25
Feb
08

Saber-Rattling Academic Urges Aggression, Bullying, Sanctions, and Annexation.

Some big government douchebag always wants your money.

Writing for the Financial Times, a professor from the London School of Economics identifies a number of enemy jurisdictions that pose a grave threat to the world. Some of these jurisdictions should be subject to sanctions, he writes, but in other cases he urges much more aggressive tactics, including annexation.What makes his article so interesting is his choice of targets. He is not targeting Iran. Presumably he does not worry about nuclear weapons in the hands of Islamic fundamentalists. Nor is he targeting North Korea, a rogue state that lets its own people starve. Other despotic regimes such as Cuba, Saudi Arabia, Turkmenistan, and Venezuela also get a free pass. Instead, Professor Buiter’s Axis-of-Evil is comprised of places such as Liechtenstein, Jersey, Luxembourg, Andorra, Guernsey, Switzerland, and Monaco.

These jurisdictions, by virtue of their low tax rates and respect for human rights, attract capital from high-tax nations and therefore make it a bit more difficult for politicians in places such as France and Germany to buy votes with other people’s money. Interestingly, Buiter’s penchant for aggression varies depending on the expected level of resistance. He wants little countries such as Monaco and Liechtenstein to be forcibly annexed as part of a tax-motivated Anschluss. But he is much less bellicose in the case of Switzerland, perhaps because every able-bodied male is a member of the militia and possesses a fully-automatic machine gun. And he doesn’t even mention the United States, even though Delaware and Nevada companies are excellent tax havens for non-Americans.

Perhaps it is just a matter of time before he bravely adds America to his hit list. In any event, his article is a revealing glimpse into the mind of a tax-aholic.

Read the whole thing.

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