A fascinating article from Russia’s KM.RU by Valentin Katasonov. It goes a long way towards explaining the contradictory signals emanating from Russia regarding support for FATCA. Mr. Katasonov outlines the relationships between some rather strange bedfellows – or perhaps they’re not so strange at all.
Here is the original Russian-language version:
FATCA: о чьих интересах хлопочут российские власти?
And here is the imperfect, yet reasonably intelligible Google Translation version:
FATCA: whose interests are fussing about the Russian authorities?
IRS wants to make agents out of banks and other financial institutions of the world
Abbreviation FATCA increasingly common in the Russian media. So short is called American law, the full name of which – «Foreign Account Tax Compliance Act». Translated – “On the Foreign Account Tax Compliance.”
FATCA as a tool for the construction of Pax Americana
The law was signed by U.S. President more March 18, 2010. Then began its gradual enactment. The next year, he should enter into force in its entirety. It belongs to a new generation of American laws, which can be called extraterritorial. These are the laws that apply to a number of other countries, and sometimes even the whole world. These are laws that help build Washington Pax Americana.
FATCA law was passed under the pretext that the U.S. Treasury regularly loses a large amount of taxes to withhold individuals and legal entities the U.S., bringing their income and assets outside of U.S. jurisdiction. The American tax system is set up so that individuals and legal entities must pay U.S. taxes regardless of where the income and asset allocation. Only on departure of U.S. citizens and companies in the offshore, according to some estimates, the U.S. federal budget annually loses about $ 100 billion. And how much he loses by U.S. citizens and companies in other jurisdictions, no one believed. For many years, even decades, Washington tried to fight tax deviators located outside the country, but the effect was short.
Act FATCA, according to its initiators, should put an end to such deviators once and for all.How? And just doing some banks and other financial institutions all over the world by the American Tax Service (IRS – Internal Revenue Service). Financial and banking organizations must transmit to IRS information about their customers with U.S. origin or having a business (commercial) due to natural and legal persons U.S.. In the list of customers, among others, and included persons who are holders of U.S. green card. If necessary, such agents should engage even the recovery of taxes from such customers in favor of the United States.
We are witnessing a unique alignment of the global system, “head” which is the U.S. agency, and all financial and banking organizations formally sovereign states coming under the administrative control of this department. Those who refuse to Uncle Sam’s invitation to become part of this system, are automatically “outcasts.” Against such financial and banking institutions, Washington will impose sanctions in the form of withholding 30% of the funds that such organizations will conduct through the U.S. banking system. And since the modern world financial and banking system is based on the dollar, it’s hard to imagine a bank that would not exercised dollar transaction. All such transactions pass through the correspondent accounts of non-US banks in U.S. banks. One gets the impression that the fight against tax deviators Washington – just an excuse to enactment. Home, unpublicized goal FATCA – build a global financial system, the individual “cells” which is not only economically, but also administratively subordinated to official Washington and of the financial oligarchy, whose service is formal authority USA.
World reaction to the FATCA
So, in the next year, all non-US banks have to start practical work to assess and customers falling under the definition of “American taxpayers” and at the end of the year (according to other sources – in March 2015) to submit their first reports to the IRS. Accordingly, Washington sanctions against non-US banks, evading honorable duty “U.S. tax agent” can be used to start a year and a bit.
It is not hard to imagine what the reaction around the world called the law – especially among U.S. citizens. Began renting U.S. passports: U.S. citizens do not want to be under the “hood» IRS. Several million Americans live permanently outside the United States, they will first give up U.S. citizenship.
It is not necessary to speak about the reaction of non-US banks and financial institutions.Statesmen and politicians in several countries grumbled, grumbled, calling the law a manifestation of the “American colonialism”, but were built by a team of Uncle Sam.
Especially that Washington has made some concessions. He invited other countries to a two-tier system: non-US banks provide information on U.S. taxpayers not directly the IRS, and their national tax authorities. And those, in turn, has sent her to Washington. To do this, Washington was asked to sign the relevant bilateral intergovernmental agreements between the United States and other countries on the implementation of FATCA. About 50 states have expressed willingness to sign such agreements. Hastened to conclude agreements, countries such as the UK, Denmark, Germany, Hungary, Ireland, Japan, Mexico, Norway, Spain, Switzerland. A few days ago the media reported that signed six agreements – with Malta, Bermuda and three dependent territories of the United Kingdom (Islands of Jersey, Guernsey, Maine). Thus, at the end of this year, the number of bilateral intergovernmental agreements on FATCA to 18. Banks of those countries that do not sign the intergovernmental agreement, must go into the “direct subordination” of the U.S. tax service.
Russia’s reaction to FATCA
And as Russia reacted to the law FATCA? Initially (two or three years ago), the reaction was very negative. In particular, the Russian Foreign Ministry described the law as an attempt by Washington to impose its diktat to other countries of the world. Then, in 2012, the band came complete silence. Our government would not acknowledge the law FATCA, no measures were taken. Only occasionally by our officials made comments that if Russia started to fulfill the terms of FATCA, it would enter into conflict with the Russian legislation.In particular, FATCA provisions contradict the Russian banking secrecy and the Civil Code as regards contractual relations gap (if the Russian bank closes the account of American draft dodgers tax). Some Russian banks are nervous, knowing what position they would be if Russia does not sign a bilateral agreement with the United States. Then, without much from posting, departments “top” command was given to prepare their proposals for amendments to the Russian legislation to bring it into line with the new conditions generated by FATCA.
Only in 2013 occurred as a “perturbation”, which is periodically backed up by the Minister of Finance A.Siluanova statements that Russia is preparing a bilateral agreement on FATCA.About our angry statements of two or three years ago, no one remembers.
Siluanov spring promised that, say, to the end, an agreement will be signed. Is the end of the year, it has not yet been signed. What do the banks? The new chairman of the Bank of Russia E.Nabiullina said recently that banks before 2016 will not be able to prepare for compliance with FATCA. But Washington is adamant, stating that any deferral is not going to give. Incidentally, it is not only the time but also money. Back in 2012 a non-profit partnership “National Payments Council” conducted a survey of 36 Russian commercial banks in order to find out how they are preparing for the implementation of FATCA and what are their capital and operating costs associated with implementation. Only the initial cost of buying the software, training, creation of methodological framework should be not less than one million dollars per bank. Ie across our banking system is about a billion dollars. This sensitive issue is bypassed. According to the “default” is the cost of Russian banks, as in the good it would have to be the cost of the one who stirred up all this mess.That is, the cost would have to be covered by the U.S. Internal Revenue Service. But, however, all this stuff on the background of the problems that may arise from Russian banks after that will come into full effect to the law IRS. After all, even a bilateral agreement with Washington is not a guarantee against possible sanctions. May become subject to sanctions and our state, if the IRS deems that the Tax Service zealously enough to meet the requirements of the law and the agreement. Subject to sanctions can be taken separately and the Russian bank. Recall how in the middle of the last decade, Washington instructed to close many Russian banks correspondent accounts in U.S. banks only on “suspicion” of money laundering and terrorist financing. I do not exclude that if U.S. lawmakers had the idea to legalize the “Magnitsky list”, then eventually in America may appear as a “black list” of Russian banks that violate FATCA.
About Russia, FATCA and our “elite”
However, from any adversity there is an exit. A way out of the situation called «FATCA» was from the beginning and from Russia. I recall that Washington within the scheme of bilateral intergovernmental agreement offers two basic variants. Conventionally, they can be called “asymmetric” and “symmetric” version of the Agreement. The first assumes that the foreign country takes unilateral commitments to implement the conditions dictated by U.S. law FATCA. The second option assumes that the two contracting parties undertake to provide the necessary information to the other side of the tax that may apply to legal entities and individuals of its State. In the second embodiment, the foreign country and keeps his face and solve its fiscal problems by identifying their tax evaders in the United States.
Preparation of agreement with the U.S. Treasury to our over several months was conducted in complete secrecy. Unofficial sources claim that both options were discussed. Finally, in October, our media have reported that the Russian Ministry of Finance is preparing a very radical agreement, which even differs from the “symmetric” version of the proposed Washington. Document called “intergovernmental agreement on the exchange of information of a fiscal nature.” It is not at all mention of American law FATCA, the agreement looks like a mutually beneficial agreement between two sovereign and equal states. This could only rejoice.
But that’s about a month ago, on November 28, the Prime Minister of the Russian Federation DA Medvedev listened to the preparation of the agreement. Prime Minister instructed the Ministry of Finance and the Central Bank “accelerate” and prepare an agreement to January 20, 2014. This is normal. Troubling more. Many media disseminated by the following information: “Medvedev is the first publicly supported the agreement and even mentioned FATCA, he instructed to prepare a draft agreement” to implement the provisions of U.S. law. ” Some commentators have not noticed anything. According to them, they say, is a game of words, the essence of the agreement does not change. I’m afraid that’s not true. It is because the “top” can not agree which option to choose – “symmetric” or “asymmetric”, so long in preparation of the agreement. Translated into plain language Medvedev’s words can be interpreted as follows: prepare for “asymmetrical” option.
Who benefits from this, I think, is clear. America for many of our kleptomaniacs – oligarchs and officials – has been a long time, “promised land.” There hiding untold riches, the stolen over the years of so-called reforms. Naturally, they are not declared and never accounted for. However, some estimates are available. The most famous of them belongs to “friend” Russia Zbigniew Brzezinski. This is an American politician, communicating with our scientists on the issue of missile defense, said that he “did not see a single case in which Russia could resort to its nuclear arsenal, while in U.S. banks is 500 billion dollars belonging to the Russian elite.” And then he added: “You have examined, whose elite is – yours or ours already. This elite did not link their fate with that of Russia. They money is already there, the children are already there … ”
Medvedev said before the completion of the term of the agreement remained about three weeks. So soon we will learn how Russia intends to build its relations with Uncle Sam under FATCA. This agreement will be very accurate indicator showing, whose same elite are senior officials of our government.
VY Katasonov prof., Etc. e. n., chairman of Russian Economic Society. SF Sharapova
Am I reading this right? First Russia said NO, then with the banks urging them into an IGA they said YES – as long as it was symmetrical (reciprocal). Now they’re backing off a reciprocal IGA because too many Russians are keeping unreported money in the US?
I took it to mean that the dedicated Russia-hater Zbigniew Brzezinski (the one who crows so much about luring Russia into the Afghanistan trap) threatened Russia in a military sense by way of its elites who have $500 billion in the USA plus children living there. I extrapolated that to mean Russia could be threatened to accept FATCA because the USG would freeze the Russian elite’s money and hold their children as hostages. The USA has a bribe and blackmail trick for every nation it “negotiates” with on every issue. I’m certain the US FATCA negotiating team is playing dirty with Canada too. This type of threat might crumble Medvedev but I’m not so sure it will do the same to Putin who brought many Russian oligarchs to heel when he came into power, mostly by way of tax evasion charges. But I could be wrong.
Another article on FATCA written by Valentin Katasonov in November, that I don’t think appeared on Brock:
“Many Americans are already beginning to realize what kind of a tax trap the U.S. government is trying to drive them into. And they are beginning to act. As The Wall Street Journal reported in August of this year, Americans are more and more often renouncing their U.S. citizenship or «green cards». In 2011 there were 1781 such people. And in the first half of 2013 alone, 1809 people abandoned their U.S. citizenship or permanent resident status. America is gradually losing the image of the Promised Land. Commenting on the «flight» from U.S. citizenship, experts predict that the exodus from the U.S. will accelerate in 2014, when the law on taxation of foreign accounts comes into full force…
The «flight» of banks, corporations and other legal entities from American jurisdiction is taking place even more actively. The «flight» of U.S. legal entities from Washington’s eagle eye can be seen in the opening of new companies by the stockholders of old companies in non-American jurisdictions. Then assets and all operations are transferred from the old American companies to the new non-American companies (often using various «grey» schemes). As for the old American companies, they are either closed or continue to operate in a scaled-down version. The world and American media are maintaining complete silence about this consequence of the passing of FATCA. Meanwhile, the «flight» of American business from the country could have a serious negative effect on the U.S. economy.”
Also has a chart showing the declining income from US foreign assets of the last few years.
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It states: “… Americans are more and more often renouncing their U.S. citizenship or «green cards».
I really have to object to the mistake in that sentence. People who hold green cards are NOT Americans and they cannot “renounce” a green card. A green card can only be returned in exchange for an approved I-407 form. Believe me, I was never called an American during what turned out to be my entrapment years. I was called a resident alien. My dander would have really been up if someone had tried to imply that I, a Canadian, living temporarily in the USA, had somehow become an American, against my will and without my knowledge.
Remember this article from “Russia Behind The Headlines”:
“Russian premier gives Finance Ministry until Jan 20 to draft FATCA-linked agreement with U.S.
December 13, 2013 Interfax
The Russian Finance Ministry and the Central Bank have been given until January 20, 2014 to draft an agreement on bilateral cooperation to implement the U.S. Foreign Account Tax Compliance Act, which requires banks to provide the U.S. customs service with information about accounts opened by U.S. tax payers and legal entities affiliated with them.”
It is now January 21, 2014 in Moscow and there have been no published reports on a US-Russia FATCA agreement.
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Russia to discuss IGA with the U.S.
Thanks bubblebustin for the link. Below are translated details from Russian news media:
“Bilateral” jumps out at me.
It is conceivable that Russia will not genuflect at the FATCA altar but rather enter into the negotiations eye to eye with the Obama administration. In the fall of 2013 the Russian foreign ministry’s position was to set up a parallel agreement that did not mention the word FATCA:
Also this Jan 2013 Moscow Times article describes how Russia unilaterally abrogated an anti-crime IGA with the US. IGAs are not treaties:
Sometimes I think that when a government says “we are in talks with the US” what they mean is “we are using stall tactics until this all blows up in the US’ face”…that’s what I hope anyway!
Today’s Vedomosti.ru has a lengthy interview with Sergei Shatalov, Russian Deputy Minister of Finance. I located one relevant discussion on FATCA, which states that Russia will try to reach a bilateral agreement by this summer:
Vedomosti: “The government has already decided on the actual accession to U.S. law FATCA (Requiring banks to other countries to provide information on the U.S. American taxpayers)? Do not hurt execute U.S. laws?”
Shatalov: “We continue to negotiate with the United States, constructive dialogue that gives hope for their completion by the summer. The result should be no accession of Russia to U.S. law and the agreement on the exchange of information on a bilateral basis. We believe that such an exchange will be carried out by the tax authorities, banks will be spared from having to provide information on their own IRS. In the future, this model can be extended to automatic exchange of information between the parties to the Convention on mutual assistance in tax matters.”
Original interview in Russian:
“The New American” carries an article today on the status of FATCA IGA negotiations with Russia. It is written by Alex Newman who has produced several articles on FATCA for this magazine:
According to a Banki.ru article dated Feb 26, 2014, Russia and US negotiators have agreed on a draft FATCA IGA:
“Russia and the United States have agreed upon a draft law on bilateral interaction to execute provisions of the Foreign Account Tax Compliance Act (FATCA), Ilya Trunin, head of the Finance Ministry’s Department of Fiscal and Customs Tariff Policy, told journalists.
FATCA, which will take effect for Russia as of July 1, 2014, is designed to cut fiscal losses of the United States because of offshore areas that Americans use not to pay taxes. The law demands foreign banks to provide info on accounts held by American clients to the US Internal Revenue Service.
“We discussed the model of a treaty that is called the mutual exchange of information. Under this treaty if Russian banks are obliged through the Federal Tax Service (FTS) to provide fiscal data to the US authorities about American tax residents and their accounts, so the Americans will also take obligations to provide Russia with data on Russian accounts held in the US and about parameters of these accounts,” the official said.
The document, according to Trunin, was agreed upon and the Russian government will decide whether or not to sign it. ”
Excerpt from a translated article in today’s Vedomosti.ru called “U.S. considers sanctions against Russia”:
“And financial …
Following the war the U.S. is preparing economic sanctions. U.S. Secretary of State, John Kerry, who flew yesterday in Kiev, Russia has threatened economic isolation if it decides to escalate the conflict in the Crimea. A source in the delegation Kerry said that sanctions may be introduced as early as this week. Earlier, Chairman of the Subcommittee on European Affairs in the U.S. Senate Chris Murphy said that the Senate may impose sanctions against Russian banks, called on the administration to freeze the assets of Russian public institutions and private investors as well as to introduce visa restrictions for Russian citizens.
The U.S. has other leverage over Russia, a federal official said one of them – the American law FATCA (Foreign Account Tax Compliance Act). This law requires banks and financial institutions worldwide with March 31, 2015 to supply the U.S. Internal Revenue Service (IRS) information on the operations of U.S. customers. There is an alternative – to sign an international agreement with the U.S., and then transmit the information to the national IRS tax authority. This was the case, for example, the UK, Germany, Ireland, Japan, Spain, Switzerland. Along this path is going to go, and Russia, a draft agreement was prepared last summer. A few days ago the first Deputy Prime Minister Igor Shuvalov said that the document is likely to be signed by the Ministry of Finance in July.
Negotiations should not be delayed, said officer of the government: “But now everything is possible.” A federal official said another logical if the U.S. will sign an agreement to tighten.
If agreement is not signed before July 1, then payments to the Russian banks and financial organizations of all passive income from U.S. assets will be held 30% tax (Now the withholding tax in the U.S. – 10% on dividends and 0% interest). And in 2017 – with the proceeds from the sale of shares or bonds of U.S. companies, as well as “Transit fees”. Tax will hold not only American, but also any banks that joined the FATCA. Bankers feared that participants FATCA will hold a penalty to all payments as it is difficult to understand the nature of the operation, or even close the correspondent accounts of small banks. The same problems can occur and brokers.
Without an agreement banks will have themselves to conclude an agreement before July 1 with the IRS. You need to register on the IRS website or by mail. Without the agreement with the IRS bank threaten all sanctions FATCA, warns the head of the group in the field of compliance KPMG Dmitry Chistov (See box). He recommends that banks begin now to prepare for FATCA, and the registration and agreement – a side issue: these procedures will not take much time. Some banks have already registered, knows chairman “MDM Bank” Oleg V’yugin . The fact that Russian banks are already registered, known and finishing with the Russian “daughters” of foreign banks do this automatically headquarters.
There is only one conflict with Russian law – forced the closure of the accounts of customers who refuse to grant permission for disclosure IRS. But such objectors are unlikely to appear or problem will be solved by an intergovernmental agreement, believes clean. FATCA for direct use of sanctions will not, I’m sure it all depends on Russia.”
Note the part “a draft agreement was prepared last summer. A few days ago the first Deputy Prime Minister Igor Shuvalov said that the document is likely to be signed by the Ministry of Finance in July.”
Time will tell whether Russia obtains a FATCA agreement with reciprocity or whether it gives up some of its sovereignty due to US threats.
Excerpt from an Vedomosti.ru article today called: “В Европе у банков тайны нет” (In Europe, banks have no secrets):
“Russia has not signed the agreement, two federal officials told “Vedomosti”, and due to the Crimean crisis signing may be delayed. If IGA is not signed before July 1, then payments to Russian banks and financial institutions of any passive income from US assets will be subject to a 30 % withholding tax. And in 2017, proceeds from the sale of shares or bonds of US companies with be withheld as well as “transit fees”. “
Translated excerpt from a Vedomosti.ru article dated March 21, 2014 called: “Тосунян: Действия MasterСard и Visa не должны сказаться на переговорах с США по FATCA” (Tosunjan: MasterCard and Visa actions should not affect negotiations with the US on FATCA):
“In late February, the head of the tax department of the Ministry of Finance of the Russian Ilya Trunin announced that Russia and the United States previously agreed on a draft agreement on the mutual exchange of information within the framework of the law FATCA. “We discussed a model agreement on mutual exchange of information under this agreement as Russian banks will be required by the Internal Revenue Service to provide information to the American side of the US tax residents and their accounts , and the Americans will commit to provide data on Russian accounts in the US and rates on these accounts, “- he said. At that time, the Russian government has not yet taken a decision on whether to enter into such an agreement. According Trunina , FATCA agreement can be signed before July 1, 2014.”
Comment: as indicated here and elsewhere, it appears that Russia has written reciprocity into the proposed IGA. In my opinion, the Obama administration would likely have a difficult signing such an agreement as it would commit the US to delivering data to Russia that it does not have the legal right to do.
RIA Novosti: Moscow, Washington Will Not Postpone FATCA Agreement – Russian Finance Minister
Hmmmm. Doesn’t seem to make sense given the current political situation.
Translated below is Vedomosti.ru article dated March 31, 2014 called: “США могут отказаться подписывать с Россией соглашение о FATCA” (U.S. may refuse to sign an agreement with Russia on FATCA):
Comment: Russia is demanding reciprocity in the draft agreement which obviously the US Treasury does not the authority to grant.
“U.S. may refuse to sign an agreement with Russia on FATCA
Russia is ready to join the U.S. law on the exchange of tax information. But the U.S. may refuse as a punishment for Crimea
Last week, the Finance Ministry sent the government a draft directive on signing the agreement with the U.S. on the exchange of information, said two federal officials. Such an order was given to the Ministry of Finance at a meeting with First Deputy Prime Minister Igor Shuvalov said his representative, after the approval of the government will give directives to the Ministry sanctioned the negotiations with the U.S. . There are only technical obstacles, such as transfer agreements, says official familiar with the position of the Ministry of Finance. A ministry spokesman declined to comment.
In fact, we are talking about Russia’s accession to U.S. law FATCA (Foreign Account Tax Compliance Act). Requiring banks and financial institutions of all countries by March 31, 2015 to supply the U.S. Internal Revenue Service (IRS) information on operations of U.S. customers. If the bank does not attach to the system before July 1 this year, it faces sanctions: a payment to its address of any passive income from U.S. assets will be deducted 30 % tax (currently tax at source in the U.S. – 10% on dividends and 0% for percent). And in 2017 – with the proceeds from the sale of shares or bonds of U.S. companies, as well as ” transit fees “.
But the foreign bank can transmit information not directly but through the local tax authorities. To do this, the government should sign an agreement with the United States. This option was chosen, for example, by the UK and Germany.
Russia was going to conclude an agreement last summer but negotiations dragged on. It was decided not to sign an agreement on FATCA but a mutual exchange of information ( i.e., the United States is committed to providing information on Russian taxpayers). Draft agreement reproduces almost U.S. law, although FATCA it is not explicitly mentioned.
But now there may be a new unknown obstacle, which will determine whether the United States to sign an agreement, says an official involved in the discussion of the project: “As long as the signals from the United States have been reported, neither good nor bad .” Washington could delay the signing, the Ministry of Finance officials previously feared: it can become an informal sanction for the Crimea annexation.
Damage to the financial system can be overwhelming. 30% tax on payments to Russian banks and financial companies should hold not only American, but also any banks that joined the FATCA, including European. Also there is a danger that banks will close correspondent accounts of those who have not joined the FATCA, then may lock dollar payments feared Russian banker.
U.S. Treasury refused to comment on the talks. Last week, Finance Minister Anton Siluanov reassured: the worsening of relations does not lead to the transfer agreement not being signed – but officials will do everything so that banks can provide information to IRS.
The government is preparing a fallback really tells White House staffer – to allow banks to transfer information IRS directly. But you have to change Russian law.
By July 1, banks may have to choose: to fulfill the Russian law and incur losses or American, breaking Russian law, laments the director ‘s compliance PSB Svetlana Yermolayeva. Legal risks arise due to retention and a 30% tax on income customers who have been recognized by the Americans, explains Yermolayeva, Russian law does not provide for retention of direct customer funds on the grounds set forth in FATCA.
Possible to meet the requirement of bank secrecy, even if not governed by law, according to the manager of another bank : finding American client to get his written consent, but better is directive for the transfer of information to the IRS. Technically it is possible, it is reassuring: system identification and interaction with clients been established in many banks.
In the performance of FATCA banks will face many other problems, warns the head of the group in the field of Compliance KPMG Dmitry Chistov. U.S. demand to disclose the accounts not only U.S. customers, but also the companies of which they are beneficiaries. At the same time under Russian law the beneficiary – the owner of not less than 25 % stake, and on FATCA – 0 or 10 % depending on the type of company, explains Chistov.
To start an independent exchange with the United States on July 1, banks should have until April 25 to register online IRS, obtain an identification code and enter into a contract with the IRS, reminds Chistov. Many from last year started to be registered at your own risk, employee knows Russian bank. “Given the political situation, it is possible that the agreement is not signed, and we can not wait that long – it is necessary to prepare for the execution of FATCA», – says the banker.”
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According to a Princeton study, the US is an oligarchy:
The study also found: “When a majority of citizens disagrees with economic elites and/or with organized interests, they generally lose.”
That’s not very encouraging…
@bubblebustin, thanks for;
“The US is an oligarchy.” !!!
…..”…….The famous French economist Gustave de Molinari said in 1904:
“These associations, or political parties, are actual armies which have been trained to pursue power. … It is nothing to a politician that the result is increased charges and heavier drains on the vital energy of the people. The unceasing competition under which they labor, first to secure office and next to maintain their position, compels them to make party interest their sole care, and they are in no position to consider whether this personal and immediate interest is in harmony with the general and permanent good of the nation.”
Molinari commented about the failure of the press to expose this “abuse of the sovereign power to the detriment of those who consume those services.”
He stated, “For the press has found it more profitable to place its voice at the disposal of class or party interests and to echo the passions of the moment rather than to sound the voice of reason. Nowhere has it been known to act as a curb on the governmental tendency to increase national expenditure.” http://www.moneynews.com/Kleinfeld/tax-haven-US-investor/2013/07/08/id/513734/
So, the US is an oligarchy, AS WELL AS what we already knew, that the US is the WORLD’S LARGEST TAX HAVEN:
Ex. http://www.tucsonsentinel.com/nationworld/report/051811_irs_cheats_latinamerica/us-and-its-banks-called-worlds-biggest-tax-haven/ http://www.publicintegrity.org/2011/05/18/4638/irs-crusades-against-americans-hiding-money-offshore-latin-american-tax-cheats-flock http://www.cbsnews.com/news/cheat-street-how-us-banks-help-foreigners-dodge-their-taxes/ http://www.cbsnews.com/news/how-wall-street-banks-help-tyrants-loot-their-countries/ http://www.thebureauinvestigates.com http://posey.house.gov/uploadedfiles/irs-delegationletter-march3-2011.pdf /2012/07/06/delaware-the-us-tax-haven-of-choice/ http://www.lectlaw.com/filesh/bbg33.htm https://blogs.law.harvard.edu/corpgov/2011/02/18/exploring-the-role-delaware-plays-as-a-domestic-tax-haven/ http://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Events/conferences/symposia/2011/dyreng.pdf.