Clinton urges Pakistan to make the rich pay up

[Lahore_Real_Estate]

WASHINGTON: The United States will set tougher conditions on its aid to foreign governments, including an expectation that rich foreigners will not skip out on their taxes while Americans bankroll things their nations need, US Secretary of State Hillary Rodham Clinton said on Tuesday.

The remarks were aimed largely at Pakistan, a major aid recipient. “Countries that will not tax their elite, who expect us to come in and help them serve their people, are just not going to get the kind of help from us that historically they may have,” Clinton said.

She singled out Pakistan, where wealthy landowners typically pay little or no taxes. Clinton’s warning came as she and other Cabinet officials described aid and development policies US President Barack Obama announced last week.

US Treasury Secretary Timothy Geithner said the higher bar for US aid will help the United States get more for its money. “Unless we are tougher on how we provide assistance; unless we look at those basic simple things, like are they running their country in ways that give us confidence that our resources will be used well; we should not be financing them at this level,” Geithner said.

Clinton delivered a milder warning about taxes during a visit to Pakistan last summer, which drew an angry response from Pakistan. Speaking on Tuesday at the nonprofit US Global Leadership Coalition, Clinton said that Pakistan is now drafting new tax policies.