Saturday, December 10, 2011

If Globalised Economy, then Globalised Tax Framework

The whole world financial setup is in severe danger of sinking in a quicksand of debt.

Not surprising, given they way private financial corporations create money.

The global economy are in a very dangerous position, but there is a relatively simple solution: tax the rich.

  1. Close off the channels that enable corporations to avoid tax, by requiring them to present their accounts in a transparent way.
  2. Impose a Financial Transaction Tax.
  3. Close the tax havens.

There is one main reason that these measures are not already in place.
The "I'm Off Then" threat.
The simple three-word phrase guaranteed to block any attempt to tax corporations.
Govt: We're going to tax you.
Corporation: I'm Off Then.

There is a simple counter to this: Global Taxation Framework for Multi-National (Trans-National) Corporations.

The economists have never ceased to sing the praises of the "Globalised Economy". How wonderful it is to create all that wealth for everyone. Well the Golbalised Economy is evidently in need of a Globalised Tax Framework.

"Framework" because there will be latitude for individual governments to pick which numbers to fill in on its demands. Local variability. But nevertheless, overall, a global regime is logical, just, and could be a good first step to bringing the world economy back to a stable state.

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