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SOVEREIGN MAN

Italy to launch Skynet tax collection system after 197% YoY borrowing increase

March 21, 2012
Santiago, Chile

This is something out of an Orwellian science fiction movie.

uls rnb5wm4 Italy to launch Skynet tax collection system after 197% YoY borrowing increase

The Italian tax authorities are now field testing a new system called ‘redditometro’, a database that automatically collects and analyzes taxpayers’ tax data vs. spending data based on automated collection of credit card and banking information.

For example, if the credit card reports show that you have an expensive gym membership… or perhaps you bought too fancy of a mobile phone, then the system will flag you if your annual tax liability isn’t commensurate with such spending habits.

Big Brother would be proud.

Preliminary results showed that a full 20% of Italian taxpayers will be initially flagged, much to the delight of agency director Attilio Befera. According to Befera, “We have €120 billion of tax evasion, and to cope with this emergency, we need to take emergency measures…”

Naturally, the way to deal with fiscal urgency is to treat everyone like a suspect. Befera has dismissed criticism from privacy groups, wrapping himself up in a blanket of duty and righteousness–’desperate times call for desperate measures’ and all that nonsense.

It’s the same rationalization you see with these lowlife government agents who molest children at airports; they look in the mirror each morning and convince themselves that they’re keeping the country safe from criminal terrorists. Their mission is noble… and that justifies the means.

Italy is in a world of hurt, no doubt. Despite all the talk of austerity and eliminating the budget deficit by 2013, recently released central bank figures from Banca d’Italia showed that the 2011 state budget balance actually deteriorated by 11.49%.

Moreover, the first numbers released so far for this year show a whopping 197% increase in central government borrowing requirements from January 2011 to January 2012. Hardly the right direction.

Throughout it all, Italy’s public debt has been steadily rising and is now closing in on 2 trillion euros, much larger than the country’s economy. Meanwhile GDP actually shrank in the 4th quarter of last year by an annualized rate of 2.6%.

In typical form, the government is sticking it to the people. Buying Italian bonds has become an issue of patriotism with strong calls and intense public pressure for citizens to plunk down their hard earned savings and bail out the government. They even have footballers and celebrities endorsing government bonds.

On the flip side of this coin are the Big Brother financial tactics– shaking down every last citizen based on a computer algorithm’s judgment of their spending habits. Given that one of the categories that the tax authorities are looking at is investment spending, buying Italian bonds may very well, in fact, get people flagged by Skynet.

If you step back and look at the big picture, this system is truly mind boggling. For years, politicians have been running wild, showering themselves with power and privilege at taxpayer expense.

When the magical fairy dust ran out and it became time to pay the toll, they’ve made it a patriotic issue for society to bail out their malfeasance, and are now proceeding to milk the people dry through Draconian tax policies and collection schemes.

Serf. Slave. Milk cow. Pick your metaphor. Their privilege, our expense. It’s an absolutely absurd system that’s ripe for change.

About the author: Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

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Comments on this entry are closed.

  • Ciberbiz

    Nobody ever mentions the 400 Mazeratis that the Italian government parasites need to move around in

  • John

    There are very few words that disgust me as the word ‘patriotism’. It is not our ‘duty’ to fight other mens’ wars and pay off their debt. My loyalty is to my family and those I call friend.  It is my hope that one day it becomes an obsolete concept.

  • Ciberbiz

    of course nobody mentions the 450 Mazerati motorcars that the government parasites need in Rome

  • Rod

    Hmmm…. maybe an influx of Italian Bitcoin users in the near future, along with online barter houses and alternative currency arrangements?

    Italy will probably follow up with something akin to Sweden’s recent announcement that it will be doing away with paper money to avoid cash transactions.

     

  • poorhardworker

    I can only hope that the US government doesn’t find out about this…and, yes, I suspect they already know.  At least we know what is in store for us…

  • Kigeleon

     I live in Northern Italy and I can tell you that it is very very bad here. People are frightened to breathe much less go out and spend money. Business has been cut in half and many places have closed. The police are highly visible, making up any and all excuses to give you an outrageous fine. (One example, if you have a few at the local bar, but were sensitive enough to leave your car at home as not to drink and drive, better not drink and WALK either, because they can stop you and fine you for weaving while walking.) Meanwhile there’s another type of patrol called the Finanza. They stand by the side of the road with a little stop sign on a stick and flag you down at which point you’re suppose to pull over. They target high end cars specifically and once stopped, they can go through ALL of your financial records, bank, etc, and even your home to see what you own/don’t own.
    The banks are doing their part by reporting if you withdraw over a certain amount, I believe it’s a little under a grand. Plus lots of people’s accounts were converted from savings to checking overnight and they can now withdraw taxes directly from that checking without your knowledge, based on..,well I’m not sure what the hell they’re basing this on, seems completely arbitrary to me! If that isn’t enough they are also raiding resort type tourist towns killing business along with the tourist trade!
    Although Monti’s new changes are groundbreaking, they fall short by not taking into account the culture of Italy itself; Over 35? You will NOT find a job, older folks need not apply and due to the lack of many modern time saving ideas/appliances, -think 1950s America,- to have any type of life in Italy almost requires that one person stay home, usually the woman, making almost half the population unemployable. His plan also does not seem to address infrastructure, (one must spend half the day in a post office to pay a simple utility bill or purchase items from a catalog, forget about big problems like the trash or immigration!) nor does it create opportunities and incentives to grow Italy’s economy.

    And now of course SKYNET!

    In short, the economy is being slowly strangled in every way and people’s lives are being ruined. For the rest of us squeaking by and living with the daily dread of the OTHER shoe falling, better to walk softly and HIDE, because they’ve got the biggest stick!

  • Glissando Remmy

    Hey Simon Black, you sound just like me. If I didn’t know better I would have said… it is me! Oh well, when I don’t wear my cap, which slows me down a bit, I can cover Eastern Europe in just about two and a half months, round trip. Right now I’m writing from Vankong – BC, Canada. If you ever pass through here you’ll understand. Now is your time to read:  

    http://citycaucus.com/2012/03/something-is-rotten-in-the-state-of-sweden/#comments

    My name is Glissando Remmy, but most people call me… Glissando Remmy! :-)

  • Nati

    They should start first by connecting the Motor Vehicles Office and the Boat Registration Office with the Tax Office! This way they would target real serious tax evaders not the little guys!

  • anon

    Ireland, Greece, now Italy on the rack to pay bankers back for corrupting government kleptocrats. It would be laughable if it weren’t so sad.

    Simon, your posts are starting to get pretty edgy. Good for you.

    PS. Just thought I’d mention, the expression is milch cow, not milk cow. 

  • Hiday_happy

     i want to always go thailand..because it is the best place i ever seen around the world…white person is arrogant..right?they dont want to talk to us

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