Could little Greece be a more meaningful model than we realize
One longstanding characteristic of Greece has been that the richest people, the shipping magnates in particular, are Greek only in nationality and with possibly more than one legitimate passport. They invest their wealth elsewhere, they live lavish lives mostly in other countries, and they do little to support their native country.
Are China and Russia, giant countries, on the same path now?
The Chinese megarich have trashed their environment, poisoned the political atmosphere, and are uncertain when political winds might blow against them. They are buying properties all over the world, educating their children all over the world, and moving their wealth out of China in as many legal and illegal ways as possible.
The Russian oligarchs are following the same pattern. They stripped the government privativation efforts through bribery and fraud, and fear that the dictator Putin could turn on them at any time. They too are buying properties all over the world, living outside of Russia as much as possible, spending lavishly, and doing little to nothing to help rebuild their country.
This is disturbing and so different from the so-called 1% in the U.S. who are viewed as excessively rich by many, as these wealthy in Russia and China are taking their money out of their countries and not reinvesting for job growth, research, and capital investment. Most Western Europeans and Americans really view themselves as life long citizens with a commitment to their countries, even if they are wealthy.
The Dodd Frank bill's tax rules about foreign bank accounts, drafted primarily by the dangerously resentful Carl Levin and his staff, could over time well start a movement in this country that mirrors what has always happened in Greece, and is now a regular occurance in China and Russia. The rule is called FATCA, maybe a joke on fat cat to some cute Senate aides. It's one more reason that Romney is becoming the favorite.
(postscript 1) - this is meant to say that over time many wealthy citizens could choose to seek citizenship in other countries if they can no longer effectively handle global business as a U.S. citizen. Last I heard, these FATCA rules apply to anyone with as much as $10,000 in overseas accounts, hardly enough for a social security retiree to retire to Costa Rica, Panama, or wherever, and now banking services will be hard to find.
(postscript 2) - for the companies doing work to increase our exports to other countries, this proposed Levin anti-corporate law is actually a triple tax, may a quadruble one. First, companies must compensate overseas employees for their local(foreign resident) taxes, then any financial transactions to support them are possibly subject to taxes at their local banks(eliminating banking services), then corporate profits are taxed, and finally dividends to the shareholders(owners) of the company are taxed. In many countries, local banks are now shunning expat accounts. Even U.S. banks in many countries now can only accept deposits and payments, as mortgages and other financing vehicles are restricted activities for foreign banks.
(postscript 3) - many U.S. multinationals, those companies that sell our products throughout the world to our benefit, have substantial financial assets that have been earned in overseas countries. These have been taxed at local rates and are there for reinvestment and research. Some could be repatriated to the benefit of shareholders, pension funds, and retirees, but the Obama administration insists on a 35% tax on all repatriation. That is an absurdly anti-corporate stance. Who is this President?
Are China and Russia, giant countries, on the same path now?
The Chinese megarich have trashed their environment, poisoned the political atmosphere, and are uncertain when political winds might blow against them. They are buying properties all over the world, educating their children all over the world, and moving their wealth out of China in as many legal and illegal ways as possible.
The Russian oligarchs are following the same pattern. They stripped the government privativation efforts through bribery and fraud, and fear that the dictator Putin could turn on them at any time. They too are buying properties all over the world, living outside of Russia as much as possible, spending lavishly, and doing little to nothing to help rebuild their country.
This is disturbing and so different from the so-called 1% in the U.S. who are viewed as excessively rich by many, as these wealthy in Russia and China are taking their money out of their countries and not reinvesting for job growth, research, and capital investment. Most Western Europeans and Americans really view themselves as life long citizens with a commitment to their countries, even if they are wealthy.
The Dodd Frank bill's tax rules about foreign bank accounts, drafted primarily by the dangerously resentful Carl Levin and his staff, could over time well start a movement in this country that mirrors what has always happened in Greece, and is now a regular occurance in China and Russia. The rule is called FATCA, maybe a joke on fat cat to some cute Senate aides. It's one more reason that Romney is becoming the favorite.
(postscript 1) - this is meant to say that over time many wealthy citizens could choose to seek citizenship in other countries if they can no longer effectively handle global business as a U.S. citizen. Last I heard, these FATCA rules apply to anyone with as much as $10,000 in overseas accounts, hardly enough for a social security retiree to retire to Costa Rica, Panama, or wherever, and now banking services will be hard to find.
(postscript 2) - for the companies doing work to increase our exports to other countries, this proposed Levin anti-corporate law is actually a triple tax, may a quadruble one. First, companies must compensate overseas employees for their local(foreign resident) taxes, then any financial transactions to support them are possibly subject to taxes at their local banks(eliminating banking services), then corporate profits are taxed, and finally dividends to the shareholders(owners) of the company are taxed. In many countries, local banks are now shunning expat accounts. Even U.S. banks in many countries now can only accept deposits and payments, as mortgages and other financing vehicles are restricted activities for foreign banks.
(postscript 3) - many U.S. multinationals, those companies that sell our products throughout the world to our benefit, have substantial financial assets that have been earned in overseas countries. These have been taxed at local rates and are there for reinvestment and research. Some could be repatriated to the benefit of shareholders, pension funds, and retirees, but the Obama administration insists on a 35% tax on all repatriation. That is an absurdly anti-corporate stance. Who is this President?
posted by John Borden at 4:27 PM
1 Comments:
Who is this President is the right question. On the one hand he means well and has goals that create a more fair society. On the other hand he seemingly loathes the corporations that create prosperity in this country. Heck, everyone knows they are not perfect, but find a small business that is perfect and you will be the first, no matter how important they are to job creation.
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