Are Income Tax Havens a Good Thing
The real negative effects of tax havens are not that paying taxes in the US are avoided. The real issue is that US policy is driving US $$$ away from the US. When money is put in a tax haven to avoid taxes, that money stays offshore. It no longer creates jobs or industry in the US. Instead it creates jobs in other parts of the world.
After a tax haven receives the money, it then searches the world for a place to invest, except that place will not be the USA.
The question is, should the US radically change the way it taxes its citizens to avoid so many high income earners taking their money away from the US?
There is a potential of an even worse effect. Since no one knows where this money goes, and no one knows what it is used for, it could be used for any purpose, including affecting US policy, or activities that would be frowned upon, or arrangements with legal or illegal activities, or given to charity in a most generous manner. No one knows.
How Much Wealth is the Right Amount of Wealth
Now I know that in the American belief system, a measurement of wealth is inappropriate. I agree. Yet I also know that a person can only buy so many cars; a person can only buy so many houses; a person can only buy so much food – no matter how fancy or expensive; and a person, no matter how hard he tries, can only spend so much.
So why use a tax haven? Why deprive the greatest country in the world of a bit of what it has given you? If a person has enough, is it his duty to not deprive others to make a bit more by not paying income tax, and by reducing money that would otherwise be available in the USA.
What Happens to the Money When a Tax Haven is Used
People think that the user is avoiding income tax. That is true, but the far larger harm, is that US dollars are permanently taken out of America. These dollars are now being invested around the world, everywhere except in America.
A Belief System
I believe in democracy.
I believe in restricted government interaction. Although government is necessary, it is also wasteful and destructive to the economy in many instances.
I believe in letting every individual strive to accomplish his/her goal and accomplishments.
I believe that social assistance is absolutely necessary and that government should protect the poor and disadvantage. I also believe that this assistance should be in total for any person, far less than that person could earn as an employed worker.
I believe in every freedom of the individual, save when that freedom hurts another citizen.
I believe that health care is a basic human right and is not a political football and is not a way to make money. Making money off of the suffering of others is immoral.
I believe that wealth has responsibilities to the place that gave the opportunity to gain that wealth.
An Alternative Tax System Perhaps
If the American tax system encourages American citizens to avoid keeping their money in America, maybe that is a wake up call to change the income tax system in a radical enough way to stop giving incentives to the rich to take their money out of America.
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