Pop singer Shakira acquitted of tax fraud, court orders Spain to hand back $70 million

Good news! Soak the rich by the socialist Spanish government failed?

Caveat: I am not familiar with the details of Shakira's case.

"Summary

• Spanish High Court acquits Shakira in 2011 case on appeal
• Court orders Treasury to reimburse her with $70 million, including interest
• Tax agency will appeal ruling, no repayment until appeal ends

Spain's High Court has acquitted ‌Colombian pop star Shakira of tax fraud and overturned the 55 million euro ($64 million) fine imposed in 2021 by the Spanish tax agency, according to a court document seen by Reuters on Monday.

Acting on an appeal ​by the "Hips Don't Lie" singer, the court ordered the Treasury to reimburse her with ​over 60 million euros ($70 million), including interest, Shakira's defence said.

The judge ruled ⁠that authorities had failed to prove that Shakira spent more than 183 days in Spain ​in 2011, as required by Spanish law to be considered a tax resident in the country. ​It does not affect tax years after 2011. ..."

Shakira acquitted of tax fraud, court orders Spain to hand back $70 million | Reuters

Credits: Der Tag beginnt mit NIUS

Shakira (Source)

Die oberen 10 Prozent der Einkommensbezieher zahlen die Hälfte der Lohnsteuer

So oder ähnlich ist das Verhältnis in den meisten westlichen Ländern!

Eine Form der staatlichen Enteignung, wie im Kommunismus nur subtiler und demokratisch legitimiert.

Die Lösung heisst flat tax, ein einheitlicher Steuersatz für alle Einkommen!

Die oberen 10 Prozent zahlen die Hälfte der Lohnsteuer

Gastgewerbe bricht ein: Zum Jahreswechsel die Umsatzsteuer in der Gastronomie von 7 auf 19 Prozent erhöht

So ein typischer Schwachsinn aus der Bananenrepublik D.!

Ein MwSt Satz von 19% is konfiskatorisch und gleicht einer Enteignung! Die anderen Steuern in D. sind auch zu hoch! 

Jeder MwSt Satz über 10% ist höchst fragwürdig insbesondere dann wenn andere staatliche Abgaben auch hoch sind!!! Entweder Einkommenssteuer oder Umsatzsteuer, aber nicht beides als staatliche Einkunftsquelle! Die Geldgier des Staates kennt keine Grenzen!

Ampel wirkt: Gastgewerbe bricht im Dezember ein Die Ampel hat zum Jahreswechsel die Umsatzsteuer in der Gastronomie von 7 auf 19 Prozent erhöht. Das zeigt bereits erste Folgen. Kneipen und Restaurants brechen die Umsätze ein.

Scotland announces new 45% income tax band for high earners and 48% on top earners. Really!

Confiscatory taxation is as stupid as it gets! History is littered with examples where this approach failed! 

Adam Smith is wildly spinning in his grave! A long time ago there was a Scottish Enlightenment!

"... The Scottish government has raised income tax rates for higher earners, widening the gap between what is paid by better-off Scots and by their counterparts in the rest of the UK.

Shona Robison, the ruling Scottish National Party’s finance secretary, on Tuesday used tax raising powers handed to the Holyrood government in 2016 to announce a new 45 per cent income tax band for people earning between £75,000 and £125,140 a year.

The top rate of tax paid by those earning above £125,140 will also rise from 47 per cent to 48 per cent from April 2024. A 42 per cent rate will remain in place for those earning between £43,633 and £75,000 — and the £43,633 threshold will be frozen. ..."

Scotland announces new 45% income tax band for high earners

The average Canadian family spent 45.3% of its income on taxes in 2022

Confiscatory taxes in Canada. Take it from the living! The situation is not better in other Western countries. And what does the taxpayer get in return?

"Summary

• ...
• The average Canadian family now spends more of its income on taxes (45.3%) than it does on basic necessities such as food, shelter, and clothing combined (35.6%). By comparison, 33.5% of the average family’s income went to pay taxes in 1961 while 56.5% went to basic necessities.
• In 2022, the average Canadian family earned an income of $106,430 and paid total taxes equaling $48,199 (45.3%). In 1961, the average family had an income of $5,000 and paid a total tax bill of $1,675 (33.5%). ..."

Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2023 edition | Fraser Institute

Lindner korrigiert verfassungswidrigen Steuerzins

Es gibt auch gelegentlich Positives aus der Bananenrepublik zu berichten!

Wenn der neue Bundesfinanzminister es auch fertig bringen könnte die seit vielen Jahren unverschämt hohe Mehrwertsteuer dauerhaft und deutlich zu senken, würde er Geschichte machen! Die nur für wenige Monate wirksame Senkung von 19% auf 16% in 2020 war viel zu wenig!

Lindner korrigiert verfassungswidrigen Steuerzins Das Bundesverfassungsgericht hatte den Satz für verfassungswidrig erklärt. Im neuen Gesetzentwurf aus dem Bundesfinanzministerium sinkt er von 6 Prozent im Jahr auf 1,8 Prozent. Doch einige Anwendungsfelder bleiben unverändert.

Deutschland ein Hochsteuerland

Deutschland liegt an zweiter Stelle in der EU! Das ist wahrlich kein Grund zur Freude! Das die Deutschen so gerne hohe Steuern zahlen, ohne dagegen vorzugehen, ist sehr absonderlich! 

Wie viele private Initiativen oder gemeinnützige Zwecke könnten von aktiven Bürgern finanziert werden, wenn die Steuern nicht so hoch wären? Der tiefe Staatsglaube und die geringe Neigung selbst Verantwortung zu übernehmen ist kein gutes Zeichen für die deutsche Gesellschaft! Kann der Staat wirklich soziale Anliegen besser erledigen als freiwillig kooperierende Bürger vor Ort?



Grafik: Trotz Steuerreform ein Hochsteuerland

The average Canadian family spent 42% of their income on taxes in 2019

Taxes in Canada and also in Germany are way too high! This expropriation by taxation!

"That’s more than housing, food and clothing costs — combined."

Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2020 edition | Fraser Institute The Canadian Consumer Tax Index tracks the total tax bill of the average Canadian family from 1961 to 2019. Including all types of taxes, that bill has increased by 2,226% since 1961.

Die EU setzt die britischen Cayman-Inseln und Panama auf die schwarze Liste der Steueroasen

Anstelle die Steuern fuer Buerger und Unternehmen deutlich zu senken versuchen die geldgierigen Europaeischen Politiker kleine Laender unter Druck zu setzen!

Die EU setzt die britischen Cayman-Inseln und Panama auf die schwarze Liste der Steueroasen | NZZ: Kurz nach dem Brexit und vor dem Beginn der Gespräche über ein Freihandelsabkommen hat die EU die Cayman-Inseln auf eine schwarze Liste von Steueroasen gesetzt. Grossbritannien hatte dies in der Vergangenheit verhindert. Panama ereilt dasselbe Schicksal.

Missing Constitutional Amendments

In order to establish a society of free, responsible, and self governing individuals following amendments are missing from the US Constitution:

1.       For as long as government runs a central bank the function of this central bank should only be concerned with internal and external monetary stability. Nominal interest rates cannot be set lower than the inflation rate plus some factor (e.g. long-term trend of real GDP growth). The central bank is strictly prohibited from direct or indirect financing of government.

2.       Supreme Court justices should be randomly drawn from a considerable pool of suitable candidates, which ought to include people without judiciary experience or law degrees. Term limits for Supreme Court justices are overdue.

3.       The size of federal government as measured by revenue or expenditures should be limited to a maximum of let’s say 20% of GDP except for extremely extraordinary events. For this purpose, federal government should be defined in a comprehensive way, e.g. including off budget items, Social Security, Medicare etc.

4.       Federal government debt should be limited to maximum of let’s say 30% of GDP except for extremely extraordinary events. For this purpose, federal government debt should be defined in a most comprehensive way, e.g. including promises to future retirees etc.

5.       Federal government needs to completely stay out of providing subsidies to businesses, education, health care, welfare, unemployment insurance, and retirement security except perhaps for the most needy individuals. Free individuals and free markets are capable of handling these areas without government meddling. Besides, if these areas need government intervention at all these areas are prerogatives of the individual states.

6.       Federal taxes should never be confiscatory and should only serve as a source of revenue and not to implement any social or economic policies. Ideally, taxes should be paid exclusively by voluntary choice of free individuals. Confiscatory taxes are defined as cumulative taxes exceeding let’s say 30% of a person’s income irrespective of the form of taxation (e.g. income or sales taxes). The tax code has to be kept very simple. A person’s wealth should be tax free. Businesses should not be taxed.

7.       It is overdue to reign in the many abuses of the Commerce Clause by the federal government and the US Supreme Court. It is quite clear that the original meaning of this clause was limited to commerce in the narrow sense of economic exchange like foreign trade or trade between states.

Revolution From The Top In France

The Last French Revolution Was From The Bottom

The famous predecessor of 1789 that wiped out the Ancient Regime was not least caused by punishing taxation of lower classes in France. This time it is perhaps the affluent citoyens who protest against consfiscatory tax increases imposed by the new socialist French President Francois Hollande. Mr. Hollande appears to be a remanent of the Ancient Regime since he did not learn the lessons of 1789.

Mr. Hollande during his election campaign advocated, e.g. a 75% tax on high income earners and raising taxes on capital gains and household wealth. This is legalized plunder by big government.

A One Man Resistance

French actor Gerard Depardieu in an open letter surrendered his French passport and social security after the French government made derogatory remarks about him. Mr. Darpadieu apparently grew up in humble circumstances before he became a nouveau riche through his career.

Mr. Depardieu told the public that he paid about €145 million in taxes over his 45 year long career and employed about 80 people in his business.

Mr. Depardieu is not the only rich French citoyen to leave France after the imposition of new, confiscatory taxes aimed at the rich citizens of France. Usually, the rich citoyens remain silent as not to attract the orchestrated violence of the mob or for other reasons when they protest, but Mr. Depardieu chose to be more outspoken. Bravo! Something for Hollywood actors to learn from.

Moving Across The Border

Mr. Depardieu moved from France into a small town in Belgium, i.e. Néchin, next to the French-Belgian border ostensibly protesting the latest confiscatory tax hikes. The French government calls him a tax evader, but he is more like a political dissident.

Germany: When Government Incites Crime And Becomes A Receiver Of Stolen Goods

Background

I will not go into much of the details of this disturbing story here, but I may amend later.

In their quest to uncover tax evaders, the federal government of Germany as well as at least one German state government bought stolen digital storage media containing bank customer data, which were illegally obtained from banks in Switzerland. These purchases have been going on for some time.

Government Becomes A Promoter Of Crime

It has been reported that German tax authority officials actively pursued these purchases of stolen goods even by traveling to Switzerland. Switzerland has indeed indicted German tax enforcement officers for doing that.

Would a private person become a receiver of such stolen goods (German: Hehler), this person would surely be indicted by prosecutors.

Is Tax Evasion A Crime?

If tax evasion is a crime what kind of crime is it? First and foremost, your legitimately hard earned money is your property. Therefore, it is one of the highest priorities of any government to exercise great restraint in taxing its citizens.

When government resorts to such illegal and desperate measures to go after tax evaders, then this sure is a sign that taxes in this country are too high or even confiscatory, which in fact they are.

Significant and broadly based tax evasion by tax payers is usually a tell tale sign that the tax burden in that country is too high.

Why do people refuse to give away their hard earned money to the government? Perhaps they feel they are disproportionally affected by taxation. Perhaps, they feel that government is wasting their money or accumulating too much debt.

Except for tax evasion, tax evaders are likely law abiding citizens in most other aspects of their life. Probably, they are not professional criminals.

Voting With Your Money

Political elections in Western democracies happen too infrequent and their outcomes often are unsatisfactory.

Thus, if a person strongly feels unsatisfied with the government and if the tax burden is high then voting with your money (a.k.a. tax evasion) is perhaps legitimate as a vote with the ballot.

Tax evaders risk indictment to express their views.

Confiscatory Taxation: Spain Raises Value Added Tax To 21% By September 2012

It’s Madness

Given the dire economic conditions, it’s insane to raise the value added tax from 18% to 21%. That is a 17% increase. Only two years ago, in July 2010, the previous, socialist government raised it from 16% to 18%.

Spain’s government justifies such an increase with the absurd argument that they are only bringing their VAT tax rate in line with the rest of the European Union. Yes, it is true the VAT tax rate in Germany is 19%, in France it is 19.6%, and in Italy it’s 21%. However, this is typical big government absurdity, when my neighbor raises taxes then me too. By this twisted logic we soon would see VAT tax rates in the 30-40% range. If businesses in the EU would do this kind of price fixing, they would be suit.

Confiscatory Taxation And The Laffer Curve

The top personal income rate is 43% in Spain, the corporate tax rate is 30%. Thus, besides high VAT taxes, Spain is a high tax country.

To use an exaggerated and oversimplified example, the average Spaniard employee pays about 30% in income taxes and soon 21% taxes on everything he or she buys. That is a combined taxation of over 50% of hard earned money. This example does not even include payroll taxes etc.

Any taxation that reaches or exceeds 50% of one’s income is legalized confiscation or theft by big government. Laffer curve analysis strongly suggests that revenue will rather decline in such a high tax environment. Citizens are no fools.

Revealing Exemptions To VAT

I do not know all the details, but the tourism sector enjoys an exemption from VAT in form of a considerably reduced VAT rate of currently 8%, which the new, conservative government now intends to raise to 10%.

Why are there such exemptions like tourism and also for basic foodstuff (VAT rate of 4% in Spain)? One easy answer is that big government knows exactly that tax rates as high as 20% are confiscatory and abhorred by the people, not to mention bad for business. Or is it just a clever move by big government to prevent riots in the street?

A Warning For The USA

In the US, we find a lively discussion of introducing some kind of consumption tax. Even conservative think tanks like the Goldwater Institute here in Arizona are in on this misguided policy advice.

To put it very simply, a domestic consumption tax cannot be implemented without abolishing the personal income tax first. Otherwise, our greedy big government politicians see $$$ signs and revenue.