Bad Taxes

People should be encouraged to hard work, thriftiness, good investment, and long suffering for the good of their family. These are Christian virtues. These are the virtues in Catholic Nations of the past that turned poor countries into rich countries all over Europe and the Americas. Today however we want to punish those who are wealthy because of these virtues with high taxes. Those who have failed to get a good education, or who do not like to work hard, or who spend their money on pleasures we reward with low taxes. Tax should not be a welfare system or a way of charity to the poor. Tax should be as equal for everyone as human justice, human rights should be. How can we say that all will have equal rights if the tax is not equal.

Taxing tax is common but is immoral. I sell a product to a distributor and the distributor sells it to a outlet, and the outlet sells it to a contractor and the contractor sells it to a consumer. I sell it for $1.00 and am charged 10% sales tax. The Distributor buys it for $1.10 with the tax. He sells it to an outlet for $1.20 and is charged 10% tax or 12 cents. The outlet pays $1.32 and adds 20% profit. The contractor buys it for $1.60 plus 10% tax and pays $1.76. He sells it to the consumer with a 10% profit and adds 10% tax. The consumer pays $2.12. The government has made a profit on taxing its own tax. In the end the tax on the product is 72 cents or 22%. The problem with this is that it is a hidden tax that the public cannot see or figure out. Better that there be one tax that is clear and understandable to all.

Property is what a person owns, like clothes, tools, furniture, a home, land, etc. When he buys this property he pays a tax on it. When he sells it he pays a tax on it. If he just keeps it he does not pay a tax on it. This should be true of all his property but in most countries it is not the way of it. When it comes to property such as a home or land he pays every year for what he already paid for when he bought it. Therefore land and home owners are taxes but renters are not. Again punishing virtue. Unless a man saves a great deal of money he must sell his home when he retires because he can no longer pay the yearly tax on his home.

If he is able to pay this tax until he dies, his children will pay tax again to inherit it and in many cases they cannot pay this tax and must sell off the inheritance.

Tax deductions for charity or work expense or school are good in some ways because they can encourage things that a Nation wants to encourage. But this creates a bureaucracy that is uncontrollable. Consider instead a tax system that taxes every exchange of money at the source - wages and product purchase and then has no other tax system: no tax forms, no tax at the end of the year, no tax collectors, no audits. The government will have a steady daily income and the people will see what they are paying on a weekly and daily basis.

All government services such as postal, harbor, airports, police etc. should make a profit or at least pay its own way or it should be given up to private enterprises. Roads should be built entirely on gas tax and that tax should hot be used for anything else.