Puerto Rico – a new option for Americans to escape US taxes
The US government is no slouch when it comes to shaking down its citizens for every penny. The mind-boggling spending on welfare and warfare policies necessitates this. It would be dangerously foolish in the extreme to think you could slip one past them. Americans are in the uniquely unfavorable position of having arguably the worst tax policies and a government that relentlessly enforces them everywhere in the world.
There is, however, another way besides death and renunciation to legally escape US taxes, thanks to stunning new incentives in the Caribbean island of Puerto Rico, a commonwealth of the US. It’s not quite a state, and it’s not quite a foreign country. This allows it to have a special tax arrangement. Namely, residents of Puerto Rico who earn their income in Puerto Rico do not pay US federal taxes—they pay Puerto Rican taxes.
Previously this mattered little, since Puerto Rican tax rates were comparable to US federal tax rates. However with the new tax incentives, the situation has changed immensely. Puerto Rico recently slashed its taxes on dividends, interest, and capital gains to ZERO for new residents…
America on its way toward a police state?
For those of us who reside outside of the EU and the US, developments in those jurisdictions in recent years have been troubling indeed.
To be sure, in much of the First World, developments have followed a similar pattern: a governmental trend toward fascism and socialism, dramatically expanding debt, ever-increasing destruction by the banking system, etc.
However, the US has gone well beyond most countries in one aspect: legislation that allows the government to transform itself into a full-on police state. Whilst other countries have increased their policing powers, none holds a candle to the transformative legislation passed in the US.
Swiss Gold Referendum: Latest News and Speech Lukas Reimann
Swiss parliamentarians urged rejection of a popular initiative that would curtail the Swiss National Bank (SNB)’s independence by requiring it to hold a fixed portion of its assets in gold. Members of the Swiss parliament’s lower house voted 129 to 20 with 25 abstentions today against the plan, which demands that at least 20 percent of the central bank’s assets be in gold. It would also disallow the sale of any such holdings and require all SNB gold be held in Switzerland.
No date for a national vote has yet been set. The government in November also recommended the initiative be opposed, saying it would impinge upon the SNB’s ability to conduct monetary policy. Parliament and the multi-party government issue recommendations on all national referendums as a matter of procedure.
The market is rigged
The cultural effects of inflation create the debate on market rigging, because it is financially fatal to leave one’s money in cash as government continually erodes its purchasing power. As Jörg Guido Hülsmann writes in The Ethics of Money Production, inflation deprives people “of the possibility of holding their savings in cash.” Professor Hülsmann explains that the elderly, widows, and orphans “must invest their money into the financial markets, lest its purchasing power evaporate under their noses.”
With a sound currency a person could put a few bucks away in a savings account each month, confident its purchasing power would keep pace and the interest earned provide an adequate nest egg, all the time being blissfully unaware of what was happening on Wall Street. But in the modern world, Hülsmann writes, people “become dependent on intermediaries and on the vagaries of stock and bond pricing.”
This is great for Wall Street players and bad for everyone else.
Ukraine crisis threatens peace in Europe
The crisis in Ukraine threatens peace across Europe, Russia warned (last week) as several deaths were reported in the country’s east where Kiev forces are attempting to seize back control of the town of Slavyansk.
In a report put out by Russia’s foreign ministry, the Kremlin called upon the international community to bring an end to the Ukrainian conflict, blaming the violence on “ultranationalist, extremist and neo-Nazi” forces.
Russia respects autonomy votes in eastern Ukraine
Separatist leaders in Ukraine’s volatile Donetsk region formally asked to become part of Russia on Monday, going beyond the simple independence question raised in a referendum and advancing the threat of Ukraine’s breakup.
The declaration bore some resemblance to the referendum and annexation scenario that played out in Crimea earlier this year, but signs of a different approach by Russia began to emerge.
Russia said it “respects” the results of two disputed referendums in eastern Ukraine that separatists said backed independence, as it set a deadline for the government in Kiev to pay for gas supplies. The government in Moscow assumes that the practical implementation of the referendums will be realized in a civilized manner, without any relapses of violence.
Ukraine and its allies, in contrast, accuse Putin of stoking unrest that’s threatening to rip the former Soviet republic apart in the run-up to the May 25 presidential election. The European Union imposed sanctions on companies in Crimea and is threatening more measures to target Russian industries.
Well done Angie – Let’s do a selfie!
Let’s just hope it doesn’t blow up in their faces…