Posted on 09/01/2012 3:45:55 AM PDT by 1010RD
BUENOS AIRES, Argentina (AP) -- Argentina just made it more expensive for its people to use credit cards outside the country, and more dangerous for cardholders who aren't paying all the taxes they should.
SNIP...adds a 15 percent tax every time people make a purchase outside the country using a card issued by an Argentine bank. Another requires the banks to report every credit card purchase, home or abroad, to the tax agency.
SNIP...increasingly tight currency controls and shelter their money from soaring inflation. Purchases outside Argentina using peso-denominated cards soared 48 percent in June compared to the year before, obligating the central bank to send $289 million out of the country in just one month. Overall capital flight soared to $23 billion in 2011.
AFIP chief Ricardo Etchegaray, the government's top tax collector, presented the moves as populist measures that would only affect the wealthiest Argentines SNIP... But a closer look shows the measures go much farther, giving the government powerful new tools to combat widespread tax evasion.
SNIP... Since November 2011, Argentina's government has sought to stem capital flight by closing down nearly every avenue people have to legally trade their inflationary pesos for U.S. dollars. The black-market peso price has spiked as a result, trading now at 6.37 pesos to the dollar, compared to the official rate of 4.65. That 37 percent gap represents what people with undeclared pesos have to lose in order to convert their cash to dollars inside Argentina.
Credit cards, meanwhile, are paid at the official rate, and many cardholders have figured out ways to use them to avoid this loss. The 15 percent tax raises the effective cost of purchases to 5.35, reducing the gap by nearly half.
(Excerpt) Read more at hosted.ap.org ...
America's socialists thank you.
The USPS won't stop issuing or start tracking purchases of its money orders because of the illegals (sending money to Mexico)....
I knew a guy who dealt in rebuilding heavy building equipment and selling them overseas. He used cash everywhere he could. So much so that he was regularly audited by the IRS, and when they complained about his use of cash, he told them “If you don't want me to use cash, then quit printing it!”
Wow. That’s really going to help the Argentine economy.
What socialist program any where at any time has ever helped the host nation’s economy?
Socialism is parasitism in which the parasite feasts off the host while convincing the cells it’s good for them.
Asuncion, Paraguay. Argentina’s future financial capital.
yep, but this is hardly the worst thing they have done
I do my utmost to avoid the sin of schadenfreude, but sometimes I slip into hoping the New Rome/Washington DC and environs become as prosperous as any other rat-made Utopia like Detroit.
Santayana saw it coming centuries ago.
As populations in a democracy (or republic, if you prefer) - and the governments that pander to them - become increasingly corrupt, votes are awarded to the bidder who offers most in terms of cash and benefits.
This eventually breaks the bank, such that the national administration becomes a kleptocracy which has to struggle to find additional ways in which to steal from the populace.
In the end, government interference in every aspect of national life brings business and commerce to a grinding halt, the goose that laid the golden eggs is slaughtered, and the whole house of cards comes crashing down.
This is the pattern for Marxist takeover which Obama is pursuing, and with another four years of his regime the pattern will be complete.
When I read about Jews who waited to really see if Hitler meant it I wonder how foolish could they be. Now, I’m watching history unfold before my eyes. It’s the “rich” this time, but the goal is the same. At this point you’ll be called paranoid, irrantional, etc.
But, there are thousands of people in this administration and country who would, under the proper approbation and incentive, shovel a human being into an oven. All for the greater good.
South Africa doesn’t want whites leaving the country with money. A SA merchant told me they track everything. He said, “If you’re white and you think it will be safe to live in SA a generation from now, you’re crazy. So, when I buy something of value, I buy a genuine article and a fake. The fake goes back to South Africa. The genuine article comes to America.”
cashless economy mark o da BEAST !!!
Another requires the banks to report every credit card purchase, home or abroad, to the tax agency.
Take a look at what happened when the totalitarians took over Zimbabwe.
Cash at coin shows are the way to go at least for now until they put a cap on cash purchases like they tried to before. Most of the European countries have cash caps. The cash economy is becoming increasingly decoupled from the tracked/registered economy. I would also think that off shore non- bank storage facilities for gold and equivalent stores of value will become popular for Argentine and other oppressed peoples, like US.
Count me in FRiend. I’m working doubletime to see them lose. I’m behind enemy lines. I live in America’s North Korea - Cook County Illinois.
Count me in FRiend. I’m working doubletime to see them lose. I’m behind enemy lines. I live in America’s North Korea - Cook County Illinois.
Socialism is like a rigged game where basically everyone is forced to pay into a pot whose dividends are basically collected by those closest to the government.It doesn’t help the poor,it doesn’t help those who funded the government by buying its bonds and it never stops trying to monitor how much money it can or should extort.
It amounts to what Californians are getting nowadays in terms of government services and what they used to get before the Dems took over completely.A socialist government never really does much in terms of producing adequate schools,providing relief or fighting urban blight.
Coming here soon to the US.
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