Taxes

Mark Twain is attributed as saying “The only thing that is certain is death and taxes”. Smart fellow! Liberty dies when someone discovers taxation. I would like to call everyone’s attention to some “interesting” facets about taxation:

(1) Taxes are ill-defined

Everybody know that the money extorted from us that we send “voluntarly” to various strange places. Washington DC. One or more of the various state capitals (Yes, NY taxes NJ residents!) Posibly multiple counties and local municipalities. And any mob of policiticans that can figure out an entity to futher mug us. In this list, I would include: “income” (whatever that is), sales and use, and others of such ilk. We can quibble among our selves that “fees” can be taxes if the are unavoidable (i.e., DMV) and / or if they just go into the general fund (i.e., taxes on gasoline for the roads that don’t get “dedicated” to road construction). Personally I woudl assert that to be “user fee” regardless of how absurd is a tax UNLESS it can be avoided AND it is unarguably dedicated.

But I would assert that there are other forms of taxation that we lose sight of:

(A) Mislabeled “insurance” — social security, unemployment, disability, etc etc etc ARE taxes. Anything you get from them should be considered “lottery winnings”.

(B) Inflation is a hidden tax on assets. If you put a c note in your wallet in 1970 and left it there til today, it’s puchasing power declined 95%. You have paid a 95$ tax. It has the interesting effect that it escalates other taxes. You pay high real estate taxes on inflated property values. You pay higher estate taxes on the inflated assets in your portfolio when you die.

(C) Regulation is a hidden tax. Every business makes you pay more to cover the added costs. It can also mean certain goods and services are unavailable at any price.

(D) Estate taxes are hidden. You get stuck after your dead. And, everyone talks about inheritences coming to the beneficiary “tax free”. My tush! The estate paid a fortune in taxes and “fees”.

(X) Cost of compliance is a hidden tax.

(Y) The opportunity cost of all this is a hidden tax.

(Z) Note that I don’t consider the state lottery a tax, despite its description as a “tax on the poor” or a “tax on stupidity”.

 

(2) Only individuals pay taxes.

Companies merely markup their prices to cover the cost of taxes that the company pays. So, the price in the market place is the true economic cost and a large glump of accumulated taxes. The problems is that we can not differentiate the dividing line. So, if anyone says, included the hosts of FTL, that they pay X per cent, then you shoud quibble because no one can know EXACTLY how much they pay.

 

(I’m tired for now!)