Some of you might think it is good that the United States Congress is considering a billionaire's tax. After all, it is time for those greedy bastards to pay up.
Is this your view on things?
Well, I have news for you: this is going to be a tax on everyone. If one takes time to learn about history, that is always what happens. The taxes raised while the definitions of "rich" are changed to ensnare more people.
Income Tax
In 1913, one of the major pieces of legislation was the introduction of the Income Tax. This was something that was part of a broader plan that radically alters the United States.
Many were in favor of the income tax because it applied to everyone. This is something that most people believe: they should personally pay more in taxes.
Catch you off guard. Of course few believe he or she should personally pay more in taxes. They why was the Income Tax favored and how did the politicians pass it without being drawn and quartered?
The answer is simple. It was sold as only applying to the rich. As we all know, this is not the case.
Here are some of the numbers.
The Revenue Act of 1913 ushered in the income tax. This one move forever changed the way of life for most American adults.
Here is the kicker: the tax was 1% applied to those making over $3,000. This affected a very small percentage of the population. In fact, due to deductions, less than 1% of the population had to pay it.
Certainly things have changed.
Value Added Tax
This is an example for our UK counterparts. Those who live in that country are well aware of this tax.
According to Wikipedia, the VAT was enacted to replace the onerous Purchase Tax. Notice how the tax rate bounced around.
Purchase Tax was applied to the wholesale price, introduced during World War II, initially at a rate of 33 1⁄3%. This was doubled in April 1942 to 66 2⁄3%, and further increased in April 1943 to a rate of 100%, before reverting in April 1946 to 33 1⁄3% again.
Isn't that just special. The tax rate was doubled then went up another 50% before being reduced. This was a tax applied at the manufacturing and distribution levels.
It was then replaced with the Value Added Tax. This one was started in 1973.
Long story short, the tax started at 10%. Today, it is at 20% reaching points of being as high as 25% in some things.
Here is a table showing the history of the rates.
To be fair, not everything is taxed since there are exemption (such as food). However, the point is we see how the tax rate, over time, tends to drive upwards.
Redefine Rich
The easiest way for politicians to alter the taxes applied is to adjust the definitions. They do this by changing the tax brackets. One time the upper tier tax rate is applied to those over, say, $1 million. Then they will drop it to $750K or $500K. Eventually, rich is those making $250K or more.
In other words, what was sold as a "tax on the rich" gets altered to cover more people.
Here is a chart done by the University of Princeton Economic Institute. We can see how the tax brackets were changed over the years.
Source
The point is there are a number of ways for them to monkey with the taxes. What is vital is to understand these never apply to who they claim when introducing the tax. It is always under the umbrella that "it is a small tax on the rich". This is exactly how the billionaire tax is being sold.
Of course, why not tax those billionaires? After all, they can afford to pay a bit more.
Well, how long until it becomes the millionaire tax? Again, millionaires can afford to pay a bit more.
Naturally, there are other ways to cast a wider net. How about taxing people the unrealized gains? Think that absurd? It already was proposed. This would mean that if you had a gain on an asset, such as a stock or cryptocurrency, you would owe the tax on that gain whether you sold the asset or not.
I am getting a bit off track here but this just shows the length politicians will go to for taxation. Enough is never enough.
So, the Billionaire Tax sounds like a great idea. Unfortunately, the history of taxation is that it never stays in the bracket they profess when selling it. Of course, they are also very willing to change the brackets to cast a wider net.
It is time to learn the lessons from the past. What is sold as a tax on the rich ultimately ends up falling to the middle class. Many taxes end up being regressive which end up hurting the poorest sections of the population.
Believing anything politicians say is pretty foolish. And to believe any of them have any idea what their doing is also a major mistake.
If you found this article informative, please give an upvote and rehive.
gif by @doze
logo by @st8z
Posted Using LeoFinance Beta
Yup, a scam that's being sold sold to the naive masses.
Your Billionaireness is measured in net worth, not cash. Do they tax all of it or do they tax savings, income, etc? I'm not familiar with the plan but I guess anyone (with enough resources) who disagrees with it could just swap countries. The government wins, the country loses.
Then, taxes do not go where you think they go. They are mostly allocated to serve politicians' egos nowadays. Spending them free money to undo what the opponent's administration did sounds like a plan. And some candy for the masses.
I'd rather trust them entrepreneurs to distribute the wealth while they spend it on projects, rather than the government. I saw people moaning about money being wasted by throwing rockets at space. By people who cannot get off their satellite-reliant gadgets but that's not the point. The point is, the money were not spent at alien brothels and the like, they were spent on Earth so they can continue to move around here.
With each move being taxed, of course.
Initially, it's sold as...
And then it turns to...
If only there was accountability for that...
Now most countries are promoting similar laws...
Everything is so, it's a pity many do not even think about it, the rest do not understand or consider it a conspiracy...
I agree, so do I. However, there is a possibility that they will do the same as the government... Power makes people insatiable. But I would try to trust them. After all, if you do the same thing all the time, it's stupid to wait for another result. And we see that now we are moving in a spiral, gaining momentum of insanity for me...
Yup, you have a point there. Perhaps I was getting a bit idealistic there, instead of realistic.
That is going to be available to all of us going forward. As decentralized network states evolve, we are going to be able to choose what "jurisdiction" we operate under. Hence we get to choose our own laws.
Posted Using LeoFinance Beta
Some hope is being built. Material boundaries shall still apply, though. At least, there be more and more options.
I think they've got that covered, at least it's what it sounded like after they came out of a meeting abroad one day the last couple of weeks. They are going to charge up to a fifteen percent tax, I don't know if it's on the country or the company's who shelter in low tax countries. I'll see if I can find the link to it.
The tax is for everyone but people think is for the rich. Once you are doing any job that they pay you in your bank account, you will be paying your tax from there.
Posted Using LeoFinance Beta
The middle class is being destroyed and I wouldn't be surprised if that disappeared soon. After all, the rich can afford to pay for the best accountants and laywers to take advantage of the loop holes.
Posted Using LeoFinance Beta
Cryptocurrency is the way out of that. Look at some of the money being made already.
We simply need to ensure that it is out of the reach of the governments of the world since they will seek to sabotage it if they can.
Posted Using LeoFinance Beta
Wait so the rich person tax doesn't effect the rich? How is it a rich tax then? People almost believe anything they hear now days.
It might start that way but politicians, at some point, realize they are not getting enough money out of it, so they have to expand it.
Of course, part of the problem might be that the wealthy end up bribing their way to exemptions that means they are not taxed anyway.
It is simply how things appear to world regarding tax. It is the same everywhere, no matter what the party affiliation.
Posted Using LeoFinance Beta
View or trade
BEER.Hey @taskmaster4450le, here is a little bit of
BEERfrom @pixresteemer for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
!LUV
<><
@taskmaster4450le, you've been given LUV from @tin.aung.soe.
Check the LUV in your H-E wallet. (3/3)
Try to dig taxes on Venezuela xD You will see how crazy socialism is.
Well, I was certainly having a decent day before reading this.
Though I haven't followed the billionaire tax saga, this is... worrying. To say the least. It does however tie in perfectly with the history you mentioned, and the general tendency of inserting unfavourable policies under the guise of "just a little bit from those who can give it".
Politicians lie... consider me shocked and appalled.
Trojan horses are a bitch.