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Wikileaks To Name Swiss Bank Tax Evaders
eldavojohn writes "The old cliche that the rich and corrupt hold all their money in Swiss bank accounts (to avoid taxation) may finally have a bit of transparency, as the news today is that Wikileaks has been handed a list of account holders tendered by Rudolf Elmer, former banker of Julius Baer. Julian Assange promises a 'full revelation' while Elmer cited his motivation as being: 'I want to let society know how this system works. It's damaging society.' This appears to be real, as Mr. Elmer is soon to appear before a Zurich regional court on charges of coercion as well as violations of Switzerland's strict banking secrecy laws. The public may soon find out that their favorite celebrity, politician or employer doesn't feel responsible to contribute financially to the commonwealth at the expense of privacy."
There are more details here.
Personally, I'm just gonna sit back and watch this unfold *grabs popcorn*
I don't recall hearing Wikileaks making this announcement at all though - it sounds like someone handed over some big leaks than immediately turned the corner to the local news outlet and said "GUESS WHAT I JUST HANDED TO WIKILEAKS".
This news report is by some other news agency, not Wikileaks.
I do not understand why wikileaks is telling everyone what they will reveal later. Can't they just post it immediately ?
Better media management. It's easy for something even as large as the US diplomatic cable leak to get swept under the rug of the incessant 24 hour news cycle. By letting it out in bits and pieces he keeps the media interested and talking about Assange and Wikileaks. He is also going for brownie points by establishing relationships with more mainline media outlets. Those take time. TFA also mentions that Wikipedia is trying to evaluate the provenance of the disks, although it's not clear how they plan on doing that.
Rather a dangerous game he's playing. He seems to enjoy it - likely feeds his apparently large ego. I would wonder, though, just how long he can keep this sort of thing up. I don't see an heir apparent in Wikileaks, but there are other sites that are trying to duplicate their efforts.
As long as there are people with source material who are willing to give it to essentially total strangers we may see this as the new big thing. Information wants to be freed....
Faster! Faster! Faster would be better!
I guess Assange didn't like that the swiss bank PostFinance closed his account.
Actually, wikileaks has long disclosed a lot of information about Julius Baer bank, starting a few years back.
Assange opened the PostFinance account under false pretenses, they were entitled to close it. PostFinance isn't a "normal" Swiss bank, it's owned & run by the post office.
PostFinance isn't what you use when you're trying to evade taxation by hiding cash, you would use one of the privately owned Swiss banks.
They don't report amounts, but they DO now report that you DO have an account with them now. /something/ elsewhere...
If you hold money abroad, and file a US tax return, you have to submit your holdings. You could get away with it (probably) before as the banks wouldn't say a word.
Now the government knows you've got
Waiting for an amusing sig.
Karma's a bitch ...
'If Christ had tweeted the sermon on the mount, it might have lasted until nightfall.' - John Perry Barlow
Despite their exotic reputation, the vast majority of accounts were held by fairly ordinary folk (there seemed to be an inordinate number of german dentists). So while this may sound like a blow at the rich and powerful, there's going to be a lot of very unextraordinary middle class folk whose financial details are laid bare by this. Having a Swiss bank account is not illegal in itself.
From the New York Times coverage:
A former Swiss bank executive said on Monday that he had given the WikiLeaks founder, Julian Assange, details of more than 2,000 prominent individuals and companies that he contends engaged in tax evasion and other possible criminal activity.
Emphasis mine. Elmer is doing this because he feels the list he has compiled is a list of unjust individuals and right now Wikileaks is doing all in their power to verify that these individuals are, in fact, tax dodgers. He says the list has 40 politicians and “pillars of society” worldwide among those two thousand.
You might want consider whether you'd like your finances laid bare before you acclaim this as another win for david over goliath.
Precisely why I ended the summary with "at the expense of privacy." And it's not just tax evasion. You do realize that if Julius Baer is associated with heinous criminals worldwide that it could get ugly on an international level, right?
My work here is dung.
The inequitable taxation also unfairly hits small businesses. They're unable to offshore their finances, and they end up bearing the brunt of the public's anger at multi-billion dollar companies evading taxes. Consequently in the U.S., small businesses pay some of the highest tax rates among OECD nations. The business taxes passed to assuage people upset at big corporations evading taxes, are instead helping big corporations by crippling the small businesses who could otherwise challenge their domination.
After a lot of thought, I actually reached the opposite conclusion as you. One of the core objections leading to the U.S. Revolutionary war was "No taxation without representation." That's a principle I think most people would still agree makes sense. And since I believe corporations should have no influence on government, I can't simultaneously justify to myself wanting to tax them.
Sure it floats. All you have to do is raise the tax rate on the folks paid millions. I don't think this problem is as large as most people think it is though. If you pour over the IRS tax statistics, you'll find that the vast bulk of the income base (in the U.S. at least) is the upper-middle class and lower-upper class, roughly $75k-$250k/yr. What they lack in income, they make up for in population.
The area where it gets tricky is perks paid for by the business but which the individual doesn't report as an income-equivalent benefit. e.g. a CEO flies around in a corporate jet, but doesn't report the added expense of operating the private plane over a coach ticket as a taxable benefit.
What does having a bank account have to do with taxes? Taxes are supposed to be about the money you earn, not the money you have. Funny how this is turning out.
Did you earn a large amount of money that you don't want to pay taxes on? Hide that income in a Swiss account. US banks report that information to the IRS, Swiss banks do not. This allows you to hide income from the IRS and not pay taxes on it.
Interest is money that's taxed.
Income earned in other countries may not be adequately taxed (or declared as taxed in your home country) and then never actually get taxed because it doesn't enter that country. A bank account will tell you *exactly* how much that person earned worldwide and who needs to tax it. Most Swiss banks will NEVER tell the countries involved that they suspect untaxed money is sitting in their accounts - go abroad, earn £10m, stick it in a Swiss account, come home, claim benefits.
There are a million and one ways to launder money, and to avoid taxation, and most of them involve off-shore accounts like these.
Switzerland's top tax bracket is 40%+, so I'm not really sure what it is you're trying to get at. That we need higher taxes on the wealthy in America? I agree.
Do you realize how retarded it makes you look to use multiple accounts to rail against people for hiding behind pseudonymity?
You understand that nobody takes you seriously, right?
You're wrong on two counts:
1) It distorts the calculations on what is actually needed for the common good. That has everything to do with what we really need.
2) It undermines the sense of duty people have to obey the law and contribute.
The government is supposed to obey the law and serve the common good. When it doesn't and gets away with it, people feel like chumps for going along with it in the best of cases. In the worst cases, they feel like the rule of law is meaningless.
US has (together with the UK) the lowest social mobility between generations among developed countries (how far children can progress from the socioeconomic status of their parents, basically) - so much for "self motivation, personal responsibility, hard work, American Dream" (just that, a dream, another product to sell)
The highest is in so-called "nanny states" BTW.
One that hath name thou can not otter
I know this one. The ability and legality of the US Government to levy and collect taxes is directly codified in the Constitution.
"I guess the moral of the story is, don't paint your airship with rocket fuel." -- Addison Bain
We had a balanced budget a little over a decade ago. It was only after the "party of fiscal responsibility" took over that spending really spiraled out of control.
--Jeremy
Really? that's strange because the debt history shows that the US debt has risen every single year since 1977 and probably going back to 1870 although wiki doesn't break out individual years past 1977. Regardless of which party is in office, or which party controls congress and thereby the purse, the debt keeps going up and accelerating.
You should place less faith in what the talking heads of either party say they are doing and what the actual records shows they did. At the current rate of increase Obama's administration will outstrip both Bush and Clinton in debt accumulation....combined.
http://en.wikipedia.org/wiki/History_of_the_U.S._public_debt
The problem is when they claim a balanced budget, they neglect to mention the various programs they have decided to exclude from the formula. Both sides of the aisle are a bunch of Elitist millionaires who make a habit of exempting themselves from the very laws they impose on the rest of us. I distrust all of them until such time there is both a balanced budget law/amendment and term limits on the lot of them.
Even if someone opens up a shop, it doesn't mean you trust their credentials unless they act with deliberate subterfuge, and if they're willing to go that far they might ignore licensing laws anyway.
Your leech example is a very, very bad argument, because medical science in those times was non-existent and if you had regulatory bodies then they'd still be happily accepting common "knowledge" over mumbo-jumbo much in the same way the British Health system (used to until recently?) accept homeopathy. Your implicit belief is that regulatory bodies operate objectively and on sound science, which is neither true nor really possible (since "accepted science" is based on convention and the absolute truth is unknown to us). You have a very poor understanding of the history of medicine if you think that stuff like bloodletting and leeches was due to no regulation--it was based on theory at the time, rooted in the thought of Galen, Hippocraties, and other Greeks. Unscientific, yes, but these were hardly scientific times.
But a much stronger point is that simply a lot of the regulations are too strict and act to restrict people that DO have enough training and expertise.
As an additional musing, if you belief that the government should regulate things out of truth, then should the government regulate religious belief and only allow "scientifically true" beliefs, i.e., only those that can be demonstrated factually? Should advice be regulated in exactly the same manner that psychology is, since bad advice on human behavior is in essence malpractice in psychology?
In the US, government jobs pay significantly better than private sector jobs on average.
One of the famous "lie while telling the truth" games that the right loves to play. The average US government job does pay more than the average private sector job. But US government jobs are NOT average jobs. Most require higher levels of education and experience than the average private sector job.
When compared to others of equal education and experience, US government workers are paid about 20% less than private sector workers. The discrepancy is worse for workers in medical fields and legal fields where the discrepancy approaches 45% (i.e. VA hospitals don't pay well) The only government workers that are paid better than their private sector workers are the ones at the bottom of the salary scale, janitors and menial laborers, and those, only by about 4%.
But apparently the right thinks a government lawyer should be paid like a grocery store clerk.
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