Taxing the Uber-Rich: Not Just on the US Agenda
Everyone knows that the European Union has problems: a weakened euro, several countries near bankruptcy, recessions, bank failures, and racial tensions. Germany's Angela Markel has risen as a leader before the IMF and European Central Bank, proposing solutions to these problems and organizing the financial aid that is going to some of these bankrupt countries, in particular Greece. Greece has turned out to be the guinea pig of the European Union. They have made very severe austerity measures part of the conditions under which they will give the struggling country financial aid. Later retirement times, higher taxes, cutting benefits and pensions, and public sector layoffs are all conditions of the help which Greece so desperately needs.
Although the Greek politicians have no choice but to accept these terms, the Greek public is extremely unhappy. With unemployment at 25.4 percent in August, protests have run rampant. People simply cannot live under these conditions, and fingers are being pointed at the extremely rich. In 1991, a Greek journalist published a list of 2000 rich Greeks who were said to be avoiding taxes by placing their money in foreign Swiss banks. In 2010, the 'Largade List,' as it came to be known , was turned over to the Greek Finance minister. The list was 'lost' twice under two different Finance ministers, and the journalist -- Costas Vaxevanis -- was placed under arrest. With the rest of Europe cracking down on the 1% and raising taxes, the Lagarde List was a scandal in the European media and the Greek populace was furious.
In addition, the rise of the neo-Nazi Golden Dawn political party in Greece has led to an increase in racial violence, and many immigrants are being targeted. The case of a hapless undocumented immigrant who reported to his morning shift at a bakery as usual, and ended up beaten and chained by the neck to a tree has made international headlines. Anti-fascist protests, however, are regularly dissolved by the police using such tactics as tear gas. Purportedly, 15 of these protestors were held in police head-quarters and tortured. Reporters detailing this were taken off the news. Satirical anti-religious plays and even Facebook pages have also been prosecuted in Greece, as well as photographs taken by an amateur photographer of a Golden Dawn and anti-fascist face-off. In effect, Greece is using these 'scare tactics' to suppress its own citizens' freedom of speech and freedom of the press. Corruption appears to be running rampant, and violence is escalating. Greece appears to be heading into a recession, and one must wonder if these austerity tactics really are the best way to encourage fiscal responsibility. Yet, Greece is not alone.
Just today (Wednesday, Nov. 14th) austerity protests across Europe rallied hundreds of thousands of worn, angry people, particularly in hard-struck countries like Italy and Spain. Many of these protests devolved into violence, resulting in fighting, fires, and destruction of property. Smaller, more sedate protests occurred in Germany and the Netherlands. Many European countries are facing bankruptcy and have been forced to ask for help from the IMF and Central European bank. Some countries, like Spain, are facing attempted secession by regions within the nation. Others, like Greece, are susceptible to the rise of radical political parties, as citizens become increasingly disenchanted with the current politicians. Financial reforms are undoubtedly necessary, but such severe austerity measures, implemented within such a short time frame, are crushing people's livelihoods. Indeed, they have begun to tear Europe apart.
Italy has introduced an interesting new solution into its fiscal agenda; it has begun to tax the Catholic Church. As the global recession continues, people are becoming more and more aware of the tactics taken by the extremely rich to avoid taxes, whether hiding wealth in church-backed tax havens or placing it in foreign banks.
