It’s a fact. If you produce in society, you get punished.
1. Rules and Regulations
Let me take business as example because i feel most in touch with this world. You start a business. The first thing that the gov’t does is stick its hand out asking for fees and taxes. Example? California tax franchise board (i.e. IRS) asks you to pay $800 whether or not you make a dime in your business. If the your business does well and starts hiring employees, you get smacked in the face with payroll taxes, medicare taxes, social security taxes, liability insurance requirements, etc etc.
Yes I do concede that businesses are part of society and they need to pay their share of the social costs. But this is ridiculous.
Small businesses make up a BIG chunk of the US economy, meaning a big chunk of the US labor force is hired by small businesses. Why would you tax the golden goose that lays the egg? The more you tax the goose, the smaller the egg. Maybe even, kill it. Sure you might have a good feast for one nigh, but I guarantee you that goose is dead and not coming back.
First time I incorporated and tried to do things more “legit” was when I had a consulting business and a vending business. You can’t possibly imagine how much of your time is spent on doing stupid shit that makes you no money, like adhering to government’s rules and regulations. You can ask any entrepreneur why they started their business. Very simple, to CREATE WEALTH, not to pay taxes and fill out insanely dumb + repetitive forms.
Of course, you can outsource all of this to other companies or hire someone to do it. But that requires MONEY. If you’re starting a business, how much money can you devote to this mindless part of the business that produces no income?
2. Taxes
Producers of society are TAXED at every turn. Uncle Sam has his hand out on EVERYTHING we do. Making income? Taxed. Hiring employees? Taxed. Investing? Taxed. Borrowed money but can’t pay it back? YOu might even get TAXED on that b/c IRS interprets that as income in certain cases.
Taxes are important. Police and fire men, for example, are vital to society. If I am getting mugged or my house is on fire, I (like anyone else) would not doubt even for a second that my taxes are justified. Other public infrastructure that would be hard to manage under free market economy (like roads and civic structures) are good examples of GOOD use of our tax money. But of course, the gov’t has no incentive of being efficient. If you don’t spend your budget, you will not get more, next year. Thus the bludgeoning taxation.
Tax is getting out of hand. For example, when I started working a job out of college, I worked at a small startup software company getting paid $50k/yr. NOt a whole lot of money but when you’ve had no money for most of your life, it’s quite a bit. So how much did I really make?
- Federal + state income tax at 35% => $17k
- Medicare + social security tax at 7.5% (15% split b/w me and employer) = $3,750
- Sales tax on anything I buy @ 8% => $4k
That’s almost HALF of what I earned on taxes. In another words, I work for the IRS from Jan to June before anything comes to my pocket. (Yes, assumption on the sales tax was that I’d spend everything. Of course! I was 22. I did spend everything. Especially when paying for other family member’s health care costs).
People who are for “social re-distribution of wealth” (i.e. thru taxation) are retards. What they don’t understand is, taxation hurts middle class more than anyone else. Just look at the numbers above.
Taxes are even worse for entrepreneurs. There’s even MORE tax that you have to take into consideration before you add a dime to your pocket. Licenses, permits, registrations, legal structures, accounting, etc etc.
Politicians are always talking about making the economy stronger. Please. Nothing but lip service. Want to help the economy? How about getting rid of all these stupid regulations and taxes that not only burden small businesses, but even prevent new ones from forming.
How about not taxing businesses that have less than $250k in net revenue. That’ll help quite a bit.
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