Friday, April 3, 2009

G20 Revisited

Perhaps I did not make explicit what may be the biggest single mistake (though mistake is certainly the wrong word) governments across the globe, particularly the U.S. government, are making "this time around." That "mistake" is to tax the living you know what out of the citizenry. You may not have noticed that one of the "accomplishments" of the G20 was to come up with a resolution to, if not abolish, put pressure on global tax havens. In a mad effort to save themselves, because that is what all governments do (regardless of creed), try to save themselves, every spare penny owned by individuals is being pursued by any means possible. How does this initiative fit with the ongoing massive transfer of wealth engineered by government from the citizenry to the big/banking nexus? They are all of a piece. What the Obama administration is engaged in is worse than what the corrupt Bush/Cheney regime did from the standpoint that, not only is the fascist business model being replenished from the pocket books of the citizenry, but now we citizens are going to be directly taxed at a greater rate as well.

As a result, do not for one minute believe that economy is on any road to anything but ruin because the total effect of the government's efforts will be to either destroy or scare away all capital from these shores (though the government is doing everything in its power to make it as difficult as possible to do so) to wherever it can be deployed with the idea that decent profits can be made and kept. It is worth noting that perhaps the biggest dispute at the G20 was between France and China regarding the status of tax safe havens. Guess which nation was for leaving them alone, and guess which nation was for attacking them? The People's Republic of China demonstrated that they understand successful capital creation far better than France, and so they opposed the attack on tax havens because they know that wherever tax haven money may have come from, given the chance, it inevitably recycles itself back into "legitimate" investment. And finally, guess which of the two aforesaid nations did not, until relatively recently, (within a generation) have an income tax?


DED said...

Tax System in China

Tax System in France

I'm confused. According to Wiki, both countries have personal income taxes. China doesn't have a payroll tax, but individuals still have to pay taxes on their income.

But if you want to talk about taxes as a percentage of GDP, France has the highest.

Despite China's pursuit of capitalism, the state still owns many industries, particularly the largest. So doesn't that mean that a portion of the company's revenue automatically goes to the state?

Edwardo said...

I've made an amendment to my post. Thanks, Ded.