IMF: A Confiscation Tax is Headed Your Way
Jeff D. Opdyke
Wednesday, October 30, 2013
Now, I’m scared…
And if you, too, care about preserving your personal wealth, then a new report released this month by the International Monetary Fund (IMF) should leave you paralyzed with fear and desperate to find measures to counteract the attack that will soon take aim at your pocketbook.
In the 100-plus-page report dryly titled Fiscal Monitor: Taxing Times, the IMF has essentially given lawmakers from deeply indebted countries a paint-by-numbers kit on how to extract larger tax revenues from anyone with any level of wealth. Though the IMF’s language is couched in faux-objectivity, the underlying message is shockingly clear: Many developed nations, especially the United States, have abundant opportunities “to raise revenue from the top of the income distribution,” using a variety of methods including the direct confiscation of personal wealth.
But it’s best that I let the report speak for itself and let you come to your own conclusions…
“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). … 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.”
Those sentiments, from page 49 of the IMF report, should scare the hell out of anyone with even a modicum of wealth … for that wealth could soon be under assault.