Great Evasions From Taxes And Responsibility. Krugman Accuses Republicans Of Everything
When cheating is legal, is it cheating? Many worthies in Europe are affecting surprise that Luxembourg allowed hundreds of the greatest plutocratic corporations to escape amounts in taxes similar to the “austerity” they try to impose. That means that tax evasion by the richest is paid by the poorest.
Tax avoidance, through Luxembourg alone, by the richest persons in the world, are of the order of 10% of the yearly Federal Budget of the USA (you will not see this in the newspapers, I computed it myself).
People are starting to see through this Kabuki theater. While Luxembourg flaunted its criminal nature, there was a bloody demonstration in Brussels against renewed “austerity” (from a new “conservative” government). No less than 20% of the capital’s population was in the streets, French and Flemish speakers united. Two police officers were grievously hurt.
Demonstrators burned cars, but did not set fire (yet!) to the European Commission and Parliament buildings. Let me be clear: the European Commission and the European Parliament have known, for years, of Luxembourg’s dirty nature. I have written of this institutionalized thievery, for years. It has been known, for years. All the politicians are accomplice… Indeed, none of them protested stridently against institutionalized tax stealing.
Jean-Claude Junker was the Prime Minister of Luxembourg, for 19 years, and, thus, Luxembourg’s thief in chief (plus 5 years, prior, as Luxembourg finance minister). Junker’s punishment? He is now head of the European Commission. It is eerie, surreally obscene, a tiny bit as if Himmler had been made president of Israel (in the last few days of WWII, Himmler cooperated with the Swedes to save thousands of Jews! Both were obviously trying to make amends, while Nazism was suffering its well deserved apocalypse. Some will say the comparison is exaggerated; however, EU austerity-tax cheating by fat cats has killed probably thousands of people already).
Satanic corporate officers would show up in Luxembourg, and, within the same business day, organize the tax evasion of their employer, with the full participation of the authorities of Luxembourg.
Luxembourg whined that an illegal act had been committed: state documents had been revealed (28,000 pages on 340 companies, obtained by a consortium of journalists, ICIG; they have a consortium… to escape national censorship; many firms paid less than 1% on profits, whereas the law is 12.5%; other countries are cheating, including, Eire, the Netherlands, and the UK). Infamy knows no shame.
But one does not need to rob the state thugs of Luxembourg to expose the truth about Luxembourg. The industry of Luxembourg is organized crime.
According to the most recent data from the U.S. Bureau of Economic Analysis about $95 billion of profits moved into Luxembourg from U.S. companies in 2012 alone. In Luxembourg, those $95 billion of profits were basically not taxed. Direct investment from the U.S. into Luxembourg in 2013 was $416 billion. More than 200 U.S. companies operate there.
Luxembourg’s GDP per capita in 1961 was $2,200 (yes, two thousand dollars). Now it is more than 120,000 dollars. Only the tax cheaters Liechtenstein (140 K) and Monaco (180 K) are richer. What to do, when a country thrives from thievery? Why don’t the French and Germans send a few special forces?
Here is a description from the prime financial channel of the USA, CNBC. Here is the start of the associated text: “Here’s an international money riddle for you: What country is smaller than Rhode Island yet is the most attractive place for companies and investors to park their money, behind the United States? Ireland? Cayman Islands? Try Luxembourg.”
Notice that CNBC admits implicitly that the world’s greatest tax cheat is the USA itself (banking secrecy is often total in the USA, with shell companies, “charities”, “trusts”, and “Dark Pools”). And so it is.
So don’t ask why Obama did nothing for the USA. Ask why he should have done something against his sponsors.
And then rolled another editorial of Paul Krugman, accusing the Republicans of the “Triumph Of Wrong”. Said he :
“From Day 1 of the Obama administration, [republicans] have done everything they could to undermine effective policy, in particular blocking every effort to do the obvious thing — boost infrastructure spending — in a time of low interest rates and high unemployment.
This was, it turned out, bad for America but good for Republicans. Most voters don’t know much about policy details, nor do they understand the legislative process. So all they saw was that the man in the White House wasn’t delivering prosperity — and they punished his party.”
The usual flood of comments approving that childish and irresponsible vision flooded in, as a self-congratulatory orgasm of surrealism. My own comment was completely lost in that self-loving flood.
The truth, though, is that the democrats were in total control of Congress, the White House, and had a super-majority in the Senate (allowing to override filibusters), in the beginning of Obama’s reign. That was highly problematic, as the Democratic Party is controlled by plutocrats.
What were they going to do? Legislate against themselves? Discover that Delaware enables even more tax evasion than Luxembourg, as long as one is really very rich? Not embarrassed, the plutocratic owners ad operators of the “Democratic” Party accused Republicans “of doing everything they could”, to have, presumably, psychologically forced Democrats to do nothing anti-plutocratic.
I pointed out that, on November 5, 2008, Obama went to work at a hedge fund, in Chicago. That should have alerted the so called “progressives”, that something was not quite right (I certainly noticed!). But it did not. Even six years later, the (pseudo-) progressives still do not get it.
How long will it take for We The People to realize the present governmental set-up, complete with its attending pundits, is a plutocratic mood organization? I guess, as long as the New York Times keeps on censoring me, there is little hope. But then, why do I send money there?
Habits are hard to break. Ultimately, ideas break down, when people start breaking things down. This is how it was always done. Ultimately, violence is not just a political activity, but a psychological one, because it requires a lot of energy to break out of old systems of thought, and even more, out of old systems of mood.
Let see what Europeans worthies do, having named a thief in chief as head of the European Commission, and now seeing the rabble raise in a fury. A hint: if next time demonstrators make it to the European Parliament, breaking and burning, said Parliament may reach a clearer, and more cautious mood.
Austerity? You want austerity? Then why not start with the plutocrats?