Showing posts with label Taxation. Show all posts
Showing posts with label Taxation. Show all posts

Friday, November 29, 2013

Tax Evasion is Not a Crime. Simply a Refusal to Share Wealth


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If aliens from outer space were to visit us today, there would be a lot of frenzy. It would be expected as such because it is an extraordinary event. But then if such alien visit has to happen regularly and supposing they're here to stay, what happens next is that people will get used to aliens. The alien event will no longer be as extraordinary as the first time.

When something is already going on for a long time, humans will tend become at ease with it. The thing will be treated just as normal and typical.

Same with taxation. At the early times of civilizations, the idea of taxation as imposed unto the members of a society must have been an alien idea to all people. That is why even a minuscule rate imposed could result into a revolt. But then as the society rolls on, taxation became one of the typical stuffs in daily social life. People contend that such system is necessary and that paying taxes is an absolute duty of every individual.  

Taxation begun as a repugnant idea. But it did not remain as such through times. People got used to taxation already for a long time and they now thought it is already normal. People, over time, got used to it. 

Tuesday, November 26, 2013

I Own a Part of Your Income and Property


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What would be MY justification that I own a part of my neighbor's property or income? 

What is the difference between a man who refuses to pay taxes and a man who demands it? It is said that the former, the tax evader, is an evil person. The latter, the tax collector, is considered a public servant. 

The tax evader smuggles goods to get around tax regulations. The tax evader refuses to disclose his actual earnings to minimize taxes. He is called evil. On the other hand, the tax collector demands taxes with a justification that such collection is to fund legislated compassion programs like reproductive health, and subsidized education, and food for the poor. The fund is for the needy. He is called saint. 

As long as society espouses the above idea, everybody must give-up ownership of a portion of his or her income and property to an internal revenue employee. No one must worry a bit because that internal revenue employee is a public servant who can be trusted. 

Anyway, I despise that kind of society. Taxation is a repulsive idea to me. I do not have the smallest belief that anyone has a right to somebody else's income and properties. 

Monday, December 10, 2012

A Simple Tax Computation to Expose How Slavish Idiot We Are


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Philippines - Let me show you how taxation is a form of slavery.

Assuming you earn P8000.00 semi-monthly with 2 dependents. Married or Single with dependents are already categorized as the same. For simplicity, let's not include overtime pay and deductions. BIR withholding tax bracket says that for the above specs, you are in the bracket of not less than PhP7,083.00 and not over than P10,000.00, with initial tax of P354.17 + [20% x (8,000-7,083.00). The computation of your tax would be: 
Tax semi-monthly = P354.17 + 183.40 = P537.57

From above computation of semi-monthly tax, your annual tax is:
Annual tax = 537.57 x 2 x 12 = P12,901.68.;

While your annual gross income is:
Annual Gross Income = 8000 x 2 x 12 = P192,000.00.

Assuming you work 22 days per month (or 264 days per year), with P16,000 monthly salary, your rate per day is: Rate per day = P727.27.

Here it gets intriguing. Your total tax of the year, P12,901.68, is equivalent to how many days of your work? To get the sense out of it, divide your annual tax by your salary per day, it will show you that there are about 18 days of work equivalent to your annual taxes.In other words, you work 18 days per year for no pay at all because the amount of P12,901.68, supposedly yours to take home, goes to the treasury of the state.


But pro-government taxation individuals would contend that you pay your taxes not for nothing. They say, your taxes comes back not in the form of money but in forms of various services like security, roads, judicial, health, education among others.That seems a good point. But what was missed?

It is time to point out that being against taxation doesn't mean one is against services. Social services are still available yet with a very important distinction: the coercive power of the government to tax doesn't exist. Free-market will deliver it.