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QUOTE: "…which is part of the reason I don't mind a little wealth redistribution. I also believe that if we aren't ensuring that individuals with the most merit are educated properly then we are harming our competitiveness versus the other world powers in the long run."
Those two things, wealth redistribution & ensuring individuals with merit are educated properly to promote competitiveness, are in opposition of eachother. It’s like pushing and pulling at the same time.
The only type of wealth redistribution scheme that has any merit at all is a consumption tax. This is what the USA (& other places in the West) used to have, and it is also what many tax havens such as the Cayman Islands or the Turks and Caicos Islands still have.
For example, in the Caymans, you pay about 33% tax on what you spend. (Or import). Not on what you earn. That is why things are so expensive there – but, they have no income tax, property tax, inheritance taxes, capital gains or dividend taxes etc.
And this does promote wealth distribution, because rich people spend more money than poorer people. But, if a person were to work hard, and be thrifty at the same time, it is much easier to pull ahead and start getting your money to work for you, rather than you working for your money.
For example. If you live here in Canada, and gross around $4,000/month, after taxes and deductions, you will be left with around $2,700-$2,800 net take home pay. And from there, you pay for your living expenses, most often eating it all up.
However, the other way around is, I earn $4,000 a month, with zero tax, but I pay $2,750/month for living expenses plus $925 in consuption taxes for my goods, totalling up my expenses, including tax, to $3,675/month, and I am now $325/month ahead of the game than the other way, and since I am now batting above my living expenses, and I can directly control my living expenses, hot damn am I going to be motivated to hustle my ass to make some more money. Why, I might even get up off the beach and put in a few hours overtime!
That leads to excellence.
In the same way, I see no problem with wealth redistribution via things like mill rates for property taxes, as per the justification put forth by Adam Smith on that particular subject: Since wealthy people have larger houses, with more things in them to protect etc., it is only fair that their property taxation be higher (as per assessed real estate value, which again becomes a controllable consumption tax, rather than each citizen paying exactly the same amount regardless of their real estate value) because they have more to protect, and therefore are more in need of things like fire and police services, and often times will use them more. Fair enough.
However, progressive taxation on income is a silly invention, that retards economic growth, and removes the motivation to excel by merit There is a reason that Karl Marx puts this out in the Communist Manifesto – because he wants to destroy Capitalism, and civilization.
Also, anything the government touches generates about 30% wastefulness compared to the private sector. And while the government needs 15 workers plus 25 supervisors just to change a friggin’ light bulb, the private sector manages to crank out a miracle a minute. We should stop punishing the private sector and people with initiative, and start punishing the government instead.
Most people are just willfully blind to what they are saying the government should do.
For example: With the Haiti Earthquake, the Canadian government offered to match any private donations made by the people to Haiti. And here everyone goes off nodding their heads, “Yup, yup. T’is a good thing they do that. Uh huh, uh huh.”
No it isn’t! I not only feel like taking out my whacking stick on the government, but also on the people who feel this is a good thing. Hosers!
.
What is really going on is they are saying, “Geez Fedrz, how generous of you to reach into your righthand pocket and give away $100 to Haiti. So, allow us to reach into your lefthand pocket and match that with another $100 of your money.”
“Whack!” Fedrz swings his whacking stick.
”Whack! Whack! WHACK!”
Assholes did the same thing with the Tsunami, after the citizens donated hundreds of millions of dollars privately, and the government didn’t want to appear cheap. I guess better a thief than a cheapskate, eh?
Those two things, wealth redistribution & ensuring individuals with merit are educated properly to promote competitiveness, are in opposition of eachother. It’s like pushing and pulling at the same time.
The only type of wealth redistribution scheme that has any merit at all is a consumption tax. This is what the USA (& other places in the West) used to have, and it is also what many tax havens such as the Cayman Islands or the Turks and Caicos Islands still have.
For example, in the Caymans, you pay about 33% tax on what you spend. (Or import). Not on what you earn. That is why things are so expensive there – but, they have no income tax, property tax, inheritance taxes, capital gains or dividend taxes etc.
And this does promote wealth distribution, because rich people spend more money than poorer people. But, if a person were to work hard, and be thrifty at the same time, it is much easier to pull ahead and start getting your money to work for you, rather than you working for your money.
For example. If you live here in Canada, and gross around $4,000/month, after taxes and deductions, you will be left with around $2,700-$2,800 net take home pay. And from there, you pay for your living expenses, most often eating it all up.
However, the other way around is, I earn $4,000 a month, with zero tax, but I pay $2,750/month for living expenses plus $925 in consuption taxes for my goods, totalling up my expenses, including tax, to $3,675/month, and I am now $325/month ahead of the game than the other way, and since I am now batting above my living expenses, and I can directly control my living expenses, hot damn am I going to be motivated to hustle my ass to make some more money. Why, I might even get up off the beach and put in a few hours overtime!
That leads to excellence.
In the same way, I see no problem with wealth redistribution via things like mill rates for property taxes, as per the justification put forth by Adam Smith on that particular subject: Since wealthy people have larger houses, with more things in them to protect etc., it is only fair that their property taxation be higher (as per assessed real estate value, which again becomes a controllable consumption tax, rather than each citizen paying exactly the same amount regardless of their real estate value) because they have more to protect, and therefore are more in need of things like fire and police services, and often times will use them more. Fair enough.
However, progressive taxation on income is a silly invention, that retards economic growth, and removes the motivation to excel by merit There is a reason that Karl Marx puts this out in the Communist Manifesto – because he wants to destroy Capitalism, and civilization.
Also, anything the government touches generates about 30% wastefulness compared to the private sector. And while the government needs 15 workers plus 25 supervisors just to change a friggin’ light bulb, the private sector manages to crank out a miracle a minute. We should stop punishing the private sector and people with initiative, and start punishing the government instead.
Most people are just willfully blind to what they are saying the government should do.
For example: With the Haiti Earthquake, the Canadian government offered to match any private donations made by the people to Haiti. And here everyone goes off nodding their heads, “Yup, yup. T’is a good thing they do that. Uh huh, uh huh.”
No it isn’t! I not only feel like taking out my whacking stick on the government, but also on the people who feel this is a good thing. Hosers!
.
What is really going on is they are saying, “Geez Fedrz, how generous of you to reach into your righthand pocket and give away $100 to Haiti. So, allow us to reach into your lefthand pocket and match that with another $100 of your money.”
“Whack!” Fedrz swings his whacking stick.
”Whack! Whack! WHACK!”
Assholes did the same thing with the Tsunami, after the citizens donated hundreds of millions of dollars privately, and the government didn’t want to appear cheap. I guess better a thief than a cheapskate, eh?
.
.
“Whack!”
But, if any one feels the overwhelming need to redistribute any of their hard earned cash to someone who needs it… my pockets are feeling a little light – especially after the gov’t has been pick-pocketing my generosity, as well, my beer kitty jar could use some wealth redistribution from other people’s labours.
“Whack,” goes the whacking stick. “Keep your theivin’ mittens outta Rob’s pockets!”
Related: The Pitfalls of Inviting More Government Into Our Lives
.“Whack!”
But, if any one feels the overwhelming need to redistribute any of their hard earned cash to someone who needs it… my pockets are feeling a little light – especially after the gov’t has been pick-pocketing my generosity, as well, my beer kitty jar could use some wealth redistribution from other people’s labours.
“Whack,” goes the whacking stick. “Keep your theivin’ mittens outta Rob’s pockets!”
Related: The Pitfalls of Inviting More Government Into Our Lives
