Two interesting items crossed my radar today.
First, the Schoolhouse Rock version of “I’m Just a Bill”, courtesy of Mark Fiore:
And here’s a story on just how frickin’ easy it is to set up an offshore corporation. Easiest place to do it without filing any paperwork? The United States.
It’s amazing how this narrative starts in the wrong place and grows and grows: opening a bank account in the U.S. is a sign of responsibly managing your personal finances. Opening one in any other country is “stashing” money in “secret places.” Same with incorporating – just the act of creating a company *MUST* be a quasi-illegal act, and the easier/cheaper it is, the more evidence we have of corporate shenanigans. And if you do it outside of the US? Well…you might as well legally change your name to Benedict Arnold while you’re at it, you unpatriotic, traitorous fat-cat…
But we leave aside the obvious contradictions: the fact that it’s cheap and easy means it’s *NOT* the providence of Mitt Romney and his minions – anyone can do it if they so choose. And note that the U.S. feels the need to implement FATCA to track U.S. citizens operating abroad and/or foreigners trading in US financial instruments. Other countries do less checking and require less paperwork/taxes. So who would *YOU* choose to do business with?
1) I don’t think I’ve said that all overseas accounts are “stashing” “secret” money. I’ve said that it’s hypocritical that we make laws against the movement of people and information across borders, but we promote the movement of money at lightspeed. But that’s another argument.
2) I’d be fine with legitimate uses of overseas accounts, but afaik, there are two reasons to do this: a) when you want your reserves denominated where you need them, and b) when you want to skirt laws where the reserves would otherwise be. I.e., I’m interested in getting a European account next year so I can play poker in Europe more conveniently, and play poker online at all.
3) As to the argument that avoiding taxes is legitimate: sure, it’s legal, but it’s also demonstrating that the system is set up so the people with the most lawyers and lobbyists win.
4) Point 3 obviates the ease of setting up accounts for everyone: sure, I can set up an account anywhere I damn well please. But unless I have a team of CPAs working for me, I sure as hell can’t take advantage of the tax and other financial loopholes that those provide.
5) I don’t know what FATCA is, but it sounds like a delicious chocolate pastry.
6) As for ease of filing/lack of identification, that’s a whole ‘nother argument, and I’d probably be in favor of some of yours.
Or to sum up points 1 and 6: I don’t believe money is speech, but I wish to hell that speech were as free as money is.