Echoes of the Bush tax cuts!

Boy does this sound familiar! Well,at least you can’t call them Socialists!

Amplify’d from www.nytimes.com

Pakistan’s Elite Pay Few Taxes, Widening Wealth Gap

A security guard standing at the entrance of a Mercedes Benz dealer in Islamabad.

ISLAMABAD, Pakistan — Much of Pakistan’s capital city looks like a rich Los Angeles suburb. Shiny sport utility vehicles purr down gated driveways. Elegant multistory homes are tended by servants. Laundry is never hung out to dry.

But behind the opulence lurks a troubling fact. Very few of these households pay income tax. That is mostly because the politicians who make the rules are also the country’s richest citizens, and are skilled at finding ways to exempt themselves.

That would be a problem in any country. But in Pakistan, the lack of a workable tax system feeds something more menacing: a festering inequality in Pakistani society, where the wealth of its most powerful members is never redistributed or put to use for public good. That is creating conditions that have helped spread an insurgency that is tormenting the country and complicating American policy in the region.

It is also a sorry performance for a country that is among the largest recipients of American aid, payments of billions of dollars that prop up the country’s finances and are meant to help its leaders fight the insurgency.

Though the authorities have tried to expand the net in recent years, taxing profits from the stock market and real estate, entire swaths of the economy, like agriculture, a major moneymaker for the elite, remain untaxed.

“This is a system of the elite, by the elite and for the elite,” said Riyaz Hussain Naqvi, a retired government official who worked in tax collection for 38 years. “It is a skewed system in which the poor man subsidizes the rich man.”

Read more at www.nytimes.com

 

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Published in: on July 19, 2010 at 11:22 am  Leave a Comment  
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