Tag Archives: Taxes

An Irish engagement with the Greek crisis

To the crucible: an Irish engagement with the Greek crisis and the Greek left

By Helena Sheehan

January 21, 2013 — Irish Left Review, posted at Links International Journal of Socialist Renewal at the author’s suggestion and with her permission — A monumental drama is playing out before our eyes. It is a true Greek tragedy. The plot: A society is being pushed to its limits. The denouement is not yet determined, but survival is at stake and prospects are precarious. Greece is at the sharp end of a radical and risky experiment in how far accumulation by dispossession can go, how much expropriation can be endured, how far the state can be subordinated to the market. It is a global narrative, but the story is a few episodes ahead here.

Greece is the crucible.1 It is a caldron where concentrated forces are colliding in a process that will bring forth either a reconfiguration of capitalism or the dawn of its demise.

Salaries, pensions, public services are falling, while prices and taxes are rising. Massive asset stripping is underway. Water, power, ports, islands, public buildings are for sale. Unemployment, emigration and evictions have brought a sense of a society unraveling. Homeless people wander the streets and scavenge for food in bins or beg it from the plates of those eating in tavernas. If they are immigrants, they are terrorised. Those looking into a horizon without hope either drift into desolation or perform the ultimate decisive act of suicide. Some have done so in private spaces, while others have chosen public places to underline the political nature of their fate, as they jump from heights, set themselves on fire or shoot themselves. In April 2012, Dimitris Christoulas, a retired pharmacist, who felt he could no longer live a dignified life after his pension had been slashed, shot himself in front of parliament. His last words were: “I am not committing suicide. They are killing me.” He urged younger people to fight.

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Pakistan’s economy Plugging leaks, poking holes – Who will pay for Pakistan’s state?

PAKISTAN’S national poet, Muhammad Iqbal, believed the subcontinent’s Muslims needed to unite if they were to prosper. Without a strong sense of nationhood, he wrote, “mountains become straw and are blown away in the wind”.

Poetry and taxes do not often mix. But those melancholy lines grace an analysis of Pakistan’s fiscal plight by Ehtisham Ahmad of the London School of Economics. The country’s tax revenues have collapsed. Its debt is almost certainly unsustainable without outside help. And yet Pakistan does not pull together. “Textile lobbies, the urban gentry, traders and agriculturists, all point to the other and say: Tax that group first, but do not tax me,” Mr Ahmad writes.

The tax authorities can identify a mere 768,000 individuals who paid income tax last year. Even fewer—just 270,000—have paid something in each of the past three years. That is one reason why Pakistan’s tax revenues amounted to only 9.1% of GDP in the latest fiscal year, one of the lowest ratios in the world (see chart). These are exceedingly narrow shoulders on which to rest a nuclear-armed state of 180m people. The culture of cheating starts at the top. Most members of parliament, many of them conspicuously affluent, do not file tax returns.

In the months before an election, due by May, the government of President Asif Zardari of the Pakistan Peoples Party (PPP) is proposing a controversial remedy: an amnesty for evaders. They will be invited to wipe the slate clean with a one-off payment of only 40,000 rupees ($400). The government says it is a quick way to resuscitate the public finances and expand the tax net. Its critics see the amnesty as a boon for politically connected crooks.

Continue reading Pakistan’s economy Plugging leaks, poking holes – Who will pay for Pakistan’s state?

Demands of Canadians – Raise Corporate Taxes, Create Jobs, Raise Wages and Living Standards! Curb Corporate Power!

Raise Corporate Taxes, Create Jobs, Raise Wages and Living Standards! Curb Corporate Power!

The CPC (Ontario) has condemned the Ontario Budget, delivered yesterday, as a massive attack on working people and the poor that will destroy tens of thousands of jobs, drive down wages, pensions, incomes and living standards, and which, combined with the austerity measures in Thursday’s federal budget, could push the province into another deep economic recession.

The Executive Committee of the CPC (Ontario) also warned that the threat of legislated wage controls is a dangerous attack on free collective bargaining and on civil and democratic rights.

Continue reading Demands of Canadians – Raise Corporate Taxes, Create Jobs, Raise Wages and Living Standards! Curb Corporate Power!

Impact of OWS

– Finally, Higher Taxes for the 1% — Is Occupy Behind Governors’ Moves to Make the Wealthy Pay Their Share?

By Sarah Jaffe

Is the narrative around taxes finally shifting? Thanks to heavy public pressure, Governors Cuomo and Brown propose taxing their states’ ultrarich. …

Read more » AlterNet

Hopelessness to doom: Pakistan’s journey

Pakistan

by Malik A. Rashid

BBC reported, “The US is so concerned about security in Pakistan that it is considering plans to enter the country to prevent extremists getting hold of nuclear material”. According to Senator McCain, Pakistan’s ISI has connections with the Haqqani network. In his confirmation hearing Lt. Gen. John Allen said he is aware that explosive devises used against American forces in Afghanistancome from Pakistan. Adm. McRaven thinks Pakistanis know where Mulla Omar is. So, the US-NATO has enemies in Pakistan in their cross-hair.

But the war is not the root cause of the predicament Pakistan finds itself in. Declared #12 on the list of failed nations, Pakistan is the 3rd most dangerous country for women. Out of 70 million between 5 to 19 year old Pakistanis, only 30 million go to school. On education and health care together, government spends about 1% of the GDP. Pakistan’s rulers prescribed a low quality education for their public school system to keep commoners from joining the ranks of army officers and bureaucrats.

US have cut aid to Pakistan. Installment of IMF’s loan was declined because the government could not raise taxes. Pakistan’s economy grew by 2.4% in 2010-11, slower than Somalia’s economy which grew 2.6%. Population of the cities continues to rise; so does joblessness.

Since 75% of supplies to US and NATO troops in Afghanistan will be re-routed through North of Afghanistan by the end of this year, not only the war has turned unrewarding for Pakistan’s rulers, it challenges their power and state’s existence.

Army relied heavily on proxy-warriors to influence other countries in the region and manipulated international aid through terrorism, while the generals indulged in enriching themselves. The business empire of the Military Inc. continued to grow at the expense of dwindling electricity supplies while millions of citizens fell below the poverty line. A conflict with the world-powers has shaken the brazen and brutal power structure of Pakistan. …

Read more → ViewPoint

Pakistan’s new economic agenda

by Manzur Ejaz

Then let’s start. Let’s take the economic agenda first:

1. Feudalism should be abolished completely

2. It will be a Social Democratic Economy…Public sector along with largely private enterprises. Public sector should be expanded to provide universal education and health services….

3. Everyone pays taxes to get services. At least everyone files taxes whether rich or poor. Role of indirect taxes should be minimized which is regressive but main source of government income. In a mixed economy taxes are the only instrument to distribute wealth on equitable basis. It is the only way to fund government operations without borrowing. And inflation or rising prices can only be checked if government borrowing is brought down to zero.

4. Electricity and gas should be supplied on continuous basis to run the industry and trade smoothly.

5. People living beyond their means and having wealth beyond known sources should be prosecuted and brought to justice.

6. End of monopolies or they should be regulated wherever necessary. Monopoly in media should be ended: Like the US one group should not have major newspaper in more than one region.

Read more : Wichaar

Many in Pakistan Fear Unrest at Home

By JANE PERLEZ

ISLAMABAD, Pakistan — Protests over crippling prices and corrupt leadership are sweeping much of the Islamic world, but here in Pakistan this week, the government blithely dismissed any threat to its longevity or to the country’s stability.

Prime Minister Yousaf Raza Gilani insisted that Pakistan was not Egypt or Tunisia. “Our institutions are working and democracy is functional,” he said. The economy, while under pressure, is not in crisis.

But while Mr. Gilani appeared unruffled, diplomats, analysts and other Pakistani officials admitted to unease, and conceded that Pakistan contained many of the same ingredients for revolt found in the Middle East — and then some: an economy hollowed out by bad management and official corruption; rising Islamic religious fervor; and a poisonous resentment of the United States, Pakistan’s biggest financial supporter.

If no one expects Pakistan to be swept by revolution this week, the big question on many minds is how, and when, a critical mass of despair among this nation’s 180 million people and the unifying Islamist ideology might be converted into collective action.

Some diplomats and analysts compare the combustible mixture of religious ideology and economic frustration, overlaid with the distaste for America, to Iran in 1979. Only one thing is missing: a leader.

“What’s lacking is a person or institution to link the economic aspirations of the lower class with the psychological frustration of the committed Islamists,” a Western diplomat said this week. “Our assessment is: this is like Tehran, 1979.”

Mr. Gilani is right in that Pakistan held fairly free elections three years ago, when the democratically based Pakistan Peoples Party, led by President Asif Ali Zardari, won.

But the return to civilian government after a decade of military rule has meant little to the people because politicians have done nothing for voters, said Farrukh Saleem, a risk analyst and columnist in The News, a daily newspaper.

As it has been for all of Pakistan’s more than 60 years of history, Parliament today remains dominated by the families of a favored few, who use their perch to maintain a corrupt patronage system and to protect their own interests as Pakistan’s landed and industrial class. The government takes in little in taxes, and as a result provides little in the way of services to its people.

“Ninety-nine percent of Pakistanis are not affected by the state — it doesn’t deliver anything for them,” Mr. Saleem said. “People are looking for alternatives. So were the Iranians in 1979.”

There is little question that the images from Egypt and Tunisia are reverberating through Pakistani society, and encouraging workers to speak up and vent frustration in ways that were unusual even three months ago.

“There’s no electricity, no gas, no clean water,” said Ali Ahmad, a hotel worker in Lahore who is usually a model of discretion. “I think if things stay the same, people will come out and destroy everything.”

When a young banker in a prestigious job at a foreign bank was asked if Pakistan could go the way of Egypt, he replied, “I hope so.”

At the core of Pakistan’s problem are the wretched economic conditions of day-to-day life for most of the people whose lives are gouged by inflation, fuel shortages and scarcity of work.

They see the rich getting richer, including “the sons of rich, corrupt politicians and their compatriots openly buying Rolls-Royces with their black American Express cards,” said Jahangir Tareen, a reformist politician and successful agricultural businessman.

Food inflation totaled 64 percent in the last three years, according to Sakib Sherani, who resigned recently as the principal economic adviser at the Finance Ministry. The purchasing power of the average wage earner has declined by 20 percent since 2008, he said.

Families are taking children out of school because they cannot afford both fees and food. Others choose between medicine and dinner.

A middle-class customer in a pharmacy in Rawalpindi, the city where the powerful army has its headquarters, told the pharmacist last week to sell him only two pills of a course of 10 antibiotics because he did not have enough money for groceries. …

Read more : The New York Times

Professional Beggars at their best … but .. Beggars are not choosers!

Vice President Joe Biden is the latest high level U.S dignitary to visit Pakistan. As the series of such high profile visits continues, one wonders what actually transpires in such meetings and what kind of assurances are given from both sides to each other. In this episode of Reporter, Arshad Sharif tries to find out what PM Gilani meant when he said that he has given assurances to Joe Biden that practical steps will be taken to resolve all the difficult problems.

Courtesy: Dawn News (program Reporter with Arshad Sharif)

Source- You Tube Link

Pay your dues

WASHINGTON DIARY: Pay your dues

by: Dr Manzur Ejaz, USA

Courtesy: Wichaar.com, September 1st, 2009

Some critics argue that paying taxes in Pakistan is counterproductive because it further enriches the corrupt ruling classes. One can argue that accountability for tax revenues is a very low political priority because the most vocal and powerful sections of society do not pay their fair share.

Continue reading Pay your dues