Quote:
Originally Posted by aceventura3
There are reasons why some want to pay more taxes and others do not, outside of greed or pure selfishness. Put simply, one reason is that some actually know that they can more efficiently allocate capital for the greater good than government. Some things government is exceptionally good at, and others they are not, people I know have no problem with taxes going to those things government is exceptionally good at.
to give an example of what I mean - If I have $10,000, that could either go to the government in the form of taxes or used by me in my business - I believe I can do greater good for society than the federal government under our current circumstances. I would invest the money in business growth. Leveraged through my business, I would create jobs, create taxable income, and increase current consumption through my business.
I believe the government would simply waste the money and have absolutely nothing to show for it.
Given, that - why on earth would I want to voluntarily pay more in taxes? I would not. However, assuming I have the ability as described above (and I believe most "rich" people really feel the same way), why would I start a PR campaign to increase my taxes? In order to achieve alternative goals! People who can not accept the reality of that, have my sympathy.
The dangling question is can I actually do what I say I could do with the $10,000? I have done it in the past and I can do it in the future. Every dollar I save in taxes and invest in business growth will improve my community to a greater degree than if I sent that dollar to Washington.
This is not rocket science (complicated), or voodoo economics (without a basis in what is real) - "rich" people in particular know this. People who have created wealth Vs. those who had wealth handed to them know this. those who don't know it now, but one day actually start creating wealth will come to know this.
|
Hey Ace, good post.
First, and I think this is the most important thing to consider, society needs to work together. Taxes are not just fuel for the government machine; they are allocation of funds by citizens towards a common goals. For example we agree that educating is required for a better and stronger society. We elect officials that recognize this goal and give them our money to make it a reality. Without taxation an education system would not exist.
Point two: participating in non-profit programs takes time and money. We'd all like to think that if we had lots of cash we'd throwing it around to help others but it's much easier to simply give it to an elected person you trust. In terms of motivation and asset allocation taxes work much better than depending on people to be generous. Fund raising is the number one expense of all non-profits.
Point three: sometimes it's more efficient to have a state/nationwide programs than many privately funded programs. This also ties in with working together as a society.
Quote:
|
to give an example of what I mean - If I have $10,000, that could either go to the government in the form of taxes or used by me in my business - I believe I can do greater good for society than the federal government under our current circumstances. I would invest the money in business growth. Leveraged through my business, I would create jobs, create taxable income, and increase current consumption through my business.
|
Ok, so you invest this money and make 10% annual profit. In a year you now have $1000 and $10,000 is infused into the economy.
On the surface it seems like I just gave $10,000 to my country and made money on top of that. It doesn't work like that. In my case only 12% of that money goes towards employees. The rest goes towards other companies and business owners - some of it overseas. Those companies also have employees but they too are not getting 100% of what I pay for my products. So in the end that $10,000 is not going towards social benefits. Very little of it is reaching lower income families, most of it is being re-invested or going towards the business owners. Ever if 50% of that 10k was wasted by an inefficient government the local school, hospital or library would still be better off.
The whole idea that more business = better society is false. Just look at any plutocracy in the Arab World. Are their populations reaping the rewards of their countries oil wealth?
Your last comment about employes generating taxable income is socially irresponsible.
Quote:
|
I believe the government would simply waste the money and have absolutely nothing to show for it.
|
This is the only issue that I accept as relevant in your post. I agree with it - but it's not that simple or absolute.