Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
10/15/2013 @ 8:00AM |8,357 views
The International Monetary Fund Lays The Groundwork For Global Wealth Confiscation
http://b-i.forbesimg.com/billfrezza/...0/300x2002.jpgIn this handout provided by the International Monetary Fund (IMF), International Monetary Fund Deputy Director Michael Keen presents the Fiscal Monitor Press Conference October 9, 2013 at the IMF Headquarters in Washington, DC. The report said that emerging-market governments were at economic risk. (Image credit: Getty Images via @daylife)
The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets.
Yes, you read that right. But don’t take it from me. The report itself says:
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“The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). … The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away. … The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth. (page 49)”
Note three takeaways. First, IMF economists know there are not enough rich people to fund today’s governments even if 100 percent of the assets of the 1 percent were expropriated. That means that all households with positive net wealth—everyone with retirement savings or home equity—would have their assets plundered under the IMF’s formulation.
Second, such a repudiation of private property will not pay off Western governments’ debts or fund budgets going forward. It will merely “restore debt sustainability,” allowing free-spending sovereigns to keep tapping the bond markets until the next crisis comes along—for which stronger measures will be required, of course.
Third, should politicians fail to muster the courage to engage in this kind of wholesale robbery, the only alternative scenario the IMF posits is public debt repudiation and hyperinflation. Structural reform proposals for the Ponzi-scheme entitlement programs that are bankrupting us are nowhere to be seen.
If ever there were a roadmap for prompting massive capital flight and emigration of productive citizens toward capitalism’s nascent frontiers in Asia, this is it.
“The IMF justifies its tax increases by highlighting trends in income inequality along with a claimed decline in the progressivity of most income tax regimes. Using “perceived equity” (otherwise known as “envy”) as the key metric motivating tax policy, the report intentionally conflates tax rates with tax revenue, lamenting a decline in the top marginal income tax rates paid by the highest earners. Never mind that these high earners have been forking over more money, a higher percentage of their gross income, and a larger share of aggregate national tax revenue in recent years. It also ignores the Laffer Curve effects that are clearly visible in the data. As for incentive, the report pays no heed to the idea that wealth and income can only be taxed if someone is motivated to create it.”
The report’s most chilling aspect is the clinical manner in which it discusses how to restrict the mobility of the rich, along with the inconvenience of factoring in their “well being.” Again, to quote the report:
“Financial wealth is mobile, and so, ultimately, are people. … There may be a case for taxing different forms of wealth differently according to their mobility … Substantial progress likely requires enhanced international cooperation to make it harder for the very well-off to evade taxation by placing funds elsewhere.
“A revenue-maximizing approach to taxing the rich effectively puts a weight of zero on their well-being—contentious, to say the least. What then if some weight is indeed attached to the well-being of the richest? Figure 19 provides a way to think about the trade-off between equity and efficiency considerations in setting the top marginal rate in that case. … If one attaches less weight to those with the highest incomes, the vote would be to increase the top marginal rate.”
Yes, this is where the bankruptcy of the modern entitlement state is taking us—capital controls and exit restrictions so the proverbial four wolves and a lamb can vote on what’s for dinner. That’s the only way to keep citizens worried about ending up on the menu from voting with their feet. Again, straight from the report:
“There is a surprisingly large amount of experience to draw on, as such levies were widely adopted in Europe after World War I.”
And we all know how well that worked out.
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
it looks like the ass raper are about to start taking more from the bottom
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
Have you ever seen a sheep after it's been sheared? They take most of the wool--95%, and the sheep looks like it had a crew cut.
So why are they proposing just 10%? Maybe they plan to do it again. Getting people used to it. Awww, c'mon, 10% is just a hefty sales tax. 10% is something people won't oppose with their hearts and souls. Just about everybody can justify not resisting if it's just 10%. The hope is that it will solve some problem. But it won't. This IS the problem--not the solution. I wish I could legally steal peoples savings to pay my gambling debts.
Hatha
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
Quote:
Originally Posted by
Hatha Sunahara
Have you ever seen a sheep after it's been sheared? They take most of the wool--95%, and the sheep looks like it had a crew cut.
So why are they proposing just 10%? Maybe they plan to do it again. Getting people used to it. Awww, c'mon, 10% is just a hefty sales tax. 10% is something people won't oppose with their hearts and souls. Just about everybody can justify not resisting if it's just 10%. The hope is that it will solve some problem. But it won't. This IS the problem--not the solution. I wish I could legally steal peoples savings to pay my gambling debts.
Hatha
A simple 10% tax would kick in the capital controls. Then you'd have to prove your expenses before you could withdraw your money. It would be illegal to withdraw and hold cash, transport cash, or move money across borders.
After the 10% tax, it doesn't matter anymore because the money isn't moving. It can be taxed again, or totally confiscated, at that point. The Cyprus bail-in, where they destroyed western banking precedents for a paltry couple billion, was a test run.
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
Quote:
Originally Posted by
vacuum
A simple 10% tax would kick in the capital controls. Then you'd have to prove your expenses before you could withdraw your money. It would be illegal to withdraw and hold cash, transport cash, or move money across borders.
After the 10% tax, it doesn't matter anymore because the money isn't moving. It can be taxed again, or totally confiscated, at that point. The Cyprus bail-in, where they destroyed western banking precedents for a paltry couple billion, was a test run.
Right, the old nose of the camel in the tent manuever. Who the hell gave these asshats the power to simply take our private property without our consent? I know I didin't. 1%, 10%, 75% it's all the same damn thing: if you give an inch these fuckers will try to take it all. This infuriates me and I hope it does you. And this is a perfect illustration of how gold and silver are protectors of personal property rights: they can't shave 10% off the physical metal that you hold outside of their grubby fucking hands.
You know something, isn't it funny how they are so quick to apply a supposedly fair "wealth tax" on you and me, but never consider applying such tax on the wealthiest who possess by far the largest and most concentrated wealth: the bankers!!!!
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
Quote:
Originally Posted by
mamboni
Good report! The gov has to have a scape-goat for the next crash.
Re: IMF Proposing 10% Supertax Bail-in On All Eurozone Household Savings
I love how tbe MSM couches shit like this. The IMF is floating a "proposal" to tax the other seven shades of shit out people. Like they're looking for approval from some mysterious council. This is just the shot across the bow. The second article i saw posted gets it right.
