30 THE FREELOADERS
Income Tax is the current base on which Government collects money to finance the amounts which they expend for the services they provide, for the support of those less fortunate in our society and for all of their other expenditures (worthwhile or not). Income Tax is so detrimental to our economy, and so unfair to taxpayers, that extensive complications have been added in attempts to overcome its faults. Even with all of its complicated amendments, there are still many freeloaders in our society. Many sources of income, including the two below, are simply excluded from taxation.
Consumer debt ! Purchasers made, or cash advances, on Credit Cards, that becomes debt, are income that can add to ones standard of living.. Those amounts, like amounts received as wages, are amounts received and can be spent. They are used for “out go”. If they are “out go” they must also be “in come”. If the credit card balance is never repaid, then, like wages, it is untaxed income to the person who has spent it. If it is never repaid to the credit card company, by the person who spent it, then it is being repaid by those who pay the 22% + fees charged to others who have credit cards. The credit card companies say that their high interest and fees are the result of those “Freeloaders”, not the result of the companies giving credit where they should not. So those “Freeloaders” not only have others pay for the income they have received from their credit card, but they have also avoided paying income tax on that income.
Capital Gains ! Cash received is income. Cash not received is not income. If it can not be spent it is not “in come” because it can not be “out go”. But because our Government uses the wrong tax base, special treatment has been given to “potential income” accumulated over a long term. AH! But what about inflation? Those of our society who do not have assets to grow through inflation, suffer from it even more than those who do have assets. With technology, and efficiency of production, prices should be going down, not up. Wages should be buying more. But they don't. Who are the “Freeloaders” benefiting from “income” that is not “income”, income that is “Capital Gains”? Mainly those 1% or 2% of the population accumulating 90% of the wealth. But who votes in selecting the Government who provide this exemption for the rich. All those people in the declining middle class who believe the advertising, and vote for, the Political Parties.
If the tax base was “standard of living” (consumption) these items would be correctly recognized as “income” but would not be taxed, unless they became consumption. A just society should be able “to each according to their needs”. It should also encourage “from each according to their abilities”. Without resources the abilities of each can not fully utilized. Wealth, unconsumed income, are those resources, that, left with those with ability, benefit all other members of the society. Left with those who produce, rather than paid to Government, who produce nothing, benefits all society. It is a common trait of those with ability, to defer consumption, in favour of producing more wealth.