Offshore banks and overseas incorporation…
Thursday, August 2nd, 2012A nail in the coffin for the U.S. in the future is the ubiquitous use of offshore bank accounts by the 1%. It’s not just banking for the rich elites either, as many companies like General Electric incorporate overseas. The common goal is to avoid paying U.S. taxes. It’s a similar goal for European companies that want to avoid paying taxes to the E.U. (GE avoids them both). Whether companies or individuals, the effect is the same: to keep a country’s infrastructure running and the worker bees moderately happy as good and healthy consumers, taxes are paid by the 99%, not the 1%. While governments struggle to keep their heads above water in these lean times for the 99%, more money is hidden beyond their tax horizons by the 1%. The problem is not big government—the problem is the rich elites who socialize costs and privatize profits.