anti-money laundering laws

The War Against Cash, Part I

http://www.slate.com/content/dam/slate/articles/news_and_politics/intelligence_squared/2011/10/111021_IQ2_danielMitchellFW.jpg.CROP.original-original.jpg

This is the first in a two-part series, originally published at International Liberty. ~ Ed.

 

Politicians hate cash.

That may seem an odd assertion given that they love spending money (other people’s money, of course, as illustrated by this cartoon).

But what I’m talking about is the fact that politicians get upset when there’s not 100 percent compliance with tax laws.

They hate tax havens since the option of a fiscal refuge makes confiscatory taxation impractical.

They hate the underground economy because that means hard-to-tax economic activity.

And they hate cash because it gives consumers an anonymous payment mechanism.

Let’s explore the animosity to cash.

It’s basically because a cashless society is an easier-to-tax society, as expressed by an editorial from the U.K.-based Financial Times.


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