Showing posts with label the rich get richer. Show all posts
Showing posts with label the rich get richer. Show all posts

Wednesday, August 29, 2012

"Now you see it....now you don't."



I recently read that the Greek government, which we all know is an economic basket case, is about to finalize a treaty with Switzerland that will allow them access to the records and the money, estimated to be up to 20 billion Euros, that wealthy Greeks have parked in Swiss banks as a tax dodge.  This follows on similar treaties that Germany, Austria, the UK, and I believe the US, too (?) have negotiated, all to catch tax cheats and bring in more dollars, pounds, and Euros to the respective government coffers.

The problem is, however, that there is a lag time of many months after signing a treaty before it goes into effect.  The wealthy, some say with the help of their Swiss bankers, are using this interlude to move their money to new tax shelters being set up in wealth-friendly Hong Kong and Singapore.  In other words, it's still out of reach of the tax revenooers.

Here's my question:  In this country at least, the wealthy argue that their taxes should be cut dramatically because it is they and their money that create jobs.  If billions of dollars (some say TRILLIONS of dollars) are constantly on the move in this giant shell game of tax dodge, how is that creating jobs?

Somebody please 'splain it to me.  What little business acumen I have doesn't understand how this ultra-high-roller game is played.  Seems to me this is just making the case for those who argue "the rich get richer".  What am I missing?

S