Is Tax Just a Tool to Keep Poor People Down?

in #money6 years ago (edited)

Before I start I'd just like to say that I don't consider myself right or left or any label really. I agree with the tenets of classic liberalism: Freedom of the individual, religion, speech, press, assembly, markets, the rule of law. That's my 'default' setting. I'm not a total free market anarchist because I can see the damage immensely wealthy/powerful people can do to a society if not held back. I guess I see societies needing a kind of dynamic equilibrium that oscillates between freedom & authoritarianism - there needs to be as much freedom as possible for the flowering of a society, but there also needs to be structures in place to provide security, infrastructure, rule-of-law.

That's my viewpoint so people do't think I'm just trying to push either a Marxist or Anarchist agenda.

I have an ambivalence towards tax. I recognise the need for funding being required for public works - roads, courts, schools, police, pensions etc. However I really DON'T like the fact that I have no control over the truly awful/evil/immoral things the UK government does, or the things it spends taxes on.

So the innocent tax payer fuels evil in the world (as well as paying for essential services). The more tax I pay, the more evil they can accomplish.

We have a regressive tax system in the UK, by design of course. The richer you are, the less tax you pay. Recently the Duke of Westminster died leaving his vast fortune & properties in London to his 26 year old son Hugh. The assets are worth (at least) £9 BILLION. How much inheritance tax (wgich is 40% of anything over £325,000) did young Hugh pay? Absolutely nothing at all! The assets are held in some sort of complex overseas trust, so legally he doesn't pay a penny. Now I don't actually LIKE the idea of someone having to pay inheritance tax after they've been taxed throughout their life, what the hell business is it of the governments if you pass wealth on to your family, HOWEVER the scandal to my mind is:

The poor pay no inheritance tax (they've no assets)
The middle pay lots of inheritance tax
The rich pay no inheritance tax

The perversity of the system (and I'm going to make the wild guess that this is no accident) means the rich can maintain their wealth through the ages, whereas those normal families that manage to succeed financially, get cut back down to the bottom each generation. I'm beginning to think there might be a reason much of the land in the UK has been owned by the same families since the 11th century!

We in the UK have the absurdity of selling off the formerly state-owned assets of water, gas, electric companies 20 years ago because state-owned = inefficient (apparently), only to now be buying water, gas, electric from other countries!

What happened? Well the rich & the poltician's friends in the City of London did very well out of the high investment banking fees & insider trading that went on during these asset sales...& because they tended to sell the assets at below asset prices. Basically it was a transfer of wealth from the poor to the rich ('the poor' being the UK tax payers who owned the assets before, 'the rich' being those that bought these assets on the cheap). Now we have had 20 years of above-inflation prices rises....but the funniest thing of all is: The water, gas & electric companies that supply the UK are now owned by companies owned by the French & German tax payers! (apparently French & German state-owned businesses are ok to operate in the UK, just not UK tax-payer owned ones!)

We have lived through a decade of 'austerity' in the UK - the government aggressively cutting funding to public services. It's been dramatic & across the board (though they've had plenty of funds for new F35 warplanes & aircraft carriers, they have 'had' to close hundreds of libraries, community centres for older people, benefits for the disabled, and schemes to help train the long-term unemployed. At the same time massive amounts of money has been created out of thin air ('quantitative easing') and given to rich people who've inflated the prices of every asset even though the economy & average wages have been pretty stagnant for the whole 10 years.

So they are cutting money to poor people
Taxing poor people
&
Giving free money to rich people!

The obvious result has been a sharp increase in deprivation, addictions & premature deaths among the poor, and the rich gaining a larger % of the pie. Almost as if this was done deliberately ;-)

So the radical thought I'm having is... if they can create free money out of thin air to give to rich people, why are they still taxing the poor? UNLESS taxation is very little to do with raising finance & MUCH MORE to do with keeping poor people in a state of poverty & rich people in their position of privilege.

I'm sure I'm not the first person to think of this - tax as a way of maintaining the status quo.

Do I believe this? Is this just a crazy conspiracy theory? Yeah, maybe!

What's the solution: Cryptocurrency & voluntaryism of course

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So the radical thought I'm having is... if they can create free money out of thin air to give to rich people, why are they still taxing the poor? UNLESS taxation is very little to do with raising finance & MUCH MORE to do with keeping poor people in a state of poverty & rich people in their position of privilege.

This will not be the only reason but I am pretty sure that it is one of the reasons why taxes exist. So it's not a theory, it seems to me but reality.

Totally agree with you, and I would just add one more thing to your final thought - taxation has a lot to do with keeping the rest of us working our butts off for increasingly long hours.
I also agree with the tenets of "classic" liberalism, and do not subscribe to the left-right paradigm, but I hold back from outright anarchist ideals such as voluntaryism, because I can see the advances that the welfare state and the NHS have brought to the UK for so many people.
It could be argued that these advances have more to do with scientific progress, but I'm just not sure - it's a big question. I don't want to throw the baby out with the bathwater, so to speak. We need to hold our leaders to account more, and to question where the money we pay in taxation is going.

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