European Tribune

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When is the Union going to get its head out of its ass and crack down on flag-of-convenience countries? It's not like we don't have a lot of creative and painful ways to threaten their cartoon economies. For that matter, if push comes to shove, we could just regime change them.

- Jake

Ceterum censeo Chicago esse delendam

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Feb 20th, 2008 at 02:32:14 PM EST
[ Parent ]
Ahh, but you just don't get it. As reported in the Salon, the cause of tax evasion are taxes
Germany has always had a problem with tax evasion, mainly because of relatively high marginal tax rates. Slovakia with its 19% flat tax has no such problem. Austria, which has one of the lowest tax rates of the industrialised countries, has no such problem either, even though, unlike Germany, it has a direct border with Liechtenstein. Nor have the Swiss. The French have a problem with Switzerland and Monaco. The Italians have a problem with Monaco. And the Spanish have a problem with Andorra. But nobody has bigger problems than Germany (which has problems with Luxembourg, Liechtenstein, Switzerland and even Austria). Germany is a country where business elites enjoy among the lowest pay packages, and the highest marginal taxes.
...
The bottomline is that the purpose of this tax razzia is to feed the German public's unsatiable anti-capitalist mood, but it is not going to make any fundamental difference. It is a macroeconomic non-event. The only way for Germany to reduce tax evasion is to reduce marginal taxes. A criminal mind causes an individual to be a tax evader. But on a macroeconomic scale, it is taxes that cause tax evasion, and nothing else.
If all our nations would just participate in the race for the bottom in tax leagues, there would be no problem. But noooooo. They give in to the public's unsatiable anti-capitalist mood, and don't realise that he free movement of transnational capital is just that, free movement, which is freedom and good and inevitable and inarguable, and cannot be stopped. It means that money flows to the most efficient locations, which is right now in Lichtenstein, or the Caymans or Jersey. If they'd just see the light and realise that a fair tax is a flat tax, and at not too high rates, we'd see many less evaders. Or why not just make people pay for the services they use? That's the real fair way. No poor people free-riders no more! No taxes, no tax evaders. It's that simple!
by someone (s0me1smail(a)gmail(d)com) on Wed Feb 20th, 2008 at 03:54:52 PM EST
[ Parent ]
"If the German government succeeds to destroy Liechtenstein's business model,"

"If the Italian government succeeds in destroying Sicily's business model,"

Will somebody please clarify the difference between these two? 'Cause I sure don't see any.

- Jake

Ceterum censeo Chicago esse delendam

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Feb 20th, 2008 at 06:00:57 PM EST
[ Parent ]

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