0646 - TaxationReflection

As we often point out to you hapless Readers, one of the curious and (so far) untaxed benefits of living in Anguilla is the ability to see the curious reflections of events up North in the bright mirror of Anguilla. And, of course, the reflection works both ways. In the States, despite big deficits, the Congress has just pushed through more tax cuts, but not without criticism. In Anguilla, where taxes are even more disdained than at a Republican convention, a big new tax bill has arrived, to a chorus of cries of pain from the affected. The Anguillian move has an aspect worth noting by those up North worried about re-election. You see, while the benefits of the Bush tax cuts (as they are usually called) accrue largely to the extensively rich, the Anguillian tax increase does not fall on Anguillians. There can't be a voter rebellion!

Examined in detail, as the thoughtier papers have, the new Bush tax cuts mostly extend cheap rates for capital gains and dividends. [For reasons never clear, the tax cuts are only for long-term capital gains, short-term gains being evil speculation. You are supposed to have long term family money, you see.] The benefits, not surprisingly, fall to the top one percent (or tenth of one percent] of taxpayers. Like, who didn't know that? In Anguilla, Expatriates (Expats) have to get a solemn document called an Alien Landholder Licence in order to buy property, and pay a fat 17½% of the purchase price for their document. For their fat fee, the Expats got the right to rent their properties should they wish, for a stipulated US$1200 a year extra fee. The new law retroactively changes this deal, adding bigger annual property taxes and much bigger fees for the ability to rent. The Expats are shocked, shocked. The new rental fee is like the U.S. tax cuts, though, because the bigger the house to rent, the less, proportionately, the fees.

Now, note the brilliancy of the Anguillian method. The Expats who are hurt can't vote. Isn't that smart? The U.S. Congress should learn from this, and apply it to sensitive problems like illegal immigration. Here, the Republicans are split and worried to death. They don't want to lose the Latino vote, but there are loud cries about the half million or so illegals arriving every year from the South. Further, some of the hard-shell Repubs don't like all these deficits. Wake up, fellows! Note the beauty of the Anguillian technique: pass a tax that only falls on the illegal immigrants. No vote, no political pain. Copy freely: no copyright protection here.

Now, before we get our usual e-mails calling the OO and Staff "Liberals" [the far right insult of insults] we want you to know that this column supports the Bush-McCain-Kennedy "Comprehensive" immigration reform. We think that "Security" does not reside in warrantless and unConstitutional spying, but in sealing the border. Every time the OO has to take off his shoes at an airport, he considers taking the over-the Southern border route, but there doesn't seem to be any business class in the trunks of the smugglers. [We refer to trunks – boots –of automobiles, not to bathing suits.] If the U.S. can't keep a lot of poor Mexicans from sneaking in, plus, no doubt, a few al Qaeda members, well, we had better cut back on our adventures abroad.

And just to keep our good Liberal credentials polished, we note the recent UN condemnation of endless detention at Guantanamo, and the same demand from the British Attorney General. The U.S. Attorney General, no close reader of the Constitution and its Bill of Rights, seems to approve of endless holding of bin Laden's driver. And then, of course, Cheney believes in torture. This is shameful, is it not? Get ready to vote while you can.

Next time: T.B.A. [OO #647]

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