Believe It Or Not, There Are People Out There Who Want To Pay More Taxes

August 3, 2017

When you have lived in a tax haven or at least somewhere that has a regressive tax system the immediate inequality becomes clear to you. The regressive tax levies the same amount on each individual but the proportionality of the tax affects those with a smaller income to a larger degree than those with higher incomes. Think of a regressive tax as a "flat tax". Sales tax is a good example, and whilst it is equality defined in practice the burden on individuals on a lower income is apparent and unacceptable in a civilized society.

 

How gratifying then to be taxed on a scale of wealth with the introduction, to this tax haven, of progressive taxes including the terrifying and all destroying personal income tax. The three words that deliver a searing bolt of terror to the heart of the very wealthy. To individuals and or cartels that operate in a tax haven the very thought of PIT is an affront to capitalism and a blight on the very free will and, dammit, the free market that is the tax haven. Well to hell with them, if they depart the shores of a tax haven they won't be missed, weren't they just bleeding the place anyway, like leaches on a particularly flea ridden dog. The dog will barely miss them when they're gone but will feel absently refreshed and less irritated.

 

But let's look at the small to medium size businesses on Norfolk that are doing ok (they could always do better according to their owners) not breaking any records but the income is there. They are happy to make a profit and happy to pay their fair share towards the community. When you have seen your taxes previously squandered on the regressive scale these business owners are feeling bouyed by the fact that they are putting their hard earned towards new roads, hospital upgrades and many more tangible, real improvements to the community. You give what you can afford. It is in fact the very definition of progressive taxation. Maybe it would be more accurate to say 'they take what you can afford', but you get my meaning.

 

What then of the lower income workers. Well, now they are being taxed less aggressively they have more disposable income for the necessities of life, and if they get in trouble there is always the safety net of the social services system. Exactly the opposite of the previous system where the island saw a mass exodus of people when times got financially difficult as there was no safety net. When you are living paycheck to paycheck and the jobs dry up then you have no choice. The knock on effect from this exodus was brutal and as efficiently indifferent as an economy can be when it is starved.

"With taxation comes civilisation" were the words uttered by Simon Crean at the beginning of this whole process of reform. It is not until you live in a tax haven that you must agree (the conversation of over-taxation can be had later). It's the infrastructure that suffers and the not so well off.

 

 

 

 

 

 

 

 

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