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Will the Pope Declare Google Evil?
theodp writes "In the next few days, Pope Benedict XVI plans to issue his second encyclical, in which he is expected to denounce the use of tax havens as socially unjust and immoral in that they cheat the greater well-being of society. He is also expected to argue that the globalized economic world needs to be regulated. Prime technology companies playing the offshore 'profit laundering' game include Dell, Google, Microsoft, and Sun, who set up subsidiaries in Ireland, where the corporate tax rate is a low 12.5% and no taxes are charged on royalties (e.g. from patents)."
So will the church lead by example? Religion is the biggest tax haven in this country.
Just one more hypocrisy from the church, I am wagering.
As Mark Shea once said, "Deduct 50 IQ points when the media discusses religion. Deduct 75 points when discussing Catholicism." It is surprising (or not) that people are making judgments on a document that even isn't released. Wait until the document is released and read what it actually says before commenting.
The point being made is that rich individuals and corporations are setting up a minimal presence in a foreign tax country (tax haven) in order to avoid paying taxes in the countries where they actually live or work. This is "bad" because by not paying local taxes, they're not supporting their local government and social programs. If you live in the [insert your country here] and use the Netherlands as a tax haven, then you're not paying your fair share for your country's universal health care, or 911 services, or military that keeps your democracy free, or whatever.
If you're going to benefit from your local country's laws and services, is it really too much to ask that you pay your fair share? If local taxes are too burdensome or wasteful, then work to improve them instead of hiding from the problem(s). We all complain that money influences politics. If people are allowed to hide money overseas, then they have no motivation to reform existing local laws. If they were forced to resolve the issues locally, they would be subject to local laws and publicity, thus making it difficult to corrupt the reformed laws. By hiding money overseas, there is little legal or public oversight to prevent abuse (such as laundering drug money.)
Thus tax havens create at least two problems: local services, laws, and legal protections are not being paid for, and local laws, morals, mores, and publicity are being evaded. The latter is probably the greater of the two sins.
A third problem that the Pope appears to be concerned about is that local taxes pay for social programs. You know, homeless shelters, health care for the poor, etc.. By turning to a tax haven, you are implicitly turning your back on your fellow man. Do you really think that anyone using a foreign tax shelter is actually using the money they saved back to build up their local community? Granted, the Catholic Church shouldn't be throwing stones, but a Christian who hides tax money isn't much of a Christian. Belittle the Pope all you want, but he is probably the only individual who has the ability to bring worldwide attention to global morality. You don't have to like the guy shining the light on the cockroaches, but do be glad that someone is doing it. (But we do keep a mirror handy to throw some of that light back.)
The question is not taxes or no taxes. The question is how much taxation and how exactly are those taxes to be put to use.
Similar to the upcoming US election results