Blog/The Hunt for Taxes
Posted May 30, 2019 by Martin Armstrong
While there is a grave danger many speak of with trade wars creating protectionism, that is merely a reaction to the economic decline in the West. It is not merely trade wars; it is appearing also in tax wars. Germany bribing Swiss bankers to get names of Germans with accounts in Germany illustrates that we have gone way too far everywhere. Not even Hitler took it that far, and the whole Swiss secrecy came into play because Hitler made it illegal for a German to have their money outside of Germany. Chancellor of Germany, Angela Merkel, has herself made a comment limited to trade stating that:
“Frankly speaking, the country I have the honor to represent and where I am chancellor has difficulties. And polarization is something that we see in our country as well, which we haven’t had for decades.”
This polarization that is emerging is not simply due to trade. It is also because of taxation and the hunt for taxes globally to sustain governments. Historically, the free movement of capital post-World War II is what reconstructed the world economy. But the socialistic agenda that was adopted by governments has sought to redistribute wealth among the classes and justified bigger government on a grand scale never before witnessed in history. The tax rate in the ancient Roman Empire was about 5% with some paying as little as 2%.
Tags: Protectionism, tax war, trade war