The rich in heavily indebted countries are as prized as rhino horns, targeted with increasing zeal by government workers to pay off the interest, interest on interest, interest on interest on interest and so on of sovereign debt. A new class is emerging of Tax Refugees, willing to give up their citizenship for tax havens.
"A tax crackdown by the United States has sent more than one million Americans and green-card holders living in Canada scrambling to figure out how to comply.
The move is part of a push by the U.S. Internal Revenue Service (IRS) to make sure U.S. taxpayers are paying what they owe on foreign accounts. Unlike most countries, the U.S. requires its citizens to file annual tax returns based on their worldwide income, regardless of where they live...."
Read more:
http://www.theglobeandma...esidents/article584297/
France's Socialist leanings are driving the wealthy overseas. Belgium or Bust. One wonders what will happen when the rich vacate or get creative with tax declaration. Will the definition of "rich" get a downward adjustment?
"FRANCE'S leading actor, Gerard Depardieu, says he is giving up his French passport after the prime minister called him "pathetic" for seeking to avoid taxes by moving to Belgium.
In an open letter to Prime Minister Jean-Marc Ayrault, the 63-year-old Cyrano de Bergerac and Green Card film star said he had been treated unfairly after years of supporting France and paying millions of euros in taxes...."
Read more:
http://www.theaustralian...-e6frg6so-1226538072852
Nowhere to run, not even once safe-haven Switzerland.
"The German upper house of parliament, dominated by opposition parties, has rejected a tax treaty aimed at legalising undeclared assets held by Germans in Swiss banks. The accord is set to fail if no compromise is found next month....
The accord would impose a retroactive levy of up to 41 per cent on capital in offshore bank accounts held by foreign citizens, impose a tax on future interest income and allow the account holders to remain anonymous..."
Read more:
http://www.swissinfo.ch/..._deal.html?cid=34023936
A FUBAR situation is in formation. Western governments are in austerity mode while they should have been spending to make up for the declining private sector spending. Hunting down the holders of wealth and investors only serves to worsen the situation, creating a downward spiral in private sector spending. Lack of private sector spending or capital flight reduces employment and economic growth, without which the government lacks the taxes to pay its workers and maintain the perks of civilisation (security, infrastructure, social security etc). Laying off government workers while cutting spending only serves to fray the fabric that holds society together sparking off protests, strikes and demonstrations. The private sector will not be attracted to a country whose workers are an ever-present menace on the streets and cannot be depended on to clock the number of working hours expected. And so the downward spiral continues.