The latest report on tax comparisons within the USA has been released. A report from Attom Data shows just how nuts things are becoming with regard to taxes. Property taxes have become really insane in the North. The average annual property tax bill in Alabama in 2016 was $776 compared to the the highest average is New Jersey where it stands at $8,477.

Now filter in the State Income Taxes and what emerges is human nature. For all the people who complain about multinational companies moving offshore and then deny that it is tax related and try to characterize that as simply labor is cheaper, need to look more closely. The multinational companies I restructured we looked at the whole picture. Wages were a small part and only one component. What was the amount of social taxation on top of the wages, property taxes in a region, and then the corporate tax. Ger – it looks like the individual is making the same analysis.

The net migration of people within the United States mirrors the same thing taking place corporately on a global scale. They are leaving the highest taxed states and moving to the lower taxes states. Taxes are more than just what you pay, they push up the cost of living because everyone is paying a higher tax rate. I took a friend out with his family down from NJ and the bought ice cream cones. The bill was about half that of what they pay at the Jersey shore. I said see: high taxes ripple through everything within the economy raising the price of everything you buy. The net bottom line – taxes rob much more of your disposable income than anyone actually attributes to government directly

The International Monetary Fund (IMF) in Washington has published a Working Paper on “de-cashing” the economies and the implications. This paper clearly demonstrates that this is the direction we are headed into. It provides advice to governments who want to join in the latest thing – abolishing cash. IMF-Analyst Alexei Kireyev recommends in his conclusions:

Although some countries most likely will de-cash in a few years, going completely cashless should be phased in steps. The de-cashing process could build on the initial and largely uncontested steps, such as the phasing out of large denomination bills, the placement of ceilings on cash transactions, and the reporting of cash moves across the borders. Further steps could include creating economic incentives to reduce the use of cash in transactions, simplifying the opening and use of transferrable deposits, and further computerizing the financial system. 

 

The paper does not advocate eliminating cash. It merely goes through the plus and minus to such a policy. While governments are pressing this using terrorism as the excuse, you do not eliminate the entire monetary system of the world to even catch 100 terrorists and their camels. This is all about the collapse in socialism and the desperate need to raise money.

IMF De-Cashing Paper