In decades past, it was possible to make a good middle class living without having gone to college or just by keeping a good job. Unfortunately, all of that is gone forever.
There are many reasons why that is the case and none of them are encouraging:
- The rise of mass tax evasion by the rich
- The purchase of mass media by rich tycoons–which will manipulate public opinion from now on.
- The disappearance of manufacturing
- The demise of Unions
- Globalization and worldwide competition.
- The rise of knowledge workers.
All of these things are working against the interests of the poor and in favor of the interests of the rich. There are few things that the non-rich or their children can do except lower their expenses, get as much education as they can, avoid unhealthy habits and spend every free minute helping themselves to move into the few remaining avenues of safety–which means being a knowledge worker.
One of the realities understood by students of Capitalism such as Karl Marx is that workers–not owning their own “means of production” (a factory)–have few advantages under Capitalism. The globalization cat is out of the bag. We will never undo that damage. So, what is left is to find something that Americans can do that allows them to fight back. The best tactic is to become a knowledge worker. What is that? A knowledge worker is someone who–unlike the factory worker–owns their own means of production–their brain. If their employer treats them badly, they can leave their job and take their brainpower with them. They take their means of solving technical problem with them. That is their best weapon.
So, parents, you should lower your expenses and spend every free penny you have not in buying a big flat screen TV or in buying gold chains. Instead, you should plunge every penny you have, every minute of your free time, every iota of your energy into educating yourself, your children, your friends and anyone you care about. That is your only hope.
Unlike being a factory worker, you will own the skills you gain and will carry your tools with you between your ears. There are many of us on the left who despise the way the right has manipulated Congress and the Media into carrying water for their point of view. Even if we undo that damage, as is intended by the recently passed FATCA law and by the law “S. 1533: Stop Tax Haven Abuse”, the super wealthy have already thrown away their allegiance to the United States. They have already moved their money out of the United States. If the United States is strong enough to toughen up our laws, they will leave — and good riddance. They will at least have to face the rest of the world that is also slowly turning the screws on them, making it harder and harder to evade taxes.
But the problem is there are so many new secrecy jurisdictions coming on line, in a race to the bottom, that it’s already too late. The only thing that the remaining Americans can do is vote for politicians who will represent the rest of us and to pick up the skillsets that will defend ourselves and our loved ones in this new, global environment. Though many of us wish it were different, the evidence is too widespread that it’s already too late to undo the damage of globalization and of rampant tax evasion. All that is left is to stop bringing a knife to a gunfight. Lead your family into the last safe harbor: become a knowledge worker. Today, the 113th Congress released the text for the following bill that intends to close the barn door after the horse has already run far, far away: S. 1533: Stop Tax Haven Abuse:
“To end offshore tax abuses, to preserve our national defense and protect American families and businesses from devastating cuts, and for other purposes.”
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled:
SECTION 1. SHORT TITLE, ETC.
(a) Short Title- This Act may be cited as the ?Stop Tax Haven Abuse Act?. (b) Amendment of 1986 Code- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of Contents- The table of contents of this Act is as follows: Sec. 1. Short title, etc.
TITLE I–DETERRING THE USE OF TAX HAVENS FOR TAX EVASION
Sec. 101. Authorizing special measures against foreign jurisdictions, financial institutions, and others that significantly impede United States tax enforcement. Sec. 102. Strengthening the Foreign Account Tax Compliance Act (FATCA). Sec. 103. Treatment of foreign corporations managed and controlled in the United States as domestic corporations. Sec. 104. Reporting United States beneficial owners of foreign owned financial accounts. Sec. 105. Swap payments made from the United States to persons offshore.
TITLE II–OTHER MEASURES TO COMBAT TAX HAVEN ABUSES
Sec. 201. Country-by-country reporting. Sec. 202. Penalty for failing to disclose offshore holdings. Sec. 203. Deadline for anti-money laundering rule for investment advisers. Sec. 204. Anti-money laundering requirements for formation agents. Sec. 205. Strengthening John Doe summons proceedings. Sec. 206. Improving enforcement of foreign financial account reporting.
TITLE III–ENDING CORPORATE OFFSHORE TAX AVOIDANCE
Sec. 301. Allocation of expenses and taxes on basis of repatriation of foreign income. Sec. 302. Excess income from transfers of intangibles to low-taxed affiliates treated as subpart F income. Sec. 303. Limitations on income shifting through intangible property transfers. Sec. 304. Repeal of check-the-box rules for certain foreign entities and CFC look-thru rules. Sec. 305. Prohibition on offshore loan abuse.
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Edited/Published by: SB
