

The Solution: Social Offsetting

Social offsetting is a new approach to corporate tax policy. Instead of punishing bad behaviour, it rewards good behaviour with meaningful tax breaks.

Here’s what it looks like:

✅ Companies pay all workers a real living wage✅ Executive pay is capped at 20x the lowest-paid employee✅ Profits are shared with workers✅ No political donations✅ Flexible working hours and strong training programs✅ Investment in renewable energy✅ No use of offshore tax havens

Firms that meet these standards would qualify for reduced corporate tax rates — aligning financial incentives with social responsibility.

Why It Matters

• It’s fair: Corporate income tax is paid only on profits — not revenue or payroll. It doesn’t hurt business; it rewards responsibility.

• It attracts talent: Companies seen as good employers will win the race for top talent.

• It restores trust: People are tired of rigged rules. This is how we level the playing field.

• It brings wealth home: Instead of hiding profits offshore, firms will reinvest in the communities where their wealth was truly created.

A Badge of Honour

Under a social offsetting model, a company’s tax return becomes more than a filing — it’s a statement of values. Good employers will wear it as a badge of honour.Bad actors will stand exposed.

If we want an economy that works for everyone — not just the top 1% — we must redesign the rules to reflect our values. Social offsetting does just that.

Let’s make taxes a tool for justice.Let’s reward companies that put people and planet before profit. Let’s bring the wealth home.

Tom Burgess is the author of From Here to Prosperity: A New Political Agenda for a Sustainable Economy and Greater Social Justice, and former CEO of a global public relations firm operating in 100 countries. Currently he is CEO of Taxpayers against Poverty and a director of Compassion in Politics