The disparity in wealth of the world’s political leaders and their country’s citizens varies greatly around the world. Research from credit broker Moneypod has uncovered just how big the political pay gap contrasts with the national average wage of their country.
Due to public anger over income equality, the Singaporean Prime Minister Lee Hsien Loong recently took a 36% pay cut to ease tensions. Despite this, he is still the highest paid world leader, with a $1.7 million yearly salary in comparison to the average wage of a Singaporean sitting at $52,000.
Controversial US President, Donald Trump’s wealth is valued at $3.1bn due to his large portfolio of hotels, resorts and real estate. He earns $400,000 per year for his role as President. However, he donates all but $1 of his salary to charity as the American constitution states that a sitting President must be compensated for his services. This is comparable to the average US citizen earns a relatively comfortable $57,000 per year.
When it comes to the world’s wealthiest world leaders, Russian President Vladimir Putin is the clear frontrunner. Worth a reported $40bn due to his holdings in a secret portfolio of companies in real estate, utilities and banking, Putin is often accused of corruption and enriching is friends. Compared to the average Russian salary of $7,000 per year, Putin lives a lavish life owning a $1bn palace located on the coast line of the Black Sea.
Discover the wages and net worth’s of the top 20 richest paid world leaders, and how this compares to the average wage of their citizens.
Politicians have a widespread and long term impact on so many things every time they speak or do anything. But to what extent do they affect currency volatility?
Forex market experts DailyFX have created a guide that looks at 59 key dates in 2017/18 where world leaders may have had significant influence on currencies. The lists of key dates includes US President Donald Trump, UK Prime Minister Theresa May, Japanese Prime Minister Shinzo Abe, Canadian Prime Minister Justin Trudeau, Australian Prime Minister Malcolm Turnbull and the President of the European Commission Jean-Claude Juncker.
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Grandstanding politicians are misinformed, hypocritical and “demonstrate monumental naivety” on the Paradise Papers debate, affirms the boss of one of the world’s largest independent financial services organisations.
The comments from Nigel Green, the Founder and CEO of deVere Group, come as the British leader of the opposition party, Corbyn, and the veteran US Senator and former presidential hopeful, Sanders, amongst others, speak out publicly in the wake of the leak of more than 13.4 million documents, dubbed the Paradise Papers.
Nigel Green explains: “The heightened level of sensationalism is out of control, masking the reality of the situation, and is being fuelled by misinformed, politicians out to score cynical political points.
“Corbyn implies the Queen, rock stars, and multinational firms, amongst others, must apologise for benefitting from legal, tax-efficient schemes. Meanwhile, Sanders maintains that money in offshore accounts illustrates the movement towards an ‘international oligarchy’.
“This hyperbole is unhelpful, misleading and demonstrates their monumental naivety.
“It’s time to set the record straight.”
He continues: “The murky world that these and other politicians and others are inaccurately describing is not one that I recognise.
“In the vast majority of international financial centres are now transparent and appropriately regulated. They provide a sought-after service for individuals – and not just the uber rich ones– and organisations across the globe.
“Indeed, they are an important, legitimate and beneficial cog in the global economy.”
Mr Green goes on to say: “Internationally-mobile individuals and firms typically find that offshore accounts are a sensible option because of their convenience. They offer centralised, safe, flexible and worldwide access to their funds no matter where they live and no matter to which country the person or firm might relocate in the future. Also, they provide a greater selection of multi-currency savings and investment options.
“Other, often ignored, benefits also include that they can assist firms from to avoid double taxation on the same income, and that they offer legitimate financial refuge for those in countries where there is economic, social and political turmoil.”
Mr Green adds: “For high-profile politicians to complain - and to take the moral high ground – on this, when it is they who have the powers to change tax laws and regimes, smacks of political opportunism and hypocrisy.
“The notion that the majority of individuals and firms in these allegations are ‘getting away’ with mitigating their taxes liabilities legally is absurd. It is akin to someone ‘getting away’ with driving at 50mph in a 50mph zone.”
“Tax is a legal impost and it is individuals and corporations duty to comply within the laws and organise their financial affairs in order to pay what they are required legally.”
The deVere CEO concludes: “Whilst the ‘Paradise Papers’ do indeed highlight that more needs to be done to increase efficiency and cooperation in some regards and jurisdictions, the current furore is distracting attention and resources away from the serious global issue of tax evasion.”
(Source: deVere Group)
