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#211499 - 30/03/2004 11:45 Anyone doing offshore banking? *DELETED*
darwin
enthusiast

Registered: 10/01/2002
Posts: 205
Post deleted by darwin

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#211500 - 30/03/2004 13:06 Re: Anyone doing offshore banking? [Re: darwin]
siberia37
old hand

Registered: 09/01/2002
Posts: 702
Loc: Tacoma,WA
Just curious what are the benefits that you have in mind? Are interest rates much higher overseas? Are you looking to take advantage of the falling US Dollar? Or do you just want a stash in case you travel overseas?

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#211501 - 30/03/2004 13:33 Re: Anyone doing offshore banking? [Re: siberia37]
darwin
enthusiast

Registered: 10/01/2002
Posts: 205
well, lets pretend that i've been doing a lot of under the table consulting (6 figures) and i'd rather not let uncle sam take 40+% of it away from me. my bank account has enough and i was told if i deposit much more that i would surely be audited.
Most swiss banks will link up a debit/atm card so you can spend whenever you want. I've searched google for offshore banking but want to hear from people who have experience.

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#211502 - 30/03/2004 13:41 Re: Anyone doing offshore banking? [Re: darwin]
siberia37
old hand

Registered: 09/01/2002
Posts: 702
Loc: Tacoma,WA
In reply to:


well, lets pretend that i've been doing a lot of under the table consulting (6 figures) and i'd rather not let uncle sam take 40+% of it away from me. my bank account has enough and i was told if i deposit much more that i would surely be audited.




You may get audited anyways and if you do the IRS will certainly notice you are spending more money then you claim to be taking in (unless you just plan to sit on it all)- then you will wish you just paid the taxes.

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#211503 - 30/03/2004 14:13 Re: Anyone doing offshore banking? [Re: darwin]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
If you don't want to pay your taxes, you need to move to another country and renounce your citizenship.
_________________________
Bitt Faulk

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#211504 - 30/03/2004 14:29 Re: Anyone doing offshore banking? [Re: darwin]
trs24
old hand

Registered: 20/03/2002
Posts: 729
Loc: Palo Alto, CA
Offshore tax evasion is not legal. And more than likely your account information would end up being shared with the IRS, anyway - making you liable for your unpaid taxes plus interest and penalties, if not prosecution.

Here's a link to the IRS Offshore Voluntary Compliance Initiative for a little info on what has happened to people participating in what you're describing.

- trs
_________________________
- trs

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#211505 - 30/03/2004 14:48 Re: Anyone doing offshore banking? [Re: darwin]
Redrum
old hand

Registered: 17/01/2003
Posts: 998
Gambling, drugs or women are the three best ways to take care of excess cash flow problems.

However they may leave you broke, addicted and with VD.

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#211506 - 30/03/2004 14:55 Re: Anyone doing offshore banking? [Re: darwin]
genixia
Carpal Tunnel

Registered: 08/02/2002
Posts: 3411
Hmm. You've got the vote but don't pay your taxes. I pay my taxes but don't have the vote. The World is definitely screwed up.
_________________________
Mk2a 60GB Blue. Serial 030102962 sig.mp3: File Format not Valid.

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#211507 - 30/03/2004 14:57 Re: Anyone doing offshore banking? [Re: genixia]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
No taxation without representation!
_________________________
Bitt Faulk

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#211508 - 30/03/2004 15:02 Re: Anyone doing offshore banking? [Re: darwin]
tfabris
carpal tunnel

Registered: 20/12/1999
Posts: 31573
Loc: Seattle, WA
I offer this in an effort to steer this conversation away from the predictable place and more towards an interesting discussion of how money movement is tracked.
_________________________
Tony Fabris

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#211509 - 30/03/2004 15:23 Re: Anyone doing offshore banking? [Re: wfaulk]
genixia
Carpal Tunnel

Registered: 08/02/2002
Posts: 3411
I think that I should get Darwin's vote
_________________________
Mk2a 60GB Blue. Serial 030102962 sig.mp3: File Format not Valid.

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#211510 - 30/03/2004 15:28 Re: Anyone doing offshore banking? [Re: wfaulk]
mschrag
pooh-bah

Registered: 09/09/2000
Posts: 2303
Loc: Richmond, VA
I second this. You enjoy the benefits of being in this country, but you prefer to ignore your responsibilities. That's shameful.

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#211511 - 30/03/2004 16:29 Re: Anyone doing offshore banking? [Re: darwin]
RobotCaleb
pooh-bah

Registered: 15/01/2002
Posts: 1866
Loc: Austin
i take offense to this
i serve in the military, and find it shameful and depressing that you would choose to do this
get off your high chair, pull your nose out of the air and pay the damn taxes like the rest of us. if you dont like it, leave my country

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#211512 - 30/03/2004 17:32 Re: Anyone doing offshore banking? *DELETED* [Re: darwin]
djc
enthusiast

Registered: 08/08/2000
Posts: 351
Loc: chicago
Hey darwin,

Hope you had your flame suit on for that one. I have to agree with those who have already b*tched you out, but I do want to give you a few things to think about before going down this road.

After a job change last year, I now work for one of the biggest banks in the US. Bank employees are specifically required to take training courses on how to spot attempts at money laundering, tax evasion, and other activities (legal or not) that could raise suspicions. In fact, the passage of the Patriot Act places a whole new set of requirements on US banking institutions regarding even relatively modest transactions. Banks are extremely eager to comply with these regulations, as there have been cases that have led to multimillion dollar penalties and criminal charges against staff who have neglected to report these types of transactions.

You may have already thought of this, but how were you planning on getting that money into your offshore account to begin with? Most likely, you'd arrange a series of wire transfers from your client's accounts to your offshore account. The client's bank must report details of the transaction (dollar amount, payer, receiving bank and account number, etc) to the feds. And, unless your account is in a "noncooperative jurisdiction" (and, no, Switzerland is not on the list), that foreign banking instituition is happy to give details regarding your offshore account ownership to the feds. They match these up, and investigate all transfers over a certain dollar amount, or series of transactions that add up to a certain dollar amount.

Why are the feds so interested? Traditionally, they've been tracing money to crack down on the drug trade, tax evasion, or other illegal activity. These days, their watching more closely than ever to try to track money that might possibly be funding so-called terrorist organizations.

The bottom line is that, unless you have a really complicated scheme in mind to illegally launder your money into that overseas account (let's call a spade a spade), you will get caught. And I guarantee you will wish that you had simply paid your taxes to begin with.

--Dan.

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#211513 - 30/03/2004 21:25 Re: Anyone doing offshore banking? [Re: Redrum]
foxtrot_xray
addict

Registered: 03/03/2002
Posts: 687
Loc: Atlanta, Georgia
In reply to:


However they may leave you broke, addicted and with VD.



What do you mean, "may"?

Me.
_________________________
Mike 'Fox' Morrey 128BPM@124MPH. Love it! 2002 BRG Mini Cooper

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#211514 - 30/03/2004 21:47 Re: Anyone doing offshore banking? [Re: darwin]
Daria
carpal tunnel

Registered: 24/01/2002
Posts: 3937
Loc: Providence, RI
2 jobs combined isn't getting me 6 figures, and I have withholding at one and am now paying a lump for the other (or I will before the 15th; I need to go back and redo one of the calculations with what are now hopefully the correct final numbers); Pardon me if I'm not feeling real sorry for you and the not wanting to pay the 40% or whatever.

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#211515 - 30/03/2004 23:28 Re: Anyone doing offshore banking? [Re: wfaulk]
hybrid8
carpal tunnel

Registered: 12/11/2001
Posts: 7738
Loc: Toronto, CANADA
Am I the only one that hoped this thread wouldn't turn into a flame against the originator? See, I have no problem with not paying taxes to the IRS. I don't live in the US. So obviously I would have no problems reading about how money is tracked (and hidden) while trying to get it to the destination.

That said there's always the matress way. Hollow matress stuffed with cash. But spending cash is not as easy as it used to be.

This probably points more to the point of what's needed in Canada and the US alike. Tax reform. You guys down in the US have it easy by comparison, so let's not even get started.

Bruno
_________________________
Bruno
Twisted Melon : Fine Mac OS Software

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#211516 - 30/03/2004 23:39 Re: Anyone doing offshore banking? [Re: hybrid8]
lectric
pooh-bah

Registered: 20/01/2002
Posts: 2085
Loc: New Orleans, LA
You guys down in the US have it easy by comparison, so let's not even get started.

Well, we have it somewhat easy compared to canadians, but only because our medical isn't rolled into our taxes. Give it a few years, they're trying to "fix" that. We'll soon be right up there with you. With crappy health care to boot.

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#211517 - 30/03/2004 23:43 Re: Anyone doing offshore banking? *DELETED* [Re: darwin]
MarkH
member

Registered: 06/04/2000
Posts: 158
Got to hand it to those Swiss bankers for marketing. In fact Switzerland for a long time has not been anything like the most secure place to stash your cash. Places like Liechtenstein, Luxembourg, and funnily enough even Belgium had much stronger secrecy laws than the Swiss.

Nonetheless, as most other answers have noted, it's all now disappeared in a haze of post-9/11 surveillance. Globally dispersed cellular terrorism, the campaign against hawala banking, coupled with the extra-territorial implications of the US Patriot Act, and to some extent Sarbanes-Oxley, mean that pretty much every country will now roll over and give up account details on request.

Only countries which explicitly reject signing up to the G7-inspired Financial Action Task Force (and their good friends the US Office of Foreign Asset Control) are likely to refuse any such requests. The countries currently in this category are: Nigeria, Zimbabwe, Cook Islands, Burma, North Korea, Indonesia, Nauru, Philippines, Cuba, Guatemala, Western Balkans, Yugoslavia, Iran, Iraq, Libya, and Sudan.

So plenty of good safe choices there as potential destinations for your hard earned cash.

Regards

Mark

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#211518 - 31/03/2004 01:17 Re: Anyone doing offshore banking? [Re: lectric]
canuckInOR
carpal tunnel

Registered: 13/02/2002
Posts: 3212
Loc: Portland, OR
You guys down in the US have it easy by comparison, so let's not even get started.
Well, we have it somewhat easy compared to canadians, but only because our medical isn't rolled into our taxes.
Exactly. Once you figure in the cost of medical insurance, and all the rest of the privatized costs that Canadian taxes pay for, we're no better off down here, than you are in Canada (unless you're lucky enough to work for a company that provides you with top-notch benefits).
Give it a few years, they're trying to "fix" that. We'll soon be right up there with you. With crappy health care to boot.
Good -- crappy health care is still better than no health care, which is about all that 1 in 5 people in the US is able to afford.

As a Canadian, living here in the US, and therefore a person who has used both systems, I can tell you that the one we have here in the US stinks. I say that while working for a company that provides medical benefits that are featured in PBS specials about good medical coverage, too.

But... that's a different topic. I pay all the taxes I'm supposed to.

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#211519 - 31/03/2004 08:11 Re: Anyone doing offshore banking? [Re: canuckInOR]
lectric
pooh-bah

Registered: 20/01/2002
Posts: 2085
Loc: New Orleans, LA
crappy health care is still better than no health care, which is about all that 1 in 5 people in the US is able to afford.

If they can't afford it now, then how are they going to be able to absorb the 40% tax hike it would take to get it? Or are the "wealthy" supposed to cover the bill for all that as well? We're fast approaching a point when it makes no point to succeed. Why bother if when you're poor, the government gives you everything and when you're rich the government takes everything? I'm one of those rare people that believes the rich are rich for a reason. They worked to get there. Keep in mind that I live in a city where 50% of working age males are unemployed. Amazingly, they all seem bo be getting health carewithout much trouble.

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#211520 - 31/03/2004 08:13 Re: Anyone doing offshore banking? [Re: lectric]
siberia37
old hand

Registered: 09/01/2002
Posts: 702
Loc: Tacoma,WA
In reply to:

Well, we have it somewhat easy compared to canadians, but only because our medical isn't rolled into our taxes. Give it a few years, they're trying to "fix" that. We'll soon be right up there with you. With crappy health care to boot.




I know quite a few people who already have crappy health care and pay close to $1000 a month for it. Crappy subsidized health care is better than the system we have now, which basically is the premiums keep going up until you either decide you don't want it anymore or your just working to keep your health insurance.

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#211521 - 31/03/2004 08:43 Re: Anyone doing offshore banking? [Re: lectric]
Roger
carpal tunnel

Registered: 18/01/2000
Posts: 5682
Loc: London, UK
Or are the "wealthy" supposed to cover the bill for all that as well?

Perhaps if the government hadn't pissed all of their money away on tax breaks for the obscenely rich, and to fund that small fracas in the Middle East, there'd be plenty of cash from current taxation to pay for it?
_________________________
-- roger

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#211522 - 31/03/2004 08:48 Re: Anyone doing offshore banking? *DELETED* [Re: MarkH]
bonzi
pooh-bah

Registered: 13/09/1999
Posts: 2401
Loc: Croatia
I don't know whether 'Western Balkans' you refer to includes Croatia, but I must warn our potential tax evader that our banks must report every cash transaction over $10000-ish to a government agency, which, in turn, will spill the beans to Uncle Sam if asked (or even if not asked, I am not sure). We have pretty strict laws against money laundering.

However, there might be a way to use off-shore jurisdictions to lower the tax burden legally. To do that, one has to own a company in a country with low taxes, and either do the business from such a company, or make it charge his on-shore company for services (prefferably real ones). Of course, to make it legal, one's own country and the tax-heaven one must have an agreement on avoiding double taxation.

That said, I agree with flame-throvers here. Income and profit taxes are simply part of cost of doing business. It is strange that even in the atmosphere of widespread patriotic breast-beating this simplest way of supporting one's country is something many of breast-beaters try to avoid (I have seen plenty of such cases around me). As to stopping the government from squandering taxpayers' hard earned money, that's an entirely different question.

Now, to climb down from the moral high ground, I believe many of us had commited petty tax evasions (missdeclaring an imported item, charging an extra meal or two to company expense account, things like that). So perhaps we should get easy on casting proverbial stones...
_________________________
Dragi "Bonzi" Raos Q#5196 MkII #080000376, 18GB green MkIIa #040103247, 60GB blue

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#211523 - 31/03/2004 09:10 Re: Anyone doing offshore banking? [Re: lectric]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
Or are the "wealthy" supposed to cover the bill for all that as well?
Yes.

Look, you have two choices here. Pay your taxes that allow the government to help the needy or condemn them to a squalid life.

Also, way too many people see paying taxes as supporting people they don't want to support. This is not what taxes are for. Taxes strengthen the nation's infrastructure. What would happen if you suddenly lost your job and then got sick or had to continue to pay for medications that suddenly increased their prices tenfold? This happened to me, and it was hard. What if I got very sick and was unable to pay for needed medical procedures? I could have died. If the government would have had basic insurance, then that wouldn't happen. If I'd gotten that sick, I would no longer be able to support this country's economy. Unless you see this as an appropriate solution to unemployment, this is a pitiful solution.

I'm not saying that tax money is spent in a manner that I approve of. In many cases, it isn't. But not paying taxes is not an appropriate solution.
_________________________
Bitt Faulk

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#211524 - 31/03/2004 09:16 Re: Anyone doing offshore banking? [Re: hybrid8]
lopan
old hand

Registered: 28/01/2002
Posts: 970
Loc: Manassas VA
I agree, personally I work for a software developement company heavily funded by government contracts. I see how your hard earned tax money is blatantly squandered every day. How bout that social security we've been paying ever since we started working? Guess what, it's not gonna be there...
My point is yeah I pay my taxes and play by the rules will I ever really be able to retire someday for all my hard work? Hell no, not unless I get something else in place, if this guy wants to roll the dice, hey go for it and hope you don't get caught.
_________________________
Brett 60Gb MK2a with Led's

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#211525 - 31/03/2004 10:50 Re: Anyone doing offshore banking? [Re: wfaulk]
bbowman
enthusiast

Registered: 12/05/2002
Posts: 205
Loc: Virginia, USA
I agree, we live in a civilization where we are supposed to work together to help everyone survive. I know that I pay more taxes than the average person and that part of my money goes to other people.

It is kind of like the school vouchers concept. Parents who want vouchers don't want to contribute to the greater good of the country's educational system - just their own family. Well, I don't have any kids in school - so why should I pay those (education) taxes at all? Parents even get to write their kids off and pay less taxes. So in the end parentless people pay for kids education more than the parents do.

If I ddin't care for the greater good of the educational system, that would be my complaint, but I do because I (like most residents) was a recipient of it myself at one time. There is nothing wrong with spreading the wealth.
_________________________
Brent
RioCar MK][a 20GB+80GB
'96 Saab 900s (Not any more)
Still looking for a good way to install in a 2010 BMW 3 series with iDrive/NAV

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#211526 - 31/03/2004 11:50 Re: Anyone doing offshore banking? *DELETED* [Re: bonzi]
g_attrill
old hand

Registered: 14/04/2002
Posts: 1172
Loc: Hants, UK
our banks must report every cash transaction over $10000-ish to a government agency

Same in the UK, except since 1st March even businesses that *accept* large cash or cash equivalent payments must regsiter with Customs & Excise and impement procedures to verify the identity of those making payments.

Gareth

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#211527 - 31/03/2004 12:45 Re: Anyone doing offshore banking? [Re: bbowman]
jmwking
old hand

Registered: 27/02/2003
Posts: 770
Loc: Washington, DC metro
So in the end parentless people pay for kids' education more than the parents do.
But don't forget - those educated kids will grow up and their payroll taxes will be paying your (presumtive - but that's a different debate) social security. You'll likely get back much more from them than you paid to educate them, just as our payroll taxes are supporting current retirees. It's the ultimate pyramid scheme!

-jk

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#211528 - 31/03/2004 13:05 Re: Anyone doing offshore banking? [Re: wfaulk]
Redrum
old hand

Registered: 17/01/2003
Posts: 998
I guess it’s all about how high the dollar value is. While what he is thinking of doing is wrong, I’m sure most of the people flaming here have skipped reporting sales tax for a few on-line purchases. Add that up and I'm sure it would be a large amount.

I would love to be "rich" someday but I will have no motivation to accomplish that if it is then all taxed away. Top heavy taxation is not the way to a prosperous country. We all need to pay a far share. Just because some are perceived to be “rich” does not mean they should be penalized. I guess it is hard to suppress our covetous nature.

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#211529 - 31/03/2004 13:33 Re: Anyone doing offshore banking? [Re: bbowman]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
Even more importantly, we need to have educated people in order to make the country work. If we were to suddenly stop all schooling, then the populace would become much less intelligent and it would be hard to keep the country going. Educating everyone is good for the country, not just those individuals. Keeping people healthy, IMO, falls under the same banner.
_________________________
Bitt Faulk

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#211530 - 31/03/2004 13:41 Re: Anyone doing offshore banking? [Re: Redrum]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
I would love to be "rich" someday but I will have no motivation to accomplish that if it is then all taxed away.
Yeah. That's how it works. You'll still be rich. The fact that you pay more taxes would merely be an indication of that. It's not like you'd be making $100k more and all of it gets taken away again. It's a sliding scale, not stepped.

I find these flat-taxers asinine. Obviously, the person making $200k a year should pay the same percentage as those making $20k a year, because having to live on $120k is the same penalty as having to live on $12k.
_________________________
Bitt Faulk

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#211531 - 31/03/2004 14:33 Re: Anyone doing offshore banking? [Re: lectric]
DLF
addict

Registered: 24/07/2003
Posts: 500
Loc: Colorado, N.A.
I'm one of those rare people that believes the rich are rich for a reason. They worked to get there.
LMAO!

[wiping tears from eyes] That's a good one! I haven't laughed that hard in a while....
_________________________
-- DLF

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#211532 - 31/03/2004 15:21 Re: Anyone doing offshore banking? [Re: wfaulk]
Redrum
old hand

Registered: 17/01/2003
Posts: 998
“"I find these flat-taxers asinine. "”

“It's a sliding scale, not stepped”

I’m sure someone starving in Africa on $2.00 a month would put you on a “sliding scale” until you only had $6.00 a month take home. Why should you have a car when they don’t have shoes. Communism doesn’t work.

We need the rich (whether we like it or not) to keep investing and spending their money to keep the rest of us employed.

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#211533 - 31/03/2004 15:32 Re: Anyone doing offshore banking? [Re: Redrum]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
Yes, we do, but they're still rich no matter whether they take home $4mil or $2.5mil. When you go from $20k to $12k, you go from poor to homeless.
_________________________
Bitt Faulk

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#211534 - 31/03/2004 15:34 Re: Anyone doing offshore banking? [Re: Redrum]
ninti
old hand

Registered: 28/12/2001
Posts: 868
Loc: Los Angeles
> Communism doesn’t work.

The word you are looking for is socialism, but you are right it doesn't work. But neither does straight capitalism, which is why every nation on earth has elements of both, regardless of what economic system they are claiming to have. The question just becomes what is the exact mix that a country is going to have. And I doubt very highly that the U.S. is ever going to slide into full socialism like some people here have alluded to. Having a decent public health care system won't kill you, and it just might save some people's lives.
_________________________
Ninti - MK IIa 60GB Smoke, 30GB, 10GB

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#211535 - 31/03/2004 17:35 Re: Anyone doing offshore banking? [Re: wfaulk]
rompel
stranger

Registered: 26/08/2000
Posts: 44
Loc: California
When you go from $20k to $12k, you go from poor to homeless.
That's the second time you've used those numbers, so I'll call you on it. When has anyone proposed anything close to a 40% flat tax with a zero exclusion (i.e. starting at the first dollar of income)?

IIRC, Steve Forbes called for 17% with a $30K exclusion (for a family of four?). I believe Dick Armey's numbers were in the same ballpark.

--John

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#211536 - 31/03/2004 22:36 Re: Anyone doing offshore banking? [Re: lectric]
hybrid8
carpal tunnel

Registered: 12/11/2001
Posts: 7738
Loc: Toronto, CANADA
Umm, we also pay 15% sales tax on practically everything we buy (including food and booze at any restaurant - of course the restaurant owner pays all kinds of taxes already too). And for some products there are additional taxes, some of which I'm sure are much higher than those in any US state. Some alcohol for instance carries at least a 100% tax already rolled into the price when bought from the store. That restaurant example? The business already pays this and then the consumer shells out again. How about the fact that up here they expect to double or triple tax you on so many other things? Sell a used car? Oh, government gets another lump of cash (from the buyer). It gets sold again? Oops, party time at the premier's house!

Then there's the crazy and ever increasing property tax.

I don't think for a second paying income tax is patriotic. If I could get away with not paying income tax, I would. Preferably in a legal way of course.

It's about time that governments, at every level, start showing the fiscal responsibility and accountability that every company carries in the government's eyes and every public company carries in the eyes of its trading commission and shareholders.

When members of government have practically no accountability for their decisions, something is VERY wrong. When at least half the money I make goes to the government, you'd better believe I want to know exactly what they're spending it on. I want financial reports and paperwork posted monthly. I want to be able to go to a web page at any time and check their financial records. I am an investor after all.

I pay tax on what I absolutely have to pay tax. Private sales that don't need to be registered like a vehicle? Forget about it. Used items bought on eBay when crossing the border? Forget about it - that's a complete scam.

Bruno

_________________________
Bruno
Twisted Melon : Fine Mac OS Software

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#211537 - 01/04/2004 01:29 Re: Anyone doing offshore banking? [Re: hybrid8]
bonzi
pooh-bah

Registered: 13/09/1999
Posts: 2401
Loc: Croatia
I don't think for a second paying income tax is patriotic. If I could get away with not paying income tax, I would. Preferably in a legal way of course.
Consider that, when avoiding paying any tax (illegally), one is not cheating the government, but those fellow citizens who do pay what the law requests them to.
It's about time that governments, at every level, start showing the fiscal responsibility and accountability that every company carries in the government's eyes and every public company carries in the eyes of its trading commission and shareholders.

When members of government have practically no accountability for their decisions, something is VERY wrong. When at least half the money I make goes to the government, you'd better believe I want to know exactly what they're spending it on. I want financial reports and paperwork posted monthly. I want to be able to go to a web page at any time and check their financial records. I am an investor after all.
I agree completely, but I don't see how this contradicts my first argument.
_________________________
Dragi "Bonzi" Raos Q#5196 MkII #080000376, 18GB green MkIIa #040103247, 60GB blue

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#211538 - 01/04/2004 07:00 Re: Anyone doing offshore banking? [Re: bonzi]
JeffS
carpal tunnel

Registered: 14/01/2002
Posts: 2858
Loc: Atlanta, GA
Man, have I missed soo much on my new job (working my tail off leaves little time for posting!).

First off, I think we should all pay our taxes, because that's the law. To not pay taxes IS criminal and unpatriotic. I also think the tax code is screwed up and that it's really lame that the difference in the taxes I pay can be different depending on who I take my taxes to. I ended up saving $1,000 by taking my taxes to a different accountant last year. Talk about favoring the rich. My taxes depend on who can afford to take them to. So I'll agree that the rich are definitly favored when it comes to the tax code. Never mind that I benifited, it isn't right.

As far as the sliding scale stuff, I think it's probably necessary, but I get sick and tired of hearing about tax cuts "favoring the rich" when takes hikes hit the rich more than anyone else. The truth is that any tax change at all is going to affect the rich more than anyone else and that has to be recognized. As stated above, however, we do need to get rid of the tax code complexity that allows the rich to not pay just because their good at a shell game.

All that being said, I think the government spends too much across the board, and both Republicans and Democrats are to blame. Each points a finger at the other and says that their programs are more worthy, but at the end of the day it seems no one knows how to stop spending. My big frustration with the Republicans (who I generall agree with as far as their espoused values go) is that they talk all day about reducing spending and making a smaller government but never do it.

But here's my real conservative side coming out. As I've said before, I don't think mercy should be a function of the government. If we as citizens feel that the poor should be given money, then we should give money to them. It should not be the goverment who decides to take money from us and give it to them. It's fine for the government to make this easier and give us avenues to contribute, but I don't think it should just take our money at whatever predetermined rate the government thinks will be useful. First off, as I said, I don't think this should BE a function of the government, but second I don't really trust what the government does with the money anyway.

It's all well and good to say that we cannot let people starve in the streets so we need to give them money, but why does the government need to do this? If we really care about those in need, why can't we just give the money ourselves? I do. I give a substantial amount of money to my church and a lot of that goes to helping needy people. I realize not everyone goes to church or trusts what churches do with their money (my church is very open with how it spends its money) and that's fine- the church is only one avanue of giving. Instead of taking our money and spending it however the government deems is "merciful", why don't they let us determine that? Give me a tax form that says "oh by the way, I want to contrubed X amount of dollars to feeding low income people". Why does the government specify that mount I need to give? I suppose the answer would be that the government cannot reasonably expect people to donate their money freely, and that they must take it from them if poor people are really to be fed. Well, then apparently that program is not something people want to give to, and there's the real problem. But if people don't want to give their money to help with the poor, then why is the government taking it? Because big brother knows best? I don't like that; I don't like it when Democrats do it for their programs and I don't like it when Republicans do it for theirs. Take my money for the things it truly makes sense for the government to be involved in and let mercy be a function of my choice to give. If I don't want to give then we've isolated the real problem: that a lot of people are selfish with their money and resources. I think that's an issue that needs to be resolved, but having somebody else determine what the appropriate amount of mercy I should provide is not the answer.
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-Jeff
Rome did not create a great empire by having meetings; they did it by killing all those who opposed them.

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#211539 - 01/04/2004 08:55 Re: Anyone doing offshore banking? [Re: JeffS]
lectric
pooh-bah

Registered: 20/01/2002
Posts: 2085
Loc: New Orleans, LA
I swear you're better at expressing the same ideas than I am. That was precisely my point. Taking care of the poor and needy is the responsibility of the people, not the government. Especially when you consider how lean and streamlined and cost-effective the federal government is. -=cough=- Working for the government, I see a lot of the waste, mismanagement, and sweetheart deals going on. It makes me nauseous, but until the lawmakers decide to change things, all I can do is make sure MY little piece of the world is not wasteful.

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#211540 - 01/04/2004 13:23 Re: Anyone doing offshore banking? [Re: lectric]
bbowman
enthusiast

Registered: 12/05/2002
Posts: 205
Loc: Virginia, USA
I think that it has been over-simplified in his post. I believe that in order to help the poor in a practical way, some kind of program needs to be developed. Dropping money in someone's hat is not helping. There need to be counselors and teachers to help these people get back on their feet.

I believe in the "teach a man to fish..." concept. If people just give money out randomly to the poor folk, chances are they will not improve - they will just survive without having some sort of education. And how practical is it to expect someone to take time out of thier one life to teach somebody one on one how to get a job, recover from depression and possibly learn some ethics? That is what the government programs are for.

Also, the government is supposed to be representative of the people.

I know how wasteful the government is - I work as a contractor for it - it is all made up of citizens - perhaps it is just a reflection of the populace.

I think that the government should :
1. make it easier to fire a government worker based on performance issues
2. hire more real (qualified) workers and less contractors that really eat up the budget.

my 2 cents
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#211541 - 01/04/2004 13:35 Re: Anyone doing offshore banking? [Re: bbowman]
lectric
pooh-bah

Registered: 20/01/2002
Posts: 2085
Loc: New Orleans, LA
And how practical is it to expect someone to take time out of thier one life to teach somebody one on one how to get a job, recover from depression and possibly learn some ethics? That is what the government programs are for.

The problem is that government programs very very rarely do more than hand out checks. It's a neat theory, but I have yet to see it work in any meaningful way.

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#211542 - 02/04/2004 01:18 Re: Anyone doing offshore banking? [Re: JeffS]
canuckInOR
carpal tunnel

Registered: 13/02/2002
Posts: 3212
Loc: Portland, OR
I get sick and tired of hearing about tax cuts "favoring the rich" when takes hikes hit the rich more than anyone else. The truth is that any tax change at all is going to affect the rich more than anyone else and that has to be recognized. As stated above, however, we do need to get rid of the tax code complexity that allows the rich to not pay just because their good at a shell game.
Do you not find those statements hold contradictory ideas?
takes[sic] hikes hit the rich more than anyone else. The truth is that any tax change at all is going to affect the rich more than anyone else
Yet...
tax code complexity that allows the rich to not pay just because their[sic] good at a shell game
Tax hikes attempt to hit the rich, but because of the shell games, they often don't. Then, along come the tax cuts, and who benefits from them the most? The rich folks, playing the shell games. The people in the middle, and the people on the bottom get screwed over.
Take my money for the things it truly makes sense for the government to be involved in and let mercy be a function of my choice to give. If I don't want to give then we've isolated the real problem: that a lot of people are selfish with their money and resources. I think that's an issue that needs to be resolved, but having somebody else determine what the appropriate amount of mercy I should provide is not the answer.
Tell you what, then... you prentend all your taxes go to infrastructure, and police, and the military machine, and I'll pretend all my taxes went to help feed the homeless.

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#211543 - 02/04/2004 12:38 Re: Anyone doing offshore banking? [Re: JeffS]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
why does the government need to do this?
Because it's important to the welfare of the country itself to have a healthy populace. I'm not saying that there aren't worthless people out there that will continue to be worthless no matter what (some of them are even wealthy anyway), but there are a lot of people who would like to contribute to society but are unable to because they can't get healthy enough or pay rent or whatever. Society would be better if those people were able to be productive. I think it's the government's responsibility to deal with that.
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#211544 - 02/04/2004 12:48 Re: Anyone doing offshore banking? [Re: wfaulk]
tonyc
carpal tunnel

Registered: 27/06/1999
Posts: 7058
Loc: Pittsburgh, PA
I think it's the government's responsibility to deal with that.
I think the situation here is that Jeff would prefer to attack the problem by having people donate money to take care of these problems, rather than having the government do it. Maybe he's an idealist, and thinks it's actually possible to get the rich to care about something other than becoming more rich. Those same rose-colored glasses led to trickle-down economics in the 80's, and everone was shocked and amazed to learn that, instead of trickling down, the rich took all the money before it got down to those who needed it. Or, at best, some of the rich will make donations to certain causes that may seem like a lot of money when they sign the cardboard check, but in reality, are a tiny portion of their massive wealth, not nearly enough to compensate for what the have-nots don't have. I think Rockefeller or someone like him pioneered these practices way back when.

I will concede that government meddling in things can sometimes go the wrong way, and create situations where people expect handouts to sustain their living instead of to fulfill emergency situations and temporary shortfalls. But the fact is, if the government doesn't do it, no amount of preaching to the wealthy is going to get them to give more than a token donation to those who need it. If more effort is put into tracking down and punishing those who abuse the system, programs like welfare, social security, and medicare can do their job without draining the government's budget or requiring too much in the way of taxes. But simply leaving it up to "the good will of the wealthy" isn't the answer.
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#211545 - 02/04/2004 16:56 Re: Anyone doing offshore banking? [Re: JeffS]
genixia
Carpal Tunnel

Registered: 08/02/2002
Posts: 3411
It's all well and good to say that we cannot let people starve in the streets so we need to give them money, but why does the government need to do this?

What about other social issues? What about if the South Texas Project 2.5GW reactor went belly up and spewed all over Houston? Would you being willing to donate extra to cover all the additional social costs of this? What about next year? Or 10 years down the line? Do you think that everyone living in Seattle would donate? Or those in NYC? Again, what about 10 years down the line?
Just for reference, the current social welfare costs of Chernobyl are about 5-7% of Ukraine's GDP. It's probably costing Russia and Belarus similar amounts, since Chernobyl is on the border of the three. This is 17 years after the accident .
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#211546 - 03/04/2004 09:09 Re: Anyone doing offshore banking? [Re: genixia]
JeffS
carpal tunnel

Registered: 14/01/2002
Posts: 2858
Loc: Atlanta, GA
In some ways I'm an idealist, in other ways a realist. I do recognize that most of the wealthy in this country probably are not going to give money to social programs out of their good will. I think the issue is that while we'd all agree that the rich should be giving money to social programs because it's the "right thing to do", I don't think it's right to take it from them. Mercy should be a free gift, and if it's not then the way to address the problem is by working on people's hearts, not threatening them and forcing them to give.

My picture of the situation is like this. You have a bunch of people living together in an apartment building. They each own their own apartments, but there are some things that are easier to manage on a building level so they get together and hire someone to manage those for them. So now they contribute toward a "building" fund that pays for these services. Because some have bigger apartments than others, some pay more to the building fund. This is all a good thing and makes good economic sense.

Now imagine that one of the tenants comes down with cancer and needs an expensive operation in order to survive. Sensing the need, the building manager alerts all of the people to the problem and suggests they donate to help the cancer patient out. This is all good, even when he goes the extra step to figure out how much each person would have to give in order for the total cost to be met. Oh, and by the way, he's taking up a lot of time figuring this stuff out, so he needs to pad the numbers a bit to cover his own costs and investment. However, one of the tenants decides not to contribute. Maybe he's cold hearted, maybe he's hard up for cash, maybe he doesn't like that the manger is taking some of the money for himself, or maybe it's one of countless other reason, but he doesn't want to give his money to help this lady. So the building manager tells this non-giver that if he doesn't give he's going to kick him out of the apartment complex.

This last part is where I have a problem. It is a good thing for the building manager to alert everyone to needs, but it shouldn't be his job to start taking money by force for things other than managing the building. What would be appropriate would be for the manager or the other owners to meet with the non-giver and try to convince him to change his stance, but ultimatly it's his choice.

Mercy should be a free gift that we all decide for ourselves, not each other. If our society is so self-centered that none of us want to give to the needy, which I think is largely the case (the realist part of me), then we have a problem. However, taking the money by force is not a good answer, IMO. The idealist in me says that we should work to influence people's hearts and minds so that mercy is important to them, not hold guns to their heads and say "you WILL give". That is only addressing a symptom (that the poor need money), not the problem (that we are an unmerciful people as a whole). What we do is keep addressing symptoms, some of which we can't even agree are symptoms. Some say that xyz is a problem, others don't even see the issue. How much better would it be if we could all decide for ourselves what the ills of society are and address them our of true mercy?

OK, truth be told we do need organizations in the middle who do the job of determining where the money should go and what to do with it. Simply handing it out on street corners is not an effective answer. However, it is still up to us which of these non-profit organizations we trust (for me it is largely my church, though I also give to some other organizations) and CHOOSE to give our money to.

So yes, I'm an idealist in a lot of respects. I think people should take personal responsibility for mercy, which doesn't happen when the government extracts money from people by force. It is a much more difficult task to influence people's hearts and minds to give of themselves, but it is also a task that will make them (and us) better human beings.

Lastly, Bitt has an excellent point about government's responsibility toward doing what's best for the nation. In this respect what the government is doing is not "mercy"; it is smart spending. I can actually go along with this and see that some social programs are designed with the purpose of helping the country, not helping individuals. So perhaps I can say this: I think the governments responsibility should be limited to helping the country; helping individuals should be the responsibility of other individuals.

An example of this is the public school system. While I'm all for privatization in order to boost both the input and output into our educational programs (better education for students and better pay for teachers), I think we'd be remiss in not providing a solid, well funded scholarship program for those who couldn't afford schooling. It would make sense for the government to be involved here because (as Bitt pointed out) the education of our young affects us all, and a more educated country is a stronger one.

So I'm not totally against the government being involved in social programs, I just think the mission needs to be refined a bit. Of course, this is all really academic because there's not a politician in the world who's going to get up and say "I think that program xyz no longer should be government funded and instead should be on the people's shoulders if they think it is something worth giving money to."
_________________________
-Jeff
Rome did not create a great empire by having meetings; they did it by killing all those who opposed them.

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#211547 - 03/04/2004 13:15 Re: Anyone doing offshore banking? [Re: JeffS]
bonzi
pooh-bah

Registered: 13/09/1999
Posts: 2401
Loc: Croatia
Mercy should be a free gift that we all decide for ourselves, not each other. If our society is so self-centered that none of us want to give to the needy, which I think is largely the case (the realist part of me), then we have a problem. However, taking the money by force is not a good answer, IMO. The idealist in me says that we should work to influence people's hearts and minds so that mercy is important to them, not hold guns to their heads and say "you WILL give". That is only addressing a symptom (that the poor need money), not the problem (that we are an unmerciful people as a whole). What we do is keep addressing symptoms, some of which we can't even agree are symptoms. Some say that xyz is a problem, others don't even see the issue. How much better would it be if we could all decide for ourselves what the ills of society are and address them our of true mercy?
It would be better, but we do have a problem you are talking about.

So, the fact that money for social programs etc is taken from you, instead of being given by you, spoils your sense of doing something merciful of your own free will. Well, too bad. The tone of your post shows that you are perfectly aware that 'merciful society' where all ills are addressed by individuals' voluntary action is wishful thinking. Such societies exist in places like Ursula K. Le Guin's fantasy (which I highly respect), but in real world we abandoned them when we invented private ownership and power hierarchies.

In my opinion, subsistence-level income, basic health care and fair chance for education regardless of socio-economic status are rights. If the state does not provide those rights, I have no use for state.
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#211548 - 03/04/2004 13:15 Re: Anyone doing offshore banking? [Re: bbowman]
tanstaafl.
carpal tunnel

Registered: 08/07/1999
Posts: 5541
Loc: Ajijic, Mexico
Well, I don't have any kids in school - so why should I pay those (education) taxes at all?

I know I am taking your statement out of context, and that you were stating it as hyperbole to show why you felt just the opposite, but the statement does raise an interesting point.

Why should people pay to educate other people's children? Perhaps because 10 years down the road, they'll by flying on an airplane piloted by one of those kids, or having their appendix (appendices? His appendix? Help me out here, Bitt!) removed by a surgeon who is a product of that educational system they didn't want to support.

I can't imagine an investment that has a better long-term payback than investing in education.

Can you imagine the benefits we would derive if even one month's cost of Mr. Bush's middle-east adventure were applied to education in this country? But that's another topic entirely.

tanstaafl.
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#211549 - 03/04/2004 21:07 Re: Anyone doing offshore banking? [Re: JeffS]
canuckInOR
carpal tunnel

Registered: 13/02/2002
Posts: 3212
Loc: Portland, OR
I think people should take personal responsibility for mercy, which doesn't happen when the government extracts money from people by force. It is a much more difficult task to influence people's hearts and minds to give of themselves, but it is also a task that will make them (and us) better human beings.
Uhh... isn't this why the government gives tax breaks to people that voluntarily contribute to charitable organizations?

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#211550 - 03/04/2004 21:24 Re: Anyone doing offshore banking? [Re: canuckInOR]
JeffS
carpal tunnel

Registered: 14/01/2002
Posts: 2858
Loc: Atlanta, GA
isn't this why the government gives tax breaks to people that voluntarily contribute to charitable organizations?
Yeah, it is and that's a good thing for the most part, except it's all the exemptions that cause the tax code to be so complicated.

FWIW, I don't think the path to getting to my ideal is to cut all social programs and rely on personal mercy to do the trick- though our government IS spending to much and needs to start cutting back somehow. I think the real ultimate path is to move people to take responsibility for mercy and thus lessen the need for government intervention. I'm not totally certain that the government will lessen taxes if social needs get met outside of it's programs though; more likely is new social programs will be developed to consume spending.


Edited by FerretBoy (03/04/2004 21:28)
_________________________
-Jeff
Rome did not create a great empire by having meetings; they did it by killing all those who opposed them.

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#211551 - 04/04/2004 01:04 Re: Anyone doing offshore banking? [Re: JeffS]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
though our government IS spending to much and needs to start cutting back somehow
I think you'd have a hard time finding anyone who didn't agree with you if you tempered it with a little "improperly" instead of simply "to[o] much". (Well, outside the military-industrial complex, anyway.)
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#211552 - 04/04/2004 01:54 Re: Anyone doing offshore banking? [Re: JeffS]
genixia
Carpal Tunnel

Registered: 08/02/2002
Posts: 3411
You're right. It's time to cut taxes.

This year the USA will spend more on its military than the rest of the World combined.
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#211553 - 04/04/2004 03:08 Re: Anyone doing offshore banking? [Re: wfaulk]
JeffS
carpal tunnel

Registered: 14/01/2002
Posts: 2858
Loc: Atlanta, GA
I think you'd have a hard time finding anyone who didn't agree with you if you tempered it with a little "improperly"
Done!
_________________________
-Jeff
Rome did not create a great empire by having meetings; they did it by killing all those who opposed them.

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#211554 - 04/04/2004 03:11 Re: Anyone doing offshore banking? [Re: JeffS]
wfaulk
carpal tunnel

Registered: 25/12/2000
Posts: 16706
Loc: Raleigh, NC US
Then again, we each have our own ideas of what improperly means. Then again, again, there's certain obvious misspending that we can all agree on, I think. (Not that I can seem to come up with a list right now. It is late, though.)
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#211555 - 12/04/2004 06:21 Re: Anyone doing offshore banking? [Re: canuckInOR]
bonzi
pooh-bah

Registered: 13/09/1999
Posts: 2401
Loc: Croatia
An intersting, somewhat related article comparing the neighbors.
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#211556 - 13/04/2004 01:46 Re: Anyone doing offshore banking? [Re: bonzi]
canuckInOR
carpal tunnel

Registered: 13/02/2002
Posts: 3212
Loc: Portland, OR
Damn good article, I say!

My favourite part:
Canadians responded that they were not afraid to fight. Indeed, they noted that unlike the U.S. Canada did not have to be attacked before it sent troops to defend democracy against Hitler and Mussolini.

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#211557 - 13/04/2004 05:29 Re: Anyone doing offshore banking? [Re: canuckInOR]
peter
carpal tunnel

Registered: 13/07/2000
Posts: 4173
Loc: Cambridge, England
Indeed, they noted that unlike the U.S. Canada did not have to be attacked before it sent troops to defend democracy against Hitler and Mussolini.
Hitler and Mussolini had huge electoral majorities. Whatever we were defending, it wasn't democracy.

Peter

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#211558 - 13/04/2004 08:34 Re: Anyone doing offshore banking? [Re: peter]
Geoff
enthusiast

Registered: 21/08/1999
Posts: 381
Loc: Northern Ireland
In reply to:

Hitler and Mussolini had huge electoral majorities. Whatever we were defending, it wasn't democracy.



I suppose it depends on whose democracy we were defending... I'm sure that even if Hitler could have secured 100% of the vote in Germany, it still didn't give him a mandate to invade Poland.
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#211559 - 14/04/2004 00:16 Re: Anyone doing offshore banking? [Re: peter]
canuckInOR
carpal tunnel

Registered: 13/02/2002
Posts: 3212
Loc: Portland, OR
Whatever we were defending, it wasn't democracy.
Yeah, I know. I chalk it up to it having been an American writer. A goodly number of Americans don't actually seem to understand democracy, but rather use it as a sort of catch all for anything that seems more correct than whatever the other guys are doing, sort of the same way "patriotic" is bandied about as meaning rooting for us is more correct than, well, anything else. A more appropriate word might have been "humanity".

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#211560 - 14/04/2004 01:33 Re: Anyone doing offshore banking? [Re: peter]
bonzi
pooh-bah

Registered: 13/09/1999
Posts: 2401
Loc: Croatia
Hitler and Mussolini had huge electoral majorities.
...in their respective countries, yes. But British even removed their poor King (under that charming 'transatlantic forbidden love' pretext) for liking Hitler too much...

Canadians from the article were not engaged in Iraq-style 'regime change'; they were not protecting Germans from Hitler, but the rest of Europe.

Apropos Hitler's popular support and WWII: tanstaafl just reminded us in another thread of this popular method of handling depressions.
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