This article is making a point I have made in the class and on the list, here and here that is being self-employed is promoted by government through tax breaks. The Wall Street Journal makes this sound amazing and new. The article is zipping around the internet, and most of the comments are by people outraged that anyone would avoid paying taxes, or in other words not pay taxes not owed. Pretty weird.
if it is not necessary to pay a tax, it is necessary to not pay the tax. Government never uses money as appropriately as a citizen, so paying an unnecessary tax is misdirecting money. I suspect the pro-pay-the-tax crowd does not pay extra on their tax retursn, they just want other to pay more.
The funny thing is taxes pretty much do not matter one way or the other. Ultimately, the consumer pays all taxes. Taxing a corp is silly since any tax is passed on, although most corps pay no taxes, like GE, so paying a tax or not paying a tax means little to GE. It just means if GE is not taxed, the consumer is paying less overall.
If they raise taxes, who cares, it means all prices rise, but if the tax is even, then the prices rise the same.
The damage is not the tax, it is the people who get paid from tax money, who then right regulations that kill business and in turn reduce tax income, and limit the range of goods and services a free market (partially defined as tax-free) will offer.
The bad part of taxes is not we pay them, the bad part is what the taxes go to pay for.
Thursday, April 14, 2011
Self-Employment, Lifestyle and Taxes
Posted in taxes by John Wiley Spiers
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