don't pay taxes

What? I don’t pay taxes?

Everybody needs to pay taxes, right?

Wrong!

How is that possible?! You wonder

If people would stop paying their fair share the country would fall apart! The roads would crumble and the hospitals would burn to the ground. The schools would bla bla bla…

Well, if you keep reading to find out that this is not the case:

 

(1) A Country Doesn’t Need To Raise Taxes To Function

That is right. I live in a country where there are no taxes. No income taxes, no sales taxes, no profit taxes, nothing. The country is called the United Arab Emirates.

Specifically: the emirate of Dubai (and no, this emirate ran out of oil long ago…)

 

So how does the government collect its revenue? Very simple. It does business. It runs hotels. It runs construction companies. It also collect fees from people who set up businesses. It provides the official legalization of documents. It sells water and electricity.

And in everyday life?

If you drive on the road you pay a road tax.

You get emergency health care for free. But for additional health care you need to be insured. There are private clinics who really compete with each other so the costs for health care are relatively low.

Schools are expensive. But in this day and age you don’t have to send your kid to school. You can have them do online customized education that is better than what most of the kids in the West gets shoved down their throats in boring public schools.

The government here is small and does not get involved in private affairs. You are responsible for your life.

…And you only pay for what you use…

 

(2) Governments Become Bigger, Not Become Smaller…

Governments rarely (if ever) become smaller. Why?

Human beings contribute value to their lives and work. They need to feel what they are doing is important. Regulators will regulate. Central planners will plan.

And when they fail, they simply conclude they did not do enough.

When for example the Houston Bombings happened the NSA did not say: “well, we spend all these trillions to spy on every living human being on the planet and we can not prevent this from happening. Lets all go home and watch Game of Thrones…”

The same with the financial system. It is one of the most regulated sectors of industry around. But yet we see scandal after scandal. And then there are calls for more regulation? This only makes it more difficult for new and innovating companies to come in and wash away the old. Terrible policy.

 

A professional company will always look on how the cost can go down to maximize profit. In the public sector getting costs down will mean that next year you will have a smaller budget. This feeds the culture of inefficiency and the art of work creation.

And the current economic dogma that government spending borrowed money = economic growth.
Whatever.

Where am I going with this?

Simple. It is never enough. It does not matter how much you pay. It will be spend. And next year they will be back for more.

I can think of better things to do than feeding the ever growing monster.

Or worse…

 

(3) I Don’t Want To Pay For Government Corruption

Let me rephrase that, I don’t want to pay for fad bureaucrats spending my hard earned wealth on their fraternity friends and other special interest groups, elite think tanks and fancy receptions in expensive hotels that lead to nowhere but to keep the circus going.

The state divides society into two castes. The tax payer caste. And the tax consumer caste. The first goes about the business of wealth creation. The other about the business of wealth confiscation.  [1]

There is no in between.

What we are seeing lately that the latter (this is what I call the parasitic class) is growing and is really hammering business and the middle class.

Creating wealth is getting ever more difficult, with all the tax and regulations one must be mad to start a business in the West nowadays. Especially when it involves having a lot of staff or actually producing something.

 

That is because there are an awful lot of special interest groups skimming something of the top.

According to a EU report corruption has costs EU citizens a whopping 120 Billion Euro (with a B) a year, also admitting that the real costs “likely will be much higher”. [2]

Add to that all the tax payer money that is funneled directly to the banks in stimulus, millionaire farmers in subsidies, sound walls to protect cows, roads to nowhere and parks that nobody is using.

I was done with the EU when I learned first hand how in Rome EU funds are divided by the mafia. Read the following article [3] that discusses this topic but there is tons of information out there.

All of this is very dramatic.

Not from my money though…

…because I don’t pay taxes…

 

(4) People Are Not Helped By Becoming Dependent On Handouts

Anybody who looks objectively at history can see a trend. The countries that embraced individual freedom and capitalism created an increase in wealth across society.

Countries that embraced hard core socialism have become poorer across the board. Let alone the millions of people who were killed in the process.

Even nowadays, the difference in between Venezuela and Colombia, North and South Korea and Chili and Argentina (once the wealthiest nation on earth) is staggering. Almost all socialized countries are worse of in respects of economic prosperity, corruption and individual liberty.

The magical word is equality. But I don’t give a damn about equality.

There are big difference in people and some work much harder than others. Some prefer to play the banjo all week over working as a manager for 70 hours.

What I wish is a fair society, where everybody that works hard could erase himself from poverty, and the rule of law applies to everybody.

Where a married couple can raise a family without having the stress of having to both work full time and long hours. People in the West are taxed up to fifty percent of their income. Without taxes only one of them would have to work (or they could spend twice as much).

This existed in the past in the United States (the famous American Dream). But now decades of government intervention have killed this dream and despite all the social policies and “wars on poverty” inequality is bigger than ever…

The argument that we need to pay taxes to help people in need is also not valid. Free handouts kills mentality and motivation and kills the need to acquire the skills to make an honest buck. How well is someone helped when they are thought that they will get everything they need only because they exist? When a single woman only can improve her situation with getting money for every child she has?

Thomas Sowell has written multiple books on the effects of welfare on society. Almost always the situation worsens. This especially applied to minorities. I suggest you look into his work if any of my ideas seem alien to you… [4]

 

And lets be fair: you don’t need the government to tell you to help you fellow man…

Fine… fine… if a society wants to provide a safety net for those in (temporary) need that is a great thing. But it should be small and regionally, or privately arranged. This way everybody involved will have a feel as to what happens with the money and less will be skimmed by the overseers and bureaucrats. It will also get people more engaged and likely to get of their ass and actually help someone in need.

One of the side affects is that people who pay a lot of taxes feel that they do enough for society. They transfer their responsibility as human beings to the state. There is nothing social about this.

Not that there is anything social about socialism anyway…

 

(5) You Don’t Owe Anything To Anybody

You come alone into this world alone and you leave alone. In the meantime you have to make the most of it.

But since you are a human being you are a social creature. Your entire life you will interact with other human beings. And you can become a tax payer or a tax consumer (or something different like me, ha!)

When your society is not to distorted by government intervention you will realize that your wealth is a reflection of the amount you serve the needs of others.

The more people you help to get what they want, the likelier it will be that they will give you what you want.

But nobody should force you to do anything. When you don’t want to serve others, when you don’t want to produce anything. Fine. But don’t expect someone to hand over their wealth just because of the fact that you showed up and have the right to vote.

Don’t fall for the moral superiority of the vocal special interest groups who bring up all sorts of reasons as to why you should pay your fair share. There is no such thing as the common good. It is only someones interpretation of what is good for all and you have to pay for it.
When push comes to shove you will be alone. One only has to look how people behave when there is a food shortage in a supermarket to show how thin the layer of society is.

If every person in this world lives a honest life and devotes himself to providing goods and services (weather small or big) to the lives of his fellow man this should be more than enough.

Don’t be fooled. The parasitic class would not doubt for one minute to confiscate your pension or your bank account during the next “economic crisis” or “emergency” even when you have been an honest tax payer your entire life.

If I could give you one advice it is to:

Become a free and honest hard working individual with the aim to help your follow men.

But pay as less taxes as legally possible…

 

You you want to find out to stop paying taxes like me? Read This…

 

 

[1] Murray N. Rothbard. 2001. Man Economy and State with Power and Market – Mises Institute (p.1151)

[2] European Commission. 3.2.2014. EU ANTI-CORRUPTION REPORT – Report from the commission to the council and the European Parliament

[3] Becker, G., Sowell, T., Vonnegut Jr., K. 1982. Discrimination, Affirmative Action, and Equal Opportunity. The Fraser Institute.

[4] http://www.spiegel.de/international/europe/southern-europe-plagued-by-corruption-and-political-mismanagement-a-847229.html