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IMF Proposal To Tax Bank Deposits

by James Hall, The Sleuth Journal:

A report by Agence France-Presse, the International Monetary Fund strongly suggests countries tax the rich to fix deficit, is a caveat for a bigger risk. “The IMF has set off shockwaves in Washington by suggesting countries fight budget deficits by raising taxes. In its Fiscal Monitor report, subtitled “Taxing Times”, the Fund advanced the idea of taxing the highest-income people and their assets to reinforce the legitimacy of spending cuts and fight against growing income inequalities.”

Before all those occupy supporters rejoice and start their partying, the sober reality of the actual methods that the financial elites would use to implement revenue enhancement, needs a closer examination.

Contrast the interpretation from Europe with the broader assessment in, IMF Discusses A Super Tax Of 10% On All Savings In Eurozone.

“The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). There have been illustrious supporters, including Pigou, Ricardo, Schumpeter, and—until he changed his mind—Keynes. The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away (these, in turn, are a particular form of wealth tax—on bondholders—that also falls on nonresidents)

The tax rates needed to bring down public debt to pre-crisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth(*).”

The rhetoric of taxing the supra rich floats the argument that the pain of confiscation is fine when the wealthy are bled. Such poppycock meant for the unsophisticated, clings to the notion that the world operates under some noble objective, of fair taxation levies. How ridiculous.

Analysis from The Market Oracle, Raul Ilargi Meijer adds the correct context, implication, and significance in this IMF “Taxing Times”.

“We can’t however, discard the possibility that this appears in an October 2013 IMF report precisely BECAUSE it, and its peers in national governments, have found a different way to achieve the same goals. The underlying ideas are clear: most governments have debt levels that can’t be rolled over into the future much longer. And inflating them away is not an option: that can’t be done without increased consumer spending, and consumers are maxed out. Radical solutions are called for. Not just in Europe either, US government debt will need to be dealt with too.”

The exact detail scheme of any wealth toll certainly has to be broad in scope for remotely approaching a reprieve on immediate default. The sums of funds necessary to rescue the global banksters gambling tab requires that claims on assets, once thought to be secure, must be tapped.

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3 comments to IMF Proposal To Tax Bank Deposits

  • Global Grist

    There is no clearer evidence that the financial system is broken then to tax people’s deposits or to require bank bail-ins. We are witnessing the end of the current fiat money system experiment. A re-order of the financial system is upon us, but the destruction and tragedy of making that transition has yet to unveil. It’s coming soon, and will shake the world.

  • Millicent

    A Ponzi scheme headed into the final phase of the “crack-up boom”.

  • windrunner56

    Thank God good charities like the Clinton Foundation and others (rockefellas, Rothschilds etc) will not be affected. You know….with all the good work they do for humanity and all.

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