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There’s small choice in rotten apples
With the exception of calling a depression a recession, and missing the pollution of private enterprise by government red tape regulations, subsidies and taxes, this Swiss banker provides much food for thought.
He compares the issue of rational resource allocation versus special interest taxes to one baker in Sicily who has to pay protection, and another who does not because he knows The Family.
The Swiss banker cites a 1997 double taxation agreement between neutral Switzerland and the US. He feels it heralded the ultimate compromise of Swiss banking privacy.
(We saw it coming when Credit Suisse, UBS et al joined American investment banking subject to American laws.)
Perhaps it began with the double taxation agreement of 1951, with death estate taxes of 45% and higher.
The Swiss banker observes there is a remarkable lack of double taxation agreements with the countries of Latin America, Asia and the Middle East.
No wonder their economies were booming until America could no longer afford to import so much and began to raise taxes to pay for decades of prodigal sons.
The Swiss banker points out the USA is unique in seeking universal taxation of its subjects (once citizens) anywhere in the world, and of anyone else in the world holding or owning US assets.
He points out the taxation of US Persons became blurred with the Substantial Physical Presence Test, which kicks in after 31 days.
He finds the complexity of tax laws set a trap to more easily trigger mandatory 30% withholding.
He says the USA is increasingly treating offshore companies, institutions and trusts as look-through entities to gain access to taxes on their assets by pressuring the custodians, estates and executors.
He further opines the 0 administration is working on further unpleasant surprises:
