Money, like water, is fluid and not always controlled. In Brazil, for example, the corporate tax rate is 34%, among the highest in the world. One would hope so much money would flow to the public’s benefit. Instead, it has been lost down a rat hole of corruption, leaving the country in turmoil. (“Corporate Brazil Wants to Breathe Again.” Fabiola Moura et al, Bloomberg Businessweek, May 16-22, 2016 pg. 29.)
Courtesy of fightagainstcrime.co.za
Like tax dollars, donating to a charity isn’t always a reliable way to redistribute wealth, either. US Government regulations have made it difficult to direct assets to places where they are needed. (“Why Banks Are Cutting Off Charities,” by Gavin Finch and Edward Robinson, Bloomberg Businessweek, May 16-22, 2016 pgs. 18-20) Banks are coming under increased scrutiny as our bureaucrats attempt to cut off pipelines to terrorists. “U. S. authorities have levied billions of dollars in fines against Standard Chartered, HSBC Holding and BNP Paribas, and reports out of London say that 200 to 300 charitable organizations have had their accounts canceled” or the transfer of their funds have endured long delays. (Ibid pg. 18.)
Banks argue that when a country is at war, financial institutions are unable to guarantee money will reach its intended destination. That’s a reasonable argument when we see that Brazil, a nation at peace, is unable to keep track of its revenue
Unfortunately, tightening regulations on money transfers means people living in areas disrupted by war or natural disaster have few lifelines to count on. Christian Aid, a long established charity, has been a victim of too much regulation. Last winter the charity attempted to send blankets to Iraq. The aid didn’t arrive until spring. (Ibid pg. 18.)
One can only hope the well-intended people who made this mess will find a way to clean it up. Until they do, not all the good will nor charity in the world is likely to help destitute people when and where they need it.
