May 29, 2012, The Guardian (One of the UK’s leading newspapers)

christine lagardeChristine Lagarde, the IMF boss who caused international outrage after she suggested … that beleaguered Greeks might do well to pay their taxes, pays no taxes, it has emerged. As an official of an international institution, her salary of $467,940 (£298,675) a year plus $83,760 additional allowance a year is not subject to any taxes. Lagarde, 56, receives a pay and benefits package worth more than American president Barack Obama earns from the United States government, and he pays taxes on it. According to Lagarde’s contract she is also entitled to a pay rise on 1 July every year during her five-year contract. For many years critics have complained that IMF, World Bank, and United Nations employees are able to live large at international taxpayers’ expense. During the 1944 economic conference at Bretton Woods, where the IMF was created, American and British politicians disagreed over salaries for the bureaucrats. British delegates, including the economist John Maynard Keynes, considered the American proposals for salaries to be “monstrous”, but lost the argument.

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