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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIMF boss Christine Lagarde pays no tax
IMF boss who caused international outrage when she suggested that Greeks should pay their taxes earns a tax-free salaryhttp://www.guardian.co.uk/business/2012/may/29/christine-lagarde-pays-no-tax
Christine Lagarde, the IMF boss who caused international outrage after she suggested in an interview with the Guardian on Friday that beleaguered Greeks might do well to pay their taxes, pays no taxes, it has emerged.
As an official of an international institution, her salary of $467,940 (£298,675) a year plus $83,760 additional allowance a year is not subject to any taxes.
The same applies to nearly all United Nations employees article 34 of the Vienna convention on diplomatic relations of 1961, which has been signed by 187 states, declares: "A diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal."
According to Lagarde's contract she is also entitled to a pay rise on 1 July every year during her five-year contract.
Why am I suddenly reminded of Leona Helmsley?
elleng
(131,265 posts)and, as I've said elsewhere, is NOT isolated to 'the ruling class,' but to all who work at IMF (and probably World Bank,) which includes many mid-and low-level employees, many here in the DC area.
Neue Regel
(221 posts)But Leona Helmsley in the sense of her attitude, "We don't pay taxes. Only the little people pay taxes..."
You're a bit sensitive to this criticism. Do you work at the IMF, World Bank, or some other "exempted" organization?
elleng
(131,265 posts)Her job provides that she, and other IMF employees, pay no income taxes.
I live in the DC area, worked for the Federal government, am now retired, and pay Federal and State income taxes.
I am 'sensitive' to the erroneous suggestion that Christine LaGarde applies different standards to herself than to others. She doesn't.
roguevalley
(40,656 posts)she is demanding blood from a dying country knowing full well she doesn't pay a dime. when are these arrogant fuckers going to get it that even if its 'legal' it is immoral to expect shit from others that you are not having to do. Don't they even TRY to understand the conflict of appearances? She is a hypocrite with a nice exemption that is in my mind IMMORAL. Corporations also have the 'legal' right to not pay taxes but they are still evil motherfuckers. So is she not to pay taxes and then beat others over their obligations. her 'exempt' status makes her another overly paid leach on society.
And for the record, this believer wants churches to pay too. We all live here and use things and services. NO ONE should be exempt, especially this overly tanned creap.
DJ13
(23,671 posts)dont chastise an entire country in major news outlets for doing the same thing they are.
elleng
(131,265 posts)Greek people, including Greek millionaires, improperly avoid paying taxes they owe. IMF and World Bank employees DO NOT OWE such taxes.
girl gone mad
(20,634 posts)It's okay when elites at the IMF avoid taxes, but it's unacceptable for commoners to do the same? Hypocrites.
Never mind the fact that the average Greek citizen pays taxes at a fairly burdensome rate. It's those in LeGarde's class who avoid the most taxes, but the IMF has no plan go after these wealthy evaders. The IMF was designed to trample the weak and the poor, a tradition it carries on with fervor.
elleng
(131,265 posts)IMF employees do not AVOID taxes; they are not REQUIRED to pay taxes, because of their job/employer. And many of them are what you might call 'commoners.'
'Those in LaGarde's class' among Greek citizens should pay what they owe, and it is up to the Greek government to enforce such.
girl gone mad
(20,634 posts)shelters, legal loopholes or through illegal schemes. The end result is still the same: fewer taxes paid, less revenue collected.
Greece should not bother increasing tax collections in the midst of a depression, least of all when the bulk of the tax money collected ends up in foreign banks. Greece needs to increase aggregate demand as much as possible. Following the IMF's ridiculous and self-serving advice would be further folly.
oldhippie
(3,249 posts)..... trying to explain the difference between avoiding and evading taxes to many of the folks here. They don't want to hear it. The envy, it is strong in them.
elleng
(131,265 posts)I just don't get the 'envy' thing.
roguevalley
(40,656 posts)should be exempt. NO one.
RB TexLa
(17,003 posts)by someone with a political agenda for not paying a tax.
There is a reason this was signed and agreed to by everyone!
orwell
(7,778 posts)...is akin to organized religion as far as taxation is concerned.
Well isn't that special...
Neue Regel
(221 posts)Topic 417 - Earnings for Clergy
For income tax purposes, a licensed, commissioned, or ordained minister is generally treated as a common law employee of his or her church, denomination, or sect. There are, however, some exceptions such as traveling evangelists who may be treated as independent contractors. If you are a minister performing ministerial services, you are taxed on wages, offerings, and fees you receive for performing marriages, baptisms, funerals, etc.
The services you perform in the exercise of your ministry are generally subject to self-employment tax (social security and Medicare taxes). See Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers, for limited exceptions from self-employment tax.
Even though, for social security tax and Medicare tax purposes, you are considered a self-employed individual in performing your ministerial services, you may be considered an employee for income tax or retirement plan purposes. For income tax or retirement plan purposes, some of your income may be considered self-employment income and other income may be considered wages. Depending on all the facts and circumstances, under common-law rules you are considered either an employee or a self employed-person. Generally, you are an employee if the church or organization has the legal right to control both what you do and how you do it, even if you have considerable discretion and freedom of action. For more information about the common-law rules, see Publication 15-A (PDF), Employer's Supplemental Tax Guide. If you are employed by a congregation for a salary, you are generally a common-law employee and income from the exercise of your ministry is considered wages for income tax purposes. However, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal services, are considered self-employment income.
If you itemize your deductions, you may be able to deduct certain unreimbursed business expenses related to your services as a common-law employee on Form 1040, Schedule A, Itemized Deductions. You may need to fill out Form 2106 (PDF), Employee Business Expenses, and attach it to your Form 1040 (PDF), U. S. Individual Income Tax Return. Refer to Topic 514 for information on Employee Business Expenses, and Topic 508 for information on the 2% of adjusted gross income limitation. For your self-employment income (the offerings or fees you receive for performing marriages, baptisms, funerals, etc.), use Form 1040, Schedule C (PDF), Profit or Loss From Business, or Form 1040, Schedule C-EZ (PDF), Net Profit From Business, to report these earnings and related expenses.
girl gone mad
(20,634 posts)The iMF keeps hundreds of millions of people in desperate poverty with their vile and vicious neo-liberal agenda.
kenny blankenship
(15,689 posts)Surprised? We shouldn't be.
socialist_n_TN
(11,481 posts)It's her fucking LECTURING a bus driver in Greece about not paying taxes. That RANK hypocricy. And make no mistake, she's lecturing the bus driver (who probably has taxes taken DIRECTLY out of his check) and NOT the Greek shipping tycoon who can avoid taxes at will.
HiPointDem
(20,729 posts)RB TexLa
(17,003 posts)can't lock up diplomats, IMF employees, World Bank employees, World Court employees, or UN employees up on trumped up tax charges.
Spider Jerusalem
(21,786 posts)accredited diplomats are not liable to pay tax in the countries in which they work by international agreement dating from 1961. As a French citizen Lagarde is no doubt liable to pay tax on her income if she is resident in France for tax purposes; in practise this would mean that she would have to reside in France for 90 days or more of the year. If she doesn't then she's not liable for tax on her income (but this is because no country but the US assesses tax on the basis of citizenship rather than residence).
It remains a fact that the amount of tax payments lost to evasion in Greece are equivalent to the size of the Greek budget deficit and amount to one-third of total taxes and approximately 13 billion in tax revenues (figures per Greek finance minister in 2010).
This is what is known as "attacking the messenger".