As mentioned in one of my previous blog entries that the government largesse is visible in the domestic economy, it is even more perverse on the international scene.
In What I mean by hazardous government rhetoric I wrote about the perverse incentives that the government implements to keep people from leaving government, this next piece is just as amazing.
According to the Guardian:
“As an official of an international institution, Christine Lagarde’s salary of $467,940 (£298,675) a year plus $83,760 additional allowance a year is not subject to any taxes. […]The same applies to nearly all United Nations employees – article 34 of the Vienna convention on diplomatic relations of 1961, which has been signed by 187 states, declares: "A diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal."According to Lagarde's contract she is also entitled to a pay rise on 1 July every year during her five-year contract.”
That’s right. When you or me seeks employment, we are forced into progressive tax brackets, while the “elite” get away with a free lunch. The masses endure financial repression and a fall in living standards, but the IMF chief gets a get-out-of-tax free card.
People should also check out the other “privileges” these people have, straight from the UN website:
1. Rental subsidy if newly arrived at the duty station your rent represents too high proportion of the total remuneration.
2.Dependency allowances if you have an eligible dependent spouse and/or child
3.Under certain conditions an education grant if you have eligible children in school.
4.Travel and shipping expenses when you are moving from one duty station to another.
5. Assignment grant to assist you in meeting initial extraordinary costs when arriving at or relocating to a new duty station.
6. At some duty stations, a hardship allowance linked to living and working conditions is paid and where there are restrictions on bringing family members, a non-family hardship allowance is also paid.
7. Hazard pay and rest and recuperation break when you serve in locations where the conditions are particularly hazardous, stressful and difficult.
2.Dependency allowances if you have an eligible dependent spouse and/or child
3.Under certain conditions an education grant if you have eligible children in school.
4.Travel and shipping expenses when you are moving from one duty station to another.
5. Assignment grant to assist you in meeting initial extraordinary costs when arriving at or relocating to a new duty station.
6. At some duty stations, a hardship allowance linked to living and working conditions is paid and where there are restrictions on bringing family members, a non-family hardship allowance is also paid.
7. Hazard pay and rest and recuperation break when you serve in locations where the conditions are particularly hazardous, stressful and difficult.
The last one and first one is just brilliant. I have only one thing to say: Dear Christine, take a hike and get a real job.
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