The tweets that flame

Yes, it seems harsh, and it is not meant to be. You see, this might be the tweet of today, but the setting has never changed not for three decades. Even as political windbags are all claiming that they are doing their bit, they are actually relying on emotional events to keep the flames going, especially when they do not resolve anything. My blog has covered it for almost a decade, and I have been stating it for another two decades. And this tweet is bringing it to the surface yet again.

People are all about ‘taxing billionaires’, ‘taxing corporations’, and ‘taxing churches’, the last one is nice, I hardly ever see that one. So let’s take a jab at this (yet again).

Taxing Billionaires
Yes, it is all about discrimination, taxing the billionaires. I still hope to become one, that is if Papa Smurf (Sergey Brin), Clever Smurf (Larry Page) and optionally Tracker Smurf (Sundar Pichai) wake up and take notice. OK, wake up is incorrect and uncalled for, they are likely awake 18 hours a day and they optionally take notice of a dozen matters every hour of every day, but so far they are not noticing my 5G IP (darn).  So at what point will we ‘tax’ the billionaires? Will we check their bank accounts and levy it for 20%? At what point do you think will these 614 billionaires move to Canada, or Europe and leave the US completely bankrupt? What do you think happens when $5,000,000,000,000 moves to another nation? I have another issue, these people made money in whatever way, and not all are a Lawrence Elliot, Mark Zuckerberg or Google top. As such do you really want the creative top of the world to vacate to another place?

Taxing Churches
There is a larger stage here and I am not against taxing the churches. The Catholic church has pillaged in their own way the planet for centuries. So will you tax one (discrimination) or tax all? It is a slippery slope, and ever as it is not the worst idea, it is a trap waiting t explode in all our faces, we just do not know how. 

Taxing corporations
They are getting taxed, it is the degree of required taxation that is the issue. 

The point is not taxing them, it is overhauling the tax laws and on both sides, both democratic and republican presidents, they all failed. From 1993 onwards the USA has had two democrats, two republicans and now another democrat President, the last 4 all failed to overhaul the tax laws.  As such, blame Bill Clinton, George W. Bush, Barack Obama, and Donald Trump for this failure. In April 2019 we saw “Amazon, Netflix, IBM, and General Motors are among the 60 big companies paying $0 in federal income taxes in 2018”, not one, not two, not three, but 60 big companies all avoiding taxation, avoiding not evading. Evading taxation is illegal, avoiding it is only paying what the letter of the law tells you to pay and that is how it should be, as such tax laws need an overhaul and this has been clear for 30 years, so why is it not done?

Because we see flames, we react to flames and no one is considering (intentional or not) to push legislation to overhaul the tax laws. It is the same joke again and again. Tax and gun laws are trodden on, we see all the crocodile tears, but people die and die again and until gun laws are truly overhauled, starting by giving the ATF the teeth they need to take a chunk out of guns, this will continue. And the media knows this too, but they cater to their shareholders, their stake holders and their advertisers and none of those three are happy about overhauling tax laws. 

And until the people unite complaining to the media nothing will change. It is funny that a valid objection by a journalist regarding an Oprah Winfrey interview, where we see a reported “Over 57,000 complaints have been delivered to Ofcom” regarding the point of view of a reporter, yet I am willing to bet that NONE of those 57,000 people ever complained on the need to overhaul tax laws. And we notice people complaining that nothing gets done, well, does this not start with you? A person can tweet to high heaven, but that does not change things. Getting hundreds even thousands complain to electable officials never happens (and the politicians, as well as corporations are happy about this), they need the rich to pay for their reelections and that will not happen when tax laws are overhauled.  

This is also not limited to the US, it is a global issue and if people really want poverty to go away, you need to demand an overhaul of the tax laws. It is really that simple. But beware, when you push corporations away it has other impacts. California is now learning that the hard way as more and more corporations are moving to Texas. So this is a much larger slippery scale and their will be consequences, no matter how we slice that tax cake.

But I am not against taxation, but I too will take the tax avoidance route when called on, it is not because I am against paying taxation, I am against paying too much taxation, that is why tax laws were created. A paper in 2014 gave us “‘Tax avoidance is a taxpayer’s course of action in line with the letter but contrary to the spirit of the law’. Definitions phrased along these lines can be found in many policy statements and legal provisions. They are common, but nonetheless problematic. It is the ‘spirit of the law’ part which poses problems. These difficulties not only have theoretical import; they also cast doubt on the legitimacy of efforts to combat tax avoidance. And the skeptics – ‘non-believers’ in the spirit of the law – are many.” The paper by Hanna Filipczyk gives us a lot in that regard, on the problems and on the 27 references that show that this has been going on for a long time, and until politicians stop wanking about the spirit of tax law and do something about the letter of tax law, this will continue, and its continuation will never cease. And the media is making it easy for them as they cater to part of that group. Should you doubt that, then wonder when the media told you to that to achieve a proper level of taxing, tax laws need to change. Do not take my word, check what THEY said, you will see I was right and I have been correct in this case for well over a quarter of a century. 

It was never hard, it was never complex, it merely needed to be done and the previous 4 presidents did not achieve it, why not? I will let you ponder that part for a little part longer.

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Filed under Finance, Law, Media

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