Tuesday, May 29, 2012
IMF head Christine Lagarde pays no taxes while critical of tax evaders
Christine Largarde angered Greeks by suggesting they should pay their taxes. While Greeks are reputed to be skilled tax evaders Lagarde herself pays no taxes on her salary and benefits from the International Monetary Fund.
Lagarde's salary is 467,940 dollars per year as head of the IMF but she also receives 83,760 dollars additional in allowances. Lagarde receives more than Barack Obama's salary but he pays taxes on his.
Aricle 34 of the Vienna convention on diplomatic relations says:: "A diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal." Lagarde is also entitled to a pay raise every July 1st.
Employees of these international agencies also receive dependent allowances, rent subsidies, education grants for children, travel expenses and subsidized medical insurance. Some of the IMF benefits can be traced back to U.S. influence. The IMF was created in 1944 at Bretton Woods. U.S. officials won the argument for higher salaries over British delegates. The famous economist John Maynard Keynes opposed the higher salaries. However, Keynes was well enough off he would not need one! The justification of the higher salaries was to attract talent. For more see this article.