The IMF Wants You To Pay 71% Income Tax

Tyler Durden's picture

Submitted by Simon Black of Sovereign Man blog,

The IMF just dropped another bombshell.

After it recently suggested a “one-off capital levy” – a one-time tax on private wealth as an exceptional measure to restore debt sustainability across insolvent countries – it has now called for “revenue-maximizing top income tax rates”.

The IMF’s team of monkeys has been working around the clock on this one, figuring that developed nations can increase their overall tax revenue by increasing tax rates.

They’ve singled out the US, suggesting that the US government could maximize its tax revenue by increasing tax brackets to as high as 71%.

Coming from one of the grand wizards of the global financial system, this might be the clearest sign yet that the whole house of cards is dangerously close to being swept away.

Think about it– solvent governments with healthy economies don’t go looking to steal 71% of people’s wealth. They’re raising this point because these governments are desperate. And flat broke.

The ratio of public debt to GDP across advanced economies will reach a historic peak of 110% next year, compared to 75% in 2007.

That’s a staggering increase. Most of the ‘wealithest’ nations in the West now have to borrow money just to pay interest on the money they’ve already borrowed.

This is why we can only expect more financial repression from desperate governments and established institutions.

This means more onerous taxation. More regulation. More controls over credit and capital flows.

And that’s only the financial aspect; the deterioration of our freedom and liberty will continue at an accelerated pace.

Can a person still be considered “free” when 71% of what s/he earns is taken away at the point of a gun by a bankrupt, bullying government? Or are you merely a serf then, existing only to feed the system?

This is why we often stress having a global outlook and considering all options that are on the table.

Because the other side of the coin is that while some countries are tightening the screws and making life more difficult, others are taking a different approach.

Whether out of necessity or because they recognize the trend, many nations around the world are launching new programs to attract international talent and capital.

I’ve mentioned a few of these already– economic citizenship programs in places like Cyprus, Malta, and Antigua (I met a lot of these programs’ principals at a recent global citizenship conference that I spoke at in Miami).

Then there are places like Chile and Colombia which have great programs for entrepreneurs and investors. Other places like Georgia and Panama have opened their doors to nearly all foreigners for residency.

Bottom line– there are options. Some countries are really great places to hold money. Others are great to do business. Others are great places to reside.

The era we’re living in– that of global communications and modern transport– means that you can live in one place, your money can live somewhere else, and you can generate your income in a third location.

Your savings and livelihood need not be enslaved by corrupt politicians bent on stealing your wealth… all to keep their destructive party going just a little bit longer.

The world can truly be your playground. You just need to know the rules of the game.

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LetThemEatRand's picture

Why are these proposed increases in taxes always tied to income instead of capital gains realized during polo matches by guys that never worked a day in their lives?  Oh, right.

And now, for some Polo trivia:

What are all the people doing out on the field at halftime?

It’s customary at polo matches to invite the public onto the field at halftime to tread in the divots kicked up by the horses.  The custom has a practical as well as a public-relations value: the field is repaired for the teams by the time they begin the second half of play.  It’s not clear who was the first enterprising club manager to realize he had an abundant and cheap grounds-keeping crew at his disposal, but old-timers will tell you the job used to be done by hired help.  In the 1920s, for example, laborers at the polo clubs tapped in the divots after every period with a tool resembling an oversized croquet mallet.  Between games, wives of the polo grooms, many of whom were immigrants, could be found on hands and knees cutting dandelions and other weeds from the field.

rbg81's picture

Oh, well, no problemo--as long as its just ONE time.  [/s]

Seriously, these assclowns can eat shit and die.   Of course, they'll probably try to do it by other means.

LetThemEatRand's picture

Official IMF (and Fed) slogan:   "su casa en mi casa"

Translation:  "your house is my house"

 

Boris Alatovkrap's picture

In poor countryside village, "su casita est mi casita". ("You are shack is my shack")

Boris Alatovkrap's picture

In Washington, "casa blanca est casa de crack addict chief executivo"

Anusocracy's picture

Job of the useless idiots at the IMF: fixing the world's economies until they all are totally destroyed.

On schedule as of 2013.

edotabin's picture

Not until a law is passed that says the government can only spend 80% of what it collects in taxes. The 20% goes to pay down debt until it is zero.  Once zeroed out, the law will allow only for surpluses to be run by the government from now and in perpetuity.

 

Dr. Everett V. Scott's picture

.

 

edotabin says: "Not until a law is passed that says the government can only spend 80% of what it collects in taxes. The 20% goes to pay down debt until it is zero."

 

You need to understand that America generates a HUGE amount of wealth. There is plenty of money to keep everyone healthy, clothed, sheltered and well fed, with plenty of money left over.

 

But you forget one thing: most of the money confiscated, either through taxes or inflation, goes straight into the pockets of government bigwigs and government employees. So you are asking them to voluntarily cut down on what they've been taking from us.

 

... Do you see the problem there?

 

.

dick cheneys ghost's picture

most of our 'so called wealth' is stolen from the ROW thru the reserve currency Dollar and the petro-dollar........we'll see how 'exceptional' we are when the dollar dies.........

Manthong's picture

There might be some merit to this strategy as it should produce a 99% reduction in the existence of bankers, state deciders and functionaries.

zhandax's picture

Simon is starting to sound like Ronnie Ray-gun.  I guess you have to be over 40 to remember that Carter had a top tax rate of 79%.  It had been on up there since WW2.  Ronny came in while the guy Carter told to get inflation under control (Volker) was sticking it to everyone (but savers) with high interest rates.  When Ronnie cut taxes, it created the 80's boom.  It is impossible to repeat that performance due to 1). top tax rate now is only 39%. 2). Top 1% didn't make almost 20% of income in 1980.  3)  Regulatory capture to enrich the top .01% didn't blossom until Glass Stegal repealed.  4) government spending wasn't responsible for 40% of GDP.  5). There were a few thousand less federal regulations on businesses.  6). There were still people who hadn't recognized the Ponzi and were still willing to create new businesses.

Hey Simon, come on down on the floor with the rest of us and realize that the last thing .guv will do before the implosion is to soak the wallet fags.

Occident Mortal's picture

The author has confused wealth and income.

Let's be clear. There are 2 kinds of 'rich people' there are people with a lot of wealth (lots of assets), and there are people with high incomes.

These people are NOT the same.

Historically governments have taxed income much more aggressively than they have taxed wealth. This makes it far harder for average people to accumulate any wealth and it protects people who already have wealth.

Also it slows the velocity of money as it allows considerable wealth to stagnate.

The other crucial thing to understand about the tax system is that individuals pay tax on their GROSS EARNINGS. Whereas corporations pay tax on their NET EARNINGS.

So individuals pay large income taxes on their gross income, making it difficult for them to save and invest.

Wealth is not taxed at all and can be invested in corporations where again the wealth is not taxed and income taxes (corporation tax) is only paid on the net income, making it very easy to retain the wealth.

zhandax's picture

I will take one exception to your claim, at least in the US; wealth is taxed at death.  But there are planning techniques to avoid the brunt of the effect if, with a sufficient estate, one is aware and employs good attorneys; and there are ample tax-advantaged opportunities to transfer wealth prior to death.

GetZeeGold's picture

 

 

 

 

IMF<----- who says America doesn't support terrorism?

Serenity Now's picture

Occident Mortal,

Every sentence in your post is wrong.  Start over.

j0nx's picture

I see nothing wrong with his post other than your comment stinking it up.

zerozulu's picture

Very soon discussion will be, "how much sheeple should be allowed to take."

Bangin7GramRocks's picture

So hypothetically, let's make it all wealth across the board. And for shits and giggles let's say it was iron clad without any loopholes. Many of the poor dummies on here would still be against it. I call it Joe the Plumber syndrome. Every poor dummy thinks that some day he will be filthy rich and he will want it all to himself. Simpletons.....

Blankenstein's picture

Don't forget about all of the write-offs that were available back then, especially to the very wealthy. 

edotabin's picture

Love it or hate it a government is necessary and some taxes need to be collected. The fact that this has been warped, distorted and ballooned into a 17 T nightmare is strictly based on mismanagement, misdirection, outright theft and a rigged system of money creation.

I am not expecting them to voluntarily do anything. They haven't done so for so many years, why would I think they will start now? Love him or hate him Ron Paul has been spoken about currency debasement in congress multiple times. There is ZERO chance they don't know what they are doing.

I am hoping that through knowledge and awareness their tricks will no longer fly. Progress is slow but awareness is reaching critical mass.

On the other hand, it just may be a ploy to scare off more companies or make America even less competitive so as to provide the final blow and send the country into chaos. Between the way Obamacare is going and a 71% tax bracket, businesses would probably favor Zimbabwe.

 

zhandax's picture

When you understand the difference in a tax and a tariff, please come back.

GetZeeGold's picture

 

 

Is there an option C?

zhandax's picture

Sure.  Grab your ankles.  O prommised.   Just close your eyes first.

edotabin's picture

When you can get past quips, let's talk.

Parrotile's picture

Taxes, Tariffs, Duties, Levies, "Adjustments" - all "different words" for the SAME Thing - removal of EARNED income / Profits under duress.

HOWEVER, someone has to fund all the "Invisible Services" which are of no interest to the Private sector (too little profit perhaps??) and that "someone" is usually the Government.

Sean7k's picture

Your first paragraph is a perfect example of cognitive dissonance. You recognize the effects of government and taxes, but remain ignorant of the cause. Worse, your blanket statement has zero basis in fact. Prove that government and taxes are necessary. Then progress to your solution. Unfortunately, since government and taxes are the problem, your solution will always be composed of caveats. 

 

edotabin's picture

Understanding something and understanding its chances of implementation are two different things. I think to go to a zero tax / small government environment quickly will not happen without major, major upheaval and change in the way this country is run.

 The government will not end the fed without many election cycles and us voting in peple that clearly want to do it. Besides, assuming they end the FED, there is a crooked culture in Washington. Their spending habits revolve around concentration of power and not necessarily facilitating the daily needs of the economy and the people. Removing the debt associated with each dollar would be a huge benefit but they will find a way to screw it up. As the power of central banks increases around the world and the foundations for a global currency qre being laid, how much value would this newly created, debt-free dollar have? If for nothing else but spite, you will have trouble buying bubble gum from another country. They will claim, that the Fed was dumped because we ran deficits so as to reduce credibility. They will claim we defaulted.

This has to be backed up and unraveled slowly. That's why I proposed balancing the budget and running only surpluses in government, legally bind them to that.  Over time this will weed out the crooks and crooked culture. There will be no room for play.  Once you establish this and the crooks are weeded out, you can go to honest money creation.

 

 

robertocarlos's picture

Well then, just shoot the fuckers dead.

XitSam's picture

You didn't answer the question, why is government necessary?

And why does it have to be unravelled slowly?

ManOfBliss's picture

False. The government is not necessary.

i-dog's picture

So, if they increase taxes by 50% [each year], they can increase spending by 50% [each year]? I think they'll go for your 'plan'.

Boris Alatovkrap's picture

On other side of coin,... never is mind, taxation rate excess of 50% is leave no other side.

BlackChicken's picture

71% will be considered a good rate, once our guns are taken away after the "Great Crash of 2014".

DoChenRollingBearing's picture

Want to keep your liberty?  Gold and gunz, fishez!

Citxmech's picture

Hell, they're already up to about 50% if you factor in both income tax and add in the 'inflation' tax. . . 

What's another 20%?

>=[

GetZeeGold's picture

 

 

Boris has diplomatic immunity....he can do stuff we can only dream of.

mofreedom's picture

I'm sorry, I'm not of this planet and thus am an illegal alien, alien and thus not bound by your earthly international rules and you owe me asylum because I am a poor alien.

Where is that turn-coat Paul Ryan when I need him.

No IMF.

No Paul Ryan!!!

Anusocracy's picture

My brother denies being related to me and claims that I am from a parallel universe - the Analverse.

mofreedom's picture

Christ, bless His Holy Name, knows we can use this crap in the court of law because the court of law loves illegals and there's plenty of precendence for all of us to claim we are illegals and get a free pass.

Oh, I'm sorry, I was brought here to the US by the CIA from communist East Germany (which I was) and given to a family that had just lost their baby child.  I have been using his ID since I was two months old.

Have Havoc?

edotabin's picture

MoFreedom,

You are capable of interstellar travel... and you chose to deal with humans? We have got to be the some of the most backward beings in the universe. Trade your food stamps  and other government goodies for star fuel (or whatever you use) and go find a decent, properly-evolved species 2-3 light years away. Run while you still can.

StandardDeviant's picture

Yes; in fact, we're "so amazingly primitive that [we] still think digital watches are a pretty neat idea".

Parrotile's picture

Two to three ly places you towards the (presumed) outer edge of the Oort cloud. Our nearest star (Proxima Centauri) is 4.2 ly and to the best of our current knowledge, has no obvious planetary system, within its "goldilocks zone".

Any "evolved Species" living in the Oort cloud will certainly come under the "It's Life, Jim, but NOT as we know it" classification!

philipat's picture

IMF staffers of course are exempt from paying Income tax. The hypocracy is quite staggering.