tax

The IMF world bank is proposing a ten per cent wealth tax on all households in the UK and the rest of the Eurozone.

What this would mean is men and women having to pay a levy on the total value of their accumulated assets, including their properties, cash, bank deposits, money funds, and savings in insurance and pension plans.

The amount payable would also depend upon whether they have any businesses, personal trusts, corporate funds, earnings, loans and mortgages.

All of these things are already taxed – so a wealth tax would represent an additional tax on the same assets. In other words, we would be taxed twice.

The IMF, under the leadership of Christine Lagarde says that imposing such a tax would help to correct the levels of debt in developed nations, including the UK and countries across the EU.

This idea is also being pushed by the EU. A paper published by the IMF, says: “Provided the households – or at least some of them – do not believe in the one-off nature of the wealth levy, the “non-believers” anticipate that the debt level can rise again by 20 pp and that fiscal policy would, then, subsequently ensure the reduction of this debt by imposing another wealth levy. The tax rate on wealth applied in this case is high enough such that the debt would be repaid at the expected value.”

The paper therefore recommends that in order for the tax to be effective, it should be introduced unexpectedly and promoted as a one-off tax only.

This is exactly what happened in Cyprus when people woke up to find they were unable to access their money from the banks.

A deal between the EU and euro partners subsequently resulted in every single man and woman paying a 10% ‘tax’ on their savings to bail out the banks.

The news came unexpectedly and was introduced as a ‘one-off’, in much the same way as the IMF is now recommending for other countries across the EU.

Another thing they did was at first the citizens of Cyprus were told they may lose all or most of their money. Everyone then breathed a sigh of relief when the tax turned out to be just ten per cent.

Now, this paper, suggests that perhaps that had been the plan all along. Of course, if people do not lose as much as they are first told they are going to, they are more likely to accept it. The oldest trick in the book – leak news of an even worse scenario, so people will accept whatever you already had in mind, more easily.

In Cyprus, it is important to remember the tax was a 10% tax on savings. A wealth tax would be infinitely greater – as it would also include a tax on your property and other assets.

However, let’s be very clear here. Despite the misleading statements made by other news outlets on this tax, this will NOT just be a tax on the rich. The IMF paper is very clear on that.

The tax will be on ALL households in the Eurozone. There is no discussion whatsoever of reforming the system. Rather than reforming an unsustainable fiat system that simply keeps printing more money with nothing to back it up, the IMF is advising government’s to introduce more taxes. This in itself is an admission that the previous taxes didn’t work.

When the income tax was first introduced, it was promoted as a one-off, with the usual suggestions that only the very wealthy would have to be concerned by it.

We all know how that turned out. What is worrying, is that this new tax is being introduced in the same way.

The IMF is also proposing that it is taken by force – in other words, you will not realise it is gone, until the money has been deducted from your account. The IMF paper claims this is necessary to prevent people from moving their money or their assets elsewhere.

Furthermore, the IMF also suggested expropriating pension funds. This means that, you can suddenly wake up and find your future is now applied as a contribution to government.

The trick is to get you, the ordinary man and woman, to pay attention to the multimillionaires so that you do not feel the political hand in your wallet.

In effect, this new tax would represent a government raid on the accumulated savings and assets of its citizens.

It means that everything you have worked so hard to gain, could be snatched away at the whim of the government.

The IMF also suggests that this “one-off” tax should be reintroduced at least once every 25 years to ensure the economy stays in good order.

The paper states: “The expected probability-weighted tax rate is calculated as follows. Households expect a wealth levy to be imposed if the debt ratio climbs again by 20 pp. The probability of this occurring is calculated in line with the theory on fiscal limits (see Corsetti et al, 2013). This amounts to an annual probability of 4%. Therefore, this event is expected
to occur around once every 25 years.”

You can find the IMF paper on this HERE.

Other IMF schemes

In June this year, the IMF came up with another scheme. If you bought a two-year bond, in which you are meant to receive all of the money you invested in that bond, plus the total interest payable, when it reaches maturity, here is what they will do: extend the maturity on that bond.

In other words, the two year bond, now becomes a 20 year bond. So you do not get your money for another 20 years.

This means you could buy a 30-day bond in the middle of a crisis and suddenly find under the IMF, that 30 day note is converted to 30 year bond at the same rate.

In other words, they have not ‘defaulted or neglected to pay you, they have simply moved the goal posts around, so you do not in practice, get your money. And you pay more taxes.

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16 Comments

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  4. Allan Benfield says:
    0
    Please do NOT say BRIT…. We are British.
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  6. 12
    Wealth tax what a joke, most likely the people they intend screwing are of course the ordinary men and women who are already overburdened, paying off gamblers and bankers debts.
  7. 25
    Now be realistic here, these criminals have been living of the back of everybody like parasites for a very long time, do you really think they ever intend to stop? It’s currently estimated that the working man already parts with 83% of his gross earning in taxation. Are you surprised these parasites want the other 17%? They see you as a slave to serve and provide for their lavish lifesyles, don’t you people get that bit, is it really that difficult to understand from where you are? So long as the supper market has cheap bear and fags and the kids have the play station and there 500 channels of crap on the telly, what do the voting public really care how they get robbed?
    • DAI SORRENTINO says:
      6
      you got it nail on the head 99 percent of joe public don,t know whats going on around therefore don,t care whats going to happen just take it up the ass for a week and then its forgotten once its not on the front cover of whatever cheap nasty daily paper they read…..
  8. 1
    Is the UK even in the Eurozone?
    • 5
      No, the UK does not come under the greater banner of the Eurozone but it IS an EU member state. Although the wording of this article is a bit unclear, rest assured anything introduced in the EU is likely to affect the UK. After reading the IMF paper in its entirety (I study economics at LSE) I have one criticism of this article. It actually does a disservice in that the wording of it grossly understates the situation. Nowhere does the paper say that it will only affect the Eurozone. What it actually says is that the tax will START in the Eurozone as an introduction and then be adopted elsewhere. I’m not sure how much you understand about the world bank (aka IMF) but what you ought to know is that it does not just have influence over EU countries. Did you know it also has influence over MOST countries in the world , including African nations- which is why so many are in debt. In debt to whom? Why, the world bank ofcourse. That is why it is known as the world bank and not the EU bank. If you actually read the paper it specifies western nations – so I’m not sure why this paper is calling it an EU tax. It does not just specify the Eurozone or EU member states, it says ALL western nation states – it is very clear on that. Not sure why this paper and some others who have previously reported on the proposal claims it is only EU countries. However what this paper DOES correctly say is that the same or similar thing happened in Cyprus. Cyprus by the way is not in the Eurozone. Greece is, Cyprus is not. Cyprus, like the UK, is an EU member state and STILL came under the boot of the IMF – as most other countries do. The scary thing is most people are unaware of just how much power the IMF really have. Read the IMF paper in full (I think the article contains a hyperlink somewhere). Read it and weep.
  9. 1
    “The IMF world bank is proposing a ten per cent wealth tax on all households in the UK and the rest of the Eurozone.” This should say “the UK and the Eurozone”, as the UK (thankfully) is not in the stupid Eurozone.
    • 3
      No, the UK does not come under the greater banner of the Eurozone but it IS an EU member state. Although the wording of this article is a bit unclear, rest assured anything introduced in the EU is likely to affect the UK. After reading the IMF paper in its entirety (I study economics at LSE) I have one criticism of this article. It actually does a disservice in that the wording of it grossly understates the situation. Nowhere does the paper say that it will only affect the Eurozone. What it actually says is that the tax will START in the Eurozone as an introduction and then be adopted elsewhere. I’m not sure how much you understand about the world bank (aka IMF) but what you ought to know is that it does not just have influence over EU countries. Did you know it also has influence over MOST countries in the world , including African nations- which is why so many are in debt. In debt to whom? Why, the world bank ofcourse. That is why it is known as the world bank and not the EU bank. If you actually read the paper it specifies western nations – so I’m not sure why this paper is calling it an EU tax. It does not just specify the Eurozone or EU member states, it says ALL western nation states – it is very clear on that. Not sure why this paper and some others who have previously reported on the proposal claims it is only EU countries. However what this paper DOES correctly say is that the same or similar thing happened in Cyprus. Cyprus by the way is not in the Eurozone. Greece is, Cyprus is not. Cyprus, like the UK, is an EU member state and STILL came under the boot of the IMF – as most other countries do. The scary thing is most people are unaware of just how much power the IMF really have. Read the IMF paper in full (I think the article contains a hyperlink somewhere). Read it and weep.
  10. -6
    How about providing a source or a link for this outlandish article? Where can I read this IMF “paper”?
    • 10
      Hi JJ You must not have read the article properly. The hyperlink is just above the section where it says other IMF schemes. “The paper states: ‘The expected probability-weighted tax rate is calculated as follows. Households expect a wealth levy to be imposed if the debt ratio climbs again by 20 pp. The probability of this occurring is calculated in line with the theory on fiscal limits (see Corsetti et al, 2013). This amounts to an annual probability of 4%. Therefore, this event is expected to occur around once every 25 years.’ You can find the IMF paper on this HERE.” If you click on the ‘HERE’ bit, it takes you straight to the article – which we have also quoted directly from, hence the quotation marks. But to make things easier for you, I have included a link in this reply. http://www.bundesbank.de/Redaktion/EN/Downloads/Publications/Discussion_Paper_1/2014/2014_10_29_dkp_29.pdf?__blob=publicationFile So not quite so outlandish after all. It is best to read the entire article before forming judgments.

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