QUESTION: Mr Armstrong, I am an avid fan of your site and
thoroughly enjoy your posts. As much as I am against tax, would you not agree
it’s rather sick that a company the size of Facebook paid out less tax than I
did last year?
I know you advocate a tax on sales,
but in the UK we already pay VAT on goods. Any suggestions on a fair system? Many
thanks for all your work. Regards, G
ANSWER: This is the problem with taxation. Major public
corporations can move their tax domicile offshore to avoid taxes legally. The average
person cannot move his labor offshore to lower his taxes, which is a
disadvantage we must address with tax reform. VAT is far worse than a sales
tax. Every person in the chain must collect and file paperwork. It must
require three times the number of people to administer such a system
compared to a point of sales tax collection.
But that issue aside, there should
be ABSOLUTELY NO income taxes whatsoever. That not eliminates government
having to track everything, but it also eliminates the whole movement of
capital solely for tax purposes. This is unfair, for the average person cannot
send their labor offshore to avoid taxation without moving. Even then, that
would only get an American the first $100,000 tax-free; after that, it
would be subjected to U.S. income tax.
The Founding Fathers of the United
States revolted over taxation without representation. We are back to
that now, for we are being taxed to pay interest to service debts
from the last two generations. We had no right to vote on that spending, which
took place before we were born. This is not a democratic process.
There should be ONLY a
retail sales tax EXCLUSIVELY for local
government. Federal government should be prohibited from imposing ANY
tax and it should be barred from borrowing money. The local tax will naturally
be checked by the free market, for if they keep raising taxes, businesses will
move to the next town and there goes the jobs. This will help to restrain
government on a more practical level.
Moreover, there should be NO
PUBLIC SCHOOLS. All schools should be private for then there will be no
mismanagement, crazy pension failures, or tax hikes to line their pockets.
Schools should be by voucher and run by private industry just
like Catholic schools, which were always known for having better education in
the States. It is the
teachers and their unions who have
ruined society, as taxes are imposed on property and people cannot afford to
retire in their home where they raised a family. They are forced to sell
because they cannot afford taxes that never stop and only rise. PROPERTY
TAXES must also be abolished.
Our problem is the total
mismanagement of government. They promise and award themselves all sorts of
perks, which reduces the quality of life for everyone else. We must look at the
cause and that is the seriously flawed design of the
financial-economic-governmental system.
This entry was posted in Taxes and tagged Education, Facebook, Income
Tax, offshore
banking, public
schools, VAT by Martin
Armstrong. Bookmark the permalink.
http://www.armstrongeconomics.com/archives/38438
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