Common Knowledge tells you when a moment of crisis arises, the rich is the one who makes the most money, they are the ones holding inventories of any kind, any inflationary move would make them richer and when it comes to speculate, they have the resources and the information to make the most of it. In conclusion, big money never loses.
No wonder a group of millionaires in different countries from Italy to Germany, U.S.A to France; are coming forward with initiatives to raise taxes to the rich in order to “contribute” with fiscal deficit. It sounds morbid having to wait for them to offer the money instead of being already taxed by law.
Apparently, based in a Boston Consulting Group study, patrimonial taxes throughout OCDE are indeed very low with the U.S. at 12.1% in tax average per fiscal entry, France with 7,8%, Italy 4,3% and Germany only 2,3%. Considering the average European citizen is being tax 30% o more, with patrimonial assets represented by one house.
The irony of situation is the wide publized PR campaign starting with the Italian super rich led by Luca di Montezemolo vowing to buy Italian bonds if the pressure persists. How much are they willing to contribute “voluntarily”? Let´s speculate 10 to 20 billion dollars that would be around 1% in comparison with the 1, 2 trillion of Italy sovereign debt.
As for their German counterpart the story is similar, with expectation a bit higher as far as collection purposes with numbers around 100 billion dollars to relieve the public coffers. Then my next question it would be, for how long this initiative would prolong? Knowing that recovery is a long and painful process.
Underlying is the legislative failure from congress and similar institutions around the globe, for not being capable of demanding to the rich bigger contributions as they are the biggest beneficiaries of most governmental subsidies. No wonder the streets around the world are getting filled of discontent masses asking for better government.
The special spotlight is taken by President Obama, who in 2008 with both houses under democratic control could not produce efficient policies that would prevent republicans to block any agreement in raising the cap on fiscal spending; as a consequence of such poor strategy debt rating was downgraded, affecting the sum of money pay in interests to speculators.
In the same token European leaders have been waiting for private lenders to share the losses in debt related cases in Greece, Portugal and Ireland. However, the same altruistic spirit shown by some business leaders in Europe has not spoken up in paying for the mismanagement and corruption while assigning contracts to big business in peripheral countries.
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