So "everyone" is going crazy with this story: Global super-rich hide $21 trillion in tax havens.
It is the same old struggle between "rich and poor" or "good and evil".
People are shocked and demand blood (you must read the comments on the news articles that talk about this story) and, as usual, blame the rich for their problems.
So, without going into much detail on everything being said, let me just throw in some food for thought...
People refer to themselves as "the 99%" and the rich as "the 1%". Well, it seems it is actually something more along the lines of the 0.1% (or even a smaller percentage than that) :o)
The 5% to 1% are people who make, in average, between $150k to $380k per year.
Still, the really important thing I want to point out is, so what if taxes weren't paid for these trillions of dollars?
I think most people are looking at it from the wrong angle...
- I pay taxes, so others must also pay taxes (and that's understandable and fair!)
- If they do not pay taxes, I end up paying taxes for them.
But, do you REALLY end up paying for the taxes that aren't being collected by the government?
Now, bear with me for a second and think about these questions:
- does the government REALLY need the money?
- after all, the government is there to provide us with basic services, not to grow with the economy;
- and you can argue that it does because, just look at all the debt they have, but...who's fault is it that the government is in debt?
I guess what I'm trying to point out is that taxation is made at a percentage of whatever wealth is created (be it big or small) and my question is, does government REALLY need more money to run its key services as the economy grows? Or, should it actually need LESS money when the economy is healthy? (as people do not require as much government assistance).
Of course this depends on the type of government you have but, because I'm a strong advocate for EXTREMELY small government, I want to ask the question:
So, if the problem is "paying their fair share", why do rich people have to pay more? Why is that fair?
A poor person takes back a lot more from society (e.g. food stamps and other government assistance) and no one seems angry with them not paying any taxes and actually getting money from the government.
So where does this concept come from? That if you are rich you must pay more than others?!
Even if we did not have a progressive taxing system and went with a flat rate, rich people would STILL pay more.
At a 10% tax rate, someone who earns $500 per month would pay $50 and someone who earns $5000 per month would pay $500. Where is the fairness in that?!
Of course the argument is that "the $50 have a lot more impact in the life of someone who only earns $500 than $500 on someone who earns $5000" but...is that really true?
Where's the personal freedom? We are free to pursue happiness.
So, NO ONE should condone someone with more money for whatever they do with it.
Although it certainly isn't a rule, there is a tremendous amount of people who are poor because they want to. They aren't ambitious and they do not like to work. This is a FACT of life and, in my book, that is JUST fine.
That's what absolute freedom is all about. If you are not happy working, DON'T work.
If you do not care about material good, just live a humble life.
But don't point the finger at the people who like to work or love material things. It is their choice too.