Friday, April 10, 2009

The Tax Thing

A recent discussion about taxes, and how many middle to upper-middle income folks have paid in rather than receive a refund, led to an expounding among some friends. The notion that the rich are going to bloody-well-pay is such a silly one. Wealthy people have money because they know how to keep it.

I read an article in the Wall Street Journal recently on just this topic. It said:

...the global rich shuffled more money last year than at any period in the history of private banking...

It estimates that they moved $1 trillion from one manager to another. Some moved the money because they were upset over losses and decided they weren’t going to take it anymore.

Recently Ahmed dragged me off to our accountant for the yearly beating. A great deal of the family money has been moved, recently, overseas. It will stay there. Ahmed now works only 2 to 3 days a week in the US. He conducts a funded study in Canada, where he spends one week a month. The study is not a profit venture, so there is no income from it. But there are also absolutely no benefits to the US economy from it, either. And he has moved nearly all his investment activity back to England, where it is managed by his brother.

Consider, as well, the fact that we won't be giving generously within the US any longer because donations are now penalized ridiculously.

Those laboring under the delusion that Obama is helping the poor are fiscally clueless. The wealthy know how to hang on to wealth. Who pays their share when they move it off-shore?

Got a mirror?

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