Maxiavelli: Demagogy Tax Evasion and Tax Avoidance

Euro Bills (Source: Trend online) 

Politicians have run out of imagination. They have practically given birth to the ongoing economic crisis and now, since they don't know how to get us all out of it, they are desperately on a rich hunt. 

Last week, the European Union announced that "tax evasion" is costing the union €1 trillion (then it added the demagogic detail: more than it spent on health care in 2008). The MEPs immediately called for tax havens to be blacklisted - although they refuse to blacklist Hezbollah as a terror group. Ireland was called a tax haven. Bank secrecy is in peril. This populist anti-evasion measure was prompted by the news that some "Greek and French politicians hold secret Swiss bank accounts". 

We would like to refrain from mentioning the obvious fact that Mr Durão Barroso is already preparing his political future. We would also like to refrain ourselves from accusing MEPs of throwing sand at our eyes. And we would most certainly like to avoid accusing PM Cameron of demagogy...

A tax haven (a legacy from Ancient Greece) is a low tax jurisdiction created by politicians. Clients that have money in offshore accounts, do so because they wish to enjoy certain advantages (both financial and legal): privacy; low taxation (which differs from "no taxation"); easy access to deposits; protection against political and financial instability. Tax havens are perfectly legal. 

Tax evasion is escaping one's duty, or responsibility, to pay taxes; and it falls into the category of money laundry.

Tax avoidance is dodging taxation (in one's native country), through legal dispositions; meaning that an individual/entity will pay less taxes than a common citizen, but will pay them nevertheless. 

This being said, when politicians mix an illegal concept with an legal one; and play with such words (knowing well that most of the electorate can't tell the difference between tax evasion and avoidance) they simply pretend to be doing something, while certainly avoiding more pressing issues - e.g. ravaging unemployment rates; Islamic terrorist activity (ranging from funding, recruiting, to terror acts) in European territory; the rise of the far right; reform of the Welfare State; passing gay marriage laws without direct popular vote, etc. 

Mr Barroso and his fellow Euro-politicians claim they want to tackle tax evasion: are they actually confessing that prostitution, drug and arms dealing, and alike will finally be taxed? Are they confessing that they actually know who and where these people are and, that there is political will to go after them at last? 

If the EU is not speaking of these tax evaders; then it must be speaking of those lawmakers whose wealth is deposited in tax havens and, contrary to what the law says, forgot to declare those "secret" accounts when they began serving in the public sector. But going after companies that make a proper use of the law (a law made by politicians) and abide by it; going after countries that earn their income, and develop themselves, by being fiscally attractive is simply nonsensical. 

If politicians want to address the tax issue they will need to sift evasion from avoidance. 

If they wish to attack evaders then they will have to start by demanding total fiscal transparency from all politicians and public servants first, as a sign of good will. Then move on to the rest of the lot (panderers and drug dealers included)...are they politically prepared for it?