Why Income Tax Hurt Income Earners And Workers

Why Income Tax Hurt Income Earners And Workers
All wealth redistribution comes in​ the​ form of​ the​ equivalent of​ tax and welfare .​
However,​ you​ need to​ be careful .​
Incorrect taxation schemes can result in​ less wealth for you​ .​
You see,​ by reading this website I​ would suppose that you’re poor or​ middle class wanting to​ skyrocket your income,​ right .​
Rich means owning a​ lot of​ money .​
If you’re poor and would want to​ get rich,​ you​ need to​ have a​ lot of​ income .​
So will income tax help? No! Abolish income tax.
The Peril of​ Income Tax
Income tax can exaggerate wealth difference and can cause great deviation from meritocracy .​
Income tax can be very unfair and bad for workers.
Think of​ it​ this way .​
Imagine a​ country where you​ live .​
Say your friend Bob has an​ employee Ann .​
Bob is​ a​ rich man because he owns a​ lot of​ farm land that he uses as​ his recreational facility .​
Ann works for Bob as​ a​ farm labor .​
You work by productively serving the​ market through various means.
Bob earns his land through inheritance from his ancestors .​
His ancestors earn the​ land by massacring Indians and seizing their land .​
Not exactly productive means of​ acquiring wealth,​ however for all legal purposes,​ Bob’s land is​ his.
The market tends to​ reduce the​ effects of​ injustice .​
a​ stupid lazy person owning great wealth will lose it​ in​ gambling table while the​ smart and diligent worker will have plenty of​ capital owners willing to​ lend money to​ him .​
So I​ am not going to​ argue much over 300 years old injustice.
It’s simply a​ natural order that the​ more capable gets more money and it​ does take skill to​ commit genocide I​ must admit .​
Moreover,​ people often earn large amount of​ money unproductively due to​ society's failure to​ embrace meritocracy .​
If the​ rule says you​ got to​ bribe or​ be a​ dictator to​ get rich,​ can we blame people to​ do just that? So in​ a​ certain very twisted sense,​ it’s fair.
Nevertheless,​ I​ look much more kindly on​ capitalistic wealth earned recently through merit within ones’ own lifetime rather than wealth earned through inheritance .​
The latter is​ rather dubious.
Now,​ what would income tax do with this injustice? Income tax will exaggerate it .​
You,​ as​ workers who serve the​ will of​ the​ market will have to​ pay income tax .​
The money goes to​ pay subsidy for farm products .​
Politicians will say that it​ benefits Ann .​
Will it? No .​
Ann is​ a​ farm laborer .​
The market value of​ any labor is​ constant across industry .​
If Ann gets paid with less money as​ farm labor,​ Ann will move job to​ a​ service industry.
So the​ subsidy does not profit Ann .​
Then who profits? Bob… you​ see how a​ combination of​ income tax and governments’ controlled subsidy take money from you,​ the​ still poor workers,​ and give the​ money away to​ rich land owning people?
The perils of​ income tax go on​ and on​ .​
You make money honestly .​
Your friend is​ lazy .​
Say you’re both poor .​
Who pays more tax? you​ .​
That’s because you​ have more income .​
The pretext is​ to​ take money from the​ rich and give it​ to​ the​ poor .​
Yet,​ even though you’re both poor and start of​ with the​ same amount of​ money,​ you​ pay more tax .​
That punishes diligence and productivity.
Say Bob and you​ are equally rich .​
Bob builds mansions .​
You build factories .​
Who pays more tax? You… Why? That’s because factories produce income .​
Factories also create jobs .​
So,​ income tax reduces incentives to​ use wealth for productive means.
Increase of​ Fearsome Governments Power
Income taxes give governments far more power than what’s originally intended .​
In US,​ for example,​ governments do not have power to​ know your financial transaction .​
Yet governments can take your money through tax and then demand that you​ voluntarily report your financial transactions to​ get tax returns.
Federal governments do not have the​ power to​ regulate some aspects of​ the​ states .​
Yet federal governments can tax everyone and deny funding for states that do not observe federal speed limit .​
Federal governments do not have direct power to​ indoctrinate your kids,​ however,​ the​ governments can tax everyone and subsidies public school .​
The list can go on​ and on​ .​
With income tax,​ everyone is​ a​ slave.
If income tax is​ such a​ bad idea,​ how should we replace that then?
Non Productive Means to​ Acquire Wealth
There are two types of​ wealthy people .​
Self made millionaires,​ and the​ rest .​
Self made millionaires are highly capable,​ diligent,​ and ambitious individuals .​
That is​ you​ or​ what you’ll become .​
To be rich,​ such self made millionaires need to​ have a​ lot of​ income .​
Taxing income hurts self made millionaires .​
Not only that,​ we’re talking about highly diligent and capable people here .​
Those people don’t go down easily .​
When income is​ taxed,​ they’ll resort to​ other ways to​ create wealth .​
That ranges from hiring lawyers to​ avoid tax,​ fighting governments,​ corruptions,​ or​ becoming a​ dictator.
Just look at​ Saddam .​
Why do you​ think he chose to​ be a​ dictator? Why Kim Yong Il became a​ dictator? Are those people too stupid to​ earn wealth productively? No .​
They’re smart .​
But they chose to​ be a​ dictator because productive means of​ creating wealth are harassed by various regulations like income tax.
Supporting income tax or​ any consensual means of​ making money will not only hurt you,​ but also hurt all poor and middle class .​
Just look at​ the​ median wealth of​ capitalistic countries and socialistic countries and you’ll see my point easily.
If you​ really want wealth redistribution,​ don't tax income,​ tax wealth.
Why Income Tax Hurt Income Earners And Workers Why Income Tax Hurt Income Earners And Workers Reviewed by Henda Yesti on July 07, 2018 Rating: 5

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