Some historical and global examples of tax resistance →
Nicaragua →
in 2018–19 →
Theódulo Báez Argüello
Some tax resistance news of note:
I’m seeing some signs of organized tax resistance as part of the ongoing protests in Nicaragua, which are aimed at the unpopular policies and the general repressiveness of the Sandinista government:
Attorney Julio Francisco Báez has produced a video for Nicaraguans who want to participate in tax resistance.
When we talk about civil disobedience in the Mercado Oriental, we are talking about not paying city taxes, not paying Conmema [vendor fees], not paying trash, not paying any tax that has anything to do with government entities.
First, as disobedience, and second, because it is prioritizing the salaries of the workers.
Of course [we fear reprisals].
We know that this dictatorial government always takes reprisals against anyone who rises up.
The merchants are afraid.
I am afraid.
It’s normal, but in this moment we have to put aside any fear of economic loss.
Student protest leaders called for tax resistance and boycotts of businesses owned by the ruling family as part of a nonviolent resistance campaign.
Alex Tabarrok has an amusing post demonstrating the sort of magical thinking that progressives sometimes have about taxes and government spending.
Some people every year get it into their heads that it would be a good idea to donate money to the U.S. government to help it pay down the national debt.
That debt stands at something like $21,000,000,000,000, so those donations, though they amount to millions of dollars a year (go figure), only pay down something like 0.00001% of this amount.
People may be wising up, though.
These voluntary contributions seem to be sharply down this year.
There’s an interesting trend suddenly emerging in which consumer brands are trying to get a public relations boost by taking action against the government or stepping in to replace it.
In these cases: Country Time Lemonade offering to provide free legal assistance to children who are fined or otherwise harassed by The Man for setting up lemonade stands, and Domino’s Pizza filling potholes that have gone unfilled by the ostensibly responsible governments.
Under the Jacob Zuma regime in South Africa, the tax agency became so corrupt and unwilling to confront tax evasion by political elites, that a country with high “tax morale” (relative willingness by citizens to pay taxes voluntarily) has now become one in which “more and more South Africans have simply stopped paying their taxes…
In the eyes of many experts, the government’s — and the country’s — ability to right itself is at stake.”
Breizh-Info reports on the craze of destroying traffic ticket issuing bots in France.
While the Bonnets Rouges of Brittany probably deserve some credit for getting the ball rolling on this, the acts have spread to other regions of France.
And “with rare exceptions,” says the reporter, “the culprits are never found or denounced.”
A peace activist convicted for his role in a demonstration against the Navy base being constructed on Jeju Island has refused to pay his fine, opting to serve 46 days in prison instead.
Links have been piling up in my bookmarks as I spent
poring through
back issues of The Mennonite.
International Tax Resistance News
A new law in Samoa requires previously untaxed church
ministers to pay income tax. Many, including those from the country’s
largest church,
are refusing to pay.
The United States government has begun
denying passports to people with large tax debts.
If you’re one of the 362,000 or so Americans who owe more than $51,000 and
you haven’t entered into an installment payment plan (I’m one of those),
you will likely soon find that you cannot successfully apply for or renew
your passport. While the government also has the legal authority to revoke
existing passports from such people, it is not yet exercising that
power.
Guerrilla electricians in Greece continue to
reestablish electric power
to households who have had their power cut off for inability or
unwillingness to pay the state utility monopoly’s bills which have been
inflated to support the state’s austerity budget policies.
Veterans of the successful campaign to abolish the
“écotaxe” in Brittany held
a celebratory picnic
on the anniversary of the destruction of one of the highway portals that
would have enforced the hated tax. In part the picnic was meant to show
solidarity with those who had been convicted of criminal charges for the
parts they played in destroying such portals, and in part it was meant as a
show of strength to let the government know they would not tolerate any
attempts to reestablish the tax.
The increasing use of traffic-ticket-issuing cameras worldwide as a
government revenue booster has led to a rash of direct action by the victim
population. This usually takes the form of destroying, disabling, or
blocking the cameras. Here are several recent examples:
Launched on as another variety of civic struggle against the dictatorship, the proposal to carry the thesis of civil disobedience to the extreme of applying a “tax strike” is still in force, but has not yet switched on, except in the Mercado Oriental.
On that date, the Academy of Sciences, and the Academy of Legal and Political Sciences, called for “civil disobedience as a national imperative to be put into operation immediately,” inviting employers, workers, students, and taxpayers to immediately suspend the payment of taxes to DGI, DGA, and city hall, in particular “withholding of Income Tax from salaries.”
Although the call for tax resistance enters the popular imagination as a civil form — and for that reason a legitimate one — of resisting the regime of Daniel Ortega, neither businesses nor individuals have responded with determination to the proposal, from fear or from caution.
Caution as demonstrated by the sources consulted for this article, who requested anonymity as they explained that people, business-owners and managers in particular, are afraid that the tax administration will fine them or, worse yet, temporarily take over operation of their companies or shutter their business.
Not all of the sanctions are catastrophic.
There are cases in which the fine applied is equivalent to 2.5% of the amount not paid in the case of the monthly advance payment of the business income tax, or 5% in the case of the value-added tax or of income tax withheld from the salaries of employees.
“Technically, it’s an invalid appropriation of withholdings, and can be criminally sanctioned,” in addition to being shut down, fined, or temporarily put under government management, explained a source with extensive experience in tax matters.
That said, this source sees a variety of reasons to doubt that they would decide to take such extreme measures, beginning with “as far as I know, they have never applied them to anyone.”
Another is that to close a business means sending its workers into unemployment, which implies that they will not receive taxes from the business or from those consumers.
But beyond believing in the mercy that any of these reasons implicitly assumes, the source points out fact that is easier to accept:
“If the resolution is massive, the tax administration simply does not have the capacity to audit and penalize everyone at once.”
Larger Companies Have More Fear
If it is decided to penalize only some in order to set a precedent that strikes fear into the others, surely one of the larger ones will be chosen, which not only has more ability to defend itself in the courts, but also to negotiate, precisely because of its size.
Another source asserts that “although it may seem obvious, the businesses that take the least risk are the most powerful ones, for the simple reason that they are not big taxpayers but big tax collectors.
“The DGI, does not want to be bothered with them, because if they weaken them, this affects tax revenues, principally value-added tax withholding.”
When the big companies that could take such measures don’t apply them, despite their intrinsic power, they are demonstrating “the cowardly face of big capital.
If they would decide, the blow to DGI would be immense,” s/he says.
Róger Arteaga, former director general of Revenue, agrees, saying that “big capital has not wanted to go all-in.
It is true that it gave its approval to the strike, but did so with fear and only temporarily.”
There is at least one group that risks more in a tax strike: import and export companies, which require clearances that can only be obtained once they have paid the corresponding taxes.
“If one of these business doesn’t make its monthly statement, or makes it but doesn’t pay, it falls into insolvency, and can neither import nor export.
The only importers who could afford that ‘luxury’ would be those that have sufficient product already on hand, especially at times like these, when there is little movement of inventory,” explained one of our sources.
Small- and medium-sized businesses — both fixed-quota and general regime — can stop paying taxes as long as the situation does not normalize, and while this makes them vulnerable to penalties, it is not likely that this will occur, especially, again, if a critical mass applies this measure of fiscal chastisement.
How long can the government last without taxes?
Our sources note that before making tax payments, the employer must guarantee the salary of its employees, and that the decision not to pay taxes is “protected by the higher legal concept, legally enshrined in the national legislation, as the Act of God and the Force Majeure.
Nobody is obligated to do the impossible, and the reason for this impossibility lies outside the control of the employer or employee.”
Citizens, on their part, could put pressure on big and medium-sized business, offering to act together if the Treasury moves against them.
“In this context, big capital must play a consistent role, acting firmly in the face of a Treasury that has granted them such special privileges.
It would be their most authentic repentance for the eleven years of tax advantages they have taken in the shadow of power.
That stain should be washed out right away,” they say.
As an expert, Arteaga proposes “that the businesses do not charge value-added tax, and the citizens not pay it.
Income tax also.
There are penalties, but the penalties and decisions of this government must be ignored, as they have no legitimacy.
How long can the government last without taxes?” he asked.
“Tax resistance aims to respond to Ortega’s claim that he will stay on through : we must find a solution, and one of these is for the private sector finally to decide on civil disobedience of a monetary and tax nature,” he explained.
Pedro Muñoz Fonseca, president of the executive committee of Costa Rica’s Social Christian Unity Party, urged Nicaraguans to use tax resistance against their government:
Social Media Tax Protest in Uganda
The government of Uganda has imposed a 5¢-per-day tax on using social media and
other services. This was designed as both a revenue measure and a way of
reducing what Ugandan president Yoweri Museveni calls lugambo
(“fake news”). Amnesty International has been among those to see through the
government’s rhetoric and cast the tax as
“a
clear attempt to undermine the right to freedom of expression.”
Robert Kyagulanyi, a Member of Parliament better known by his musician
stage name Bobi Wine, whose election is in part credited to his success on
social media, has been at the forefront of protests against the tax.
He was arrested, along with
three reporters when a march protesting the tax was attacked by police
with tear gas and rubber projectiles, but they managed to escape.
Ugandan protest marchers wearing shirts featuring a smart phone screen that
reads “This Tax Must Go”
War Tax Resistance Around the World
ABC reports on war tax resisters in Valencia — “the new refuseniks”.
War tax resisters there typically refuse to pay some percentage of their taxes, often basing this on the percentage of the federal budget that is spent on the military and similar items, and redirect this money to more worthy charities.
They declare this deduction on their tax forms in such a way that the tax agency typically does not treat it as illegal tax evasion but as an error or mistake.
The Global Day of Action on Military Spending Final Report has been released.
It gives a summary of the various events that took place around the world, including several by war tax resisters and groups promoting war tax resistance.
There’s a new NWTRCC newsletter out, with content including:
Ideas & Actions concerning weapons-free investing, responding to arguments against war tax resistance, a fast for nuclear disarmament, and more
You can now listen to audio excerpts from the upcoming documentary The Pacifist, about war tax resister Larry Bassett, on Spotify.
Erica Leigh pores through back issues of Conscience, the newsletter of the Conscience and Military Tax Campaign, an American war tax redirection group that slightly predates the founding of the National War Tax Resistance Coordinating Committee.
Raymond Hunthausen has died.
As Catholic archbishop of Seattle, he took a remarkably strong stand on nuclear weapons — famously calling the Trident nuclear submarine program being developed nearby “the Auschwitz of Puget Sound” — and began practicing war tax resistance in response.
This earned him enemies in Washington and in the Catholic hierarchy. Here are some of the obits and remembrances:
A biography of Hunthausen, A Disarming Spirit, will be released soon.
David McReynolds has died.
He was a long-time War Resisters League and Socialist Party activist and was also on the staff of the Committee for Nonviolent Action which helped to spearhead war tax resistance as a tactic during the campaigns opposing the American war in Vietnam.
He was among the signers of the “Writers and Editors War Tax Protest” in and of a similar public pledge .
David Paul Irish has died.
He was active with the Fellowship of Reconciliation, Women’s International League for Peace and Freedom, Peace Brigades International, and Witness for Peace.
He was an advocate for war tax resistance in the Society of Friends, drafting a minute in favor of of war tax resistance that the Twin Cities and Minneapolis Meetings approved in .
