Clinton: It’s ‘unacceptable’ that Pakistani elites aren’t paying more taxes

Secretary Clinton blasted Pakistan’s government today for not taxing its rich more, yet expecting developed countries to aid the country. She declared, "It is absolutely unacceptable for those with means in Pakistan not to be doing their fair share to help their own people while the taxpayers of Europe, the United States, and other contributing countries are all chipping in to do our part."

Clinton made the remarks at a news conference in Brussels with EU High Representative for Foreign Affairs Catherine Ashton (seen above) in which they discussed flood-recovery efforts in Pakistan. Clinton mentioned that a stable Pakistan is essential to the fight against terrorism, which is when she started on her pet peeve: poor countries that don’t tax their elite. Here are her demands of the Pakistani government, which you can also listen to in the video below: 

We also believe that stability in Pakistan is essential to our shared fight against terrorism and to protect the security of the people of our country and friends and allies like those in Europe. Now, of course, the international community can only do so much. Pakistan itself must take immediate and substantial action to mobilize its own resources, and in particular to reform its economy.

The most important step that Pakistan can take is to pass meaningful reforms that will expand its tax base. The government must require that the economically affluent and elite in Pakistan support the government and people of Pakistan. We have been very clear on that, and I am pleased that the government is responding. I know how difficult this is, but it is absolutely unacceptable for those with means in Pakistan not to be doing their fair share to help their own people while the taxpayers of Europe, the United States, and other contributing countries are all chipping in to do our part. The government must also take steps to alleviate the crippling power shortages that stifle economic growth while making life difficult for the Pakistani people.

If U.S. President Barack Obama is having such a hard time repealing the Bush tax cuts on America’s rich, his administration is going to have an even harder time getting another country’s government to increase taxes on its rich (or begin collecting taxes from the rich in the first place). Clinton is certainly right that Pakistan’s elite should pay its fair share of taxes — the rich there pay laughably small amounts or none at all, Clinton pointed out last month. But, the United States has limited influence on the country’s government. Just two weeks ago, Pakistan closed the Torkham Gate crossing into Afghanistan after U.S. forces accidentally killed several Pakistani border guards. The crossing has since been reopened, but the multiday closure held up trucks that supply international forces in Afghanistan. So, who’s really in a position to be calling the shots?