What to avoid taxes? Legally? I know a way, because I haven't paid income tax for years, and I pay very little in consumption taxes either.
Now that the Panama Papers have been revealed to the world, we are again reminded how the rich scam the system for their own selfish benefits. Our lame leaders tell us we have to accept austerity because "there isn't enough money", while billions, if not trillions, of dollars are being hidden from the taxman by pathological cash collectors.
I have something in common with those wealthy tax avoiders - I pay little very little in taxes. But I do it legally and ethically. In Canada, individuals with low income pay little to no income tax. I imagine that this is similar in most developed nations.
Not that I have a problem with taxes. A democracy will thrive when everyone pays their fair share. But I don't mind not funding war. Or corporate welfare. Or paying the way for rich people shirking their civic and moral duty.
According to a Tax Justice Network report from 2011, Canada loses an estimated $80 billion per year to all forms of tax evasion.
I don't need an offshore tax shelter ran by sleazy big time law and accounting firms to avoid taxes. I just have to be comfortable living with a low income, and curtail my consumption.
Trying to buy everything by hiding your money and avoiding paying taxes is a hassle, and in some cases illegal. Maintaining a low income and buying next to nothing to avoid taxes is easy. And within the law, as well as ethical. It is also good for the Earth.
In Oregon, we do not have a sales tax. But we have, what we think, are high income tax and property tax. My boyfriend and I always say that if Oregon would implement a sales tax and decrease the property tax, we'd come out way ahead because we don't buy much. And the added tax would be the incentive to buy less. Good for my retirement fund, and as you point out, very good for the Earth. -- Mary
ReplyDeleteI agree that consumption taxes are the way to go. The current system, though, does not want us to buy less, or have us increase our savings. Buy, buy, buy. Borrow, borrow, borrow. Having said that, the current system is on its way out. At least you get to live in one of the best states in the US for your tax dollars. Oregon change my life.
DeleteThe sales tax rate in the state I live in, South Carolina, is 6% to 8%. My city is at 7% and no tax on food or pharmaceuticals. There is a higher hotel and restaurant sales tax rate. Our property taxes are reasonable. I don't own, but property taxes are a part of the rate of rent I pay, true for all of us who rent where there is property tax charged to the landlord. Our state income taxes seem reasonable too.
ReplyDeleteOur city gets income from electricity. They are the only power company in the city. Interesting that they also own a controlling percentage of the company they buy the power from! Hence, they can keep the sales tax a bit lower.
I don't pay income tax because I have low income and it is disability. Recently, I learned that some states do tax disability income. It seems like robbery to tax a very low income that in some cases isn't enough to sustain a person and the person is unable to work.
I didn't mind paying taxes when I worked. I like having clean water, parks, roads for my small amount of driving, fire and police department available if I need them. I do mind how the money is spent when it is for war, politicians very high salaries and such.
That is awesome to have a public utility. We need more of them, and in the new world that is how things will operate... again.
DeleteDisabled people's most challenging disability is poverty. And there IS a cure for that.