Tax evasion is a numbers game. Let's take the hypothetical example of a braying young aristocrat who has an unearned income of £100,000 per year, this money being accrued through an offshore trust fund that his over-privileged mummy and daddy set up for him when he was born.
Now, let's say this indolent young nobleman resents paying the 28% capital gains tax due when repatriating the money back into the UK and decides to consult a corrupt tax accountant to see what measures he might take to jew Her Majesty's Revenue & Customs out of the money he would owe them.
That accountant is likely to advise the slippery young gent to divide his trust fund income between 10 separate tax dodges, with each caper laundering £10,000 each. By doing this, if the taxman did stumble across one of these wheezes and the tax-dodging toff is duly prosecuted, as a punishment he would have to pay the tax on the £10,000: £2,800, plus a fine equivalent to that amount, so a total of £5,600.
However, our upper-class fraudster would not be too bothered by this penalty because he would still be saving the tax due on the remaining £90,000 – that is £25,200 - and would, therefore, be £19,600 better off overall as the result of his portfolio of tax evasion schemes.
Now, on an apparently unrelated issue, manufacturing companies in the West find it difficult to compete on cost with rival firms based in emerging economies such as India because these countries tolerate child labour, have no minimum wage and impose very few health and safety regulations on employers.
We could punish tax evaders more effectively and help our manufacturing industry out at the same time by sending convicted tax evaders to secure workhouses run by manufacturing companies. These firms would pay the inmates £2.65 per day, equivalent to the average pay of a production worker in India , and these wages would be forwarded directly to the government to pay off the offenders' fines.
So, in return for providing rudimentary accommodation (a sleeping mat next to the machinery would be more than sufficient for these creative-accounting criminals) and basic meals (insipid gruels and stale bread would be more than these tax-fiddling felons deserve), the workhouse owners would have a workforce that they could pay the same as their third world competitors.
Meanwhile, an important message would be sent to wealthy individuals who believe that they are entitled to benefit from the country's publicly-funded infrastructure without contributing to the cost of it and that message would be: "You are a dirty, cheating scumbag and if we catch you fiddling your taxes you will be dealt with like the lowlife criminal that you are."
Tax evasion is not a victimless crime: if rich tax-evaders paid their dues we'd all benefit from better public services or pay lower taxes, or both, and that's why tax evaders should be sent to workhouses.
What do you guys think? Anyone agree with me on this?
Tax evaders are heroes.
Taxes are theft, and thus evading them is an act of heroism.
Money spent by government is NOT charity.
No of course it isn't charity, it's good hard cash creating jobs be they police or road builders or even just government workers.
It also provides lots of work in private enterprises.
Hey!! I know how we can create jobs!!!
Hear me out, just go with it...
Ok, so... first, I'll buy a gun... ok? got it? still with me?
Ok, then you guys all give me your money, or else I shoot you or put you in jail! ... still got it? We all good?
Ok, then I'll take the money and give it to some people to protect me from you guys when you try to murder me for taking your money!!!! Got that? still with me? sound good?
I SWEAR I won't use this power for personal gain!! I PROMISE!!
... sound good?
Evan, you're getting confused.
That's big business you're talking about there.
I don't think i've ever had a threat of jail time imposed on me by a company.
No, I think you're confused.
At least the government feeds you. Big business cuts you off you'll sometimes think prison would be better.
No home, no car, no food, beyond what you find, no gas, no electricity.
The confusion is back in your court Evan.
THE GOVERNMENT DOESN'T FEED ME!!!
In fact, every attempt by the government to feed their people has led to starvation. Ask the Soviets and the Chinese. (And while your at it, ask them why their government used starvation as a political tool!)
I don't go to the "Federal Food Distribution Center" to get food, I go to Giant Eagle, Kroger, and Meijers (chains in the US). And when I'm there, I don't look for "Government Produced Food Product", I buy stuff from thousands upon thousands of independently owned companies competing with one another to a share of my food budget each week.
John, you know better than to say such incorrect remarks. I'll forgive you on this one. Just don't let it happen again.
What, you mean prisoners aren't fed?
Or are you drawing attention to the fact that the prisons are actually private businesses?
... so when you said:
"At least the government feeds you."
... you meant "after I refuse to let them steal my money, and they arrest me and take away all my freedom at the point of a gun and throw me in a jail".
Yeah, the US government will feed me after stripping me of all my freedom...
... so long as I'm not considered an enemy of the state...
Anyway, thanks for clearing up that "people usually get fed while in prison". That really takes the edge off of "having all your rights stripped of you".
That isn't a very good analogy. How is it gonna be fair to the people who pay their full amount?
taxes aren't fair to anyone, that's the point.
Why the hell does everyone around me get to vote on how to spend my money?
The only fair tax is 0%.
Big business aside, consider that the jails are not big enough...lololol
like we all have not fumbled the numbers at times?
probly 80% of the population I'd say. Not just business, and advisory CPA's
There was a day when we had debtors prison in this world. And it was not a good thing.
Income tax is wrong, put all tax on purchase/consumption and everyone pays, the rich can pay less by using less or buying basic (low cost/taxed) items and the poor man can buy luxury if he can afford it.
Tax was introduced to pay for war initially, once the King realised that it was costing him personally to hold onto power.
Currently you are a slave to a corrupt government regime controlled by the richest elite families of the world, 300 of them to be precise, and you have bought into the lie that keeps them in power, control of the money supply and taxation.
You pay over 80% of your income in taxation, direct and indirect, and you pay it to keep the rich elite as your masters over you.
Watch these videos, then think again!
aguasilver very interesting video so is this:
building permit tax
CDL license tax
corporate income tax
dog license tax
federal income tax
federal unemployment tax
fishing license tax
food license tax
gross receipts tax
hunting license tax
irs interest and penalties tax on tax
marriage license tax
personal property tax
real estate tax
service charge tax
social security tax
road usage tax
recreational vehicle tax
state income tax
state unemployment tax
universal service fee tax
federal state and local surcharge tax
minimum usage surcharge tax
re-curring and non-recurring charges tax
state and local tax
vehicle license registration tax
vehicle sales tax
watercraft reg. tax
well permit tax
workers comp tax
++ NOT ONE OF THESE TAXES EXISTED 100 YEARS AGO AND OUR NATION WAS THE MOST PROSPEROUS IN THE WORLD.
WE HAD ABSOLUTELY NO NATIONAL DEBT, HAD THE LARGEST MIDDLE CLASS IN THE WORLD AND MOMS STAYED HOME TO RAISE THE KIDS!!!
WHAT THE HELL HAPPENED??? ANSWER: POLITICIANS
THE RICH DON'T GET RICH BY MAKING MONEY--THEY GET RICH BY NOT PAYING TAXES!!!!
by Josak4 years ago
One of the greatest criticisms leveled at socialist and perceived socialist nations is their high taxes, usually reinforced with the example of France and it's high tax rates under a newly elected socialist...
by Brian7 years ago
I was talking with a group of friends the other day. and I suggested that there should be a national tax, where the money collected should be distributed evenly among every U.S. citizen, and I was labled as a...
by Tony Lawrence6 years ago
Is nobody going to call Peter Schiff on his "I pay 50% tax" crap?Recently, Peter Schiff marched into OWS and confronted demonstrators, claiming that he pays 50% of his income to taxes. Unfortunately, the...
by Mikel G Roberts6 years ago
I'm not sure how we got here but I'm starting to see that the U.S. Government seems to think they are the "house" like the gambling institutions of Las Vegas. They seem to believe they have a right to take a...
by Stacie L6 years ago
WASHINGTON (AP) — President Barack Obama is expected to seek a new base tax rate for the wealthy to ensure that millionaires pay at least at the same percentage as middle income taxpayers.A White House official said...
by kerryg7 years ago
Republicans have repeated the lie that tax cuts are always good for the economy so often that all of Washington seems absolutely convinced that it's true. The conventional wisdom is so established on this that all a...
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.