the system is backwards

[Curious T]

It is not true that wealthy people don't pay taxes. They pay more taxes than the poor. Most countries use the Progressive system of taxation. This means the more you earn, the higher the percentage of tax you pay on your income. There is also the regressive tax system, where everybody pays a flat rate no matter what they earn.

Some countries use both types of taxes on different taxes, but in most countries, income tax is usually a progressive system.
In the regressive tax system, people don't pay the same actual amount, but they pay the same percentage. The difference is, it weighs more on a person earning $500 a month to pay 10%, than it does for a person earning a million.

[BitHodlers]

I don't think that's true, but if it's true then it could be some few rich guys that can do that, because majority of rich guys even pay higher tax according to their level of investment in such country. although there could be some rich loan evaders who has not been noticed by the government or tax agencies but I believe this rich folks could be among the currupt Rich people who pay their way out. I believe in most currupt countries the rich always have their way of boycotting the law since they have money. But we can not use that to generalize All rich people to assume they are tax evaders.

By definition, tax is a mandatory contribution intended for the benefit of the state and its citizens. If it's mandatory, there are no exceptions, including for the wealthy or non-wealthy who meet the requirements for taxation.
I don't know the exact details of tax rates and implementation in every country, but basically, once the requirements are met, anyone, regardless of their social class, must pay taxes.

Wealthy individuals who don't pay taxes are considered illegal, although I don't deny that such groups exist in every country, and they usually try to avoid taxes through various means.

You are missing the point, read my previous post. What the law says is useless when there are many exceptions using certain structures. All of the tax loopholes were created by politicians for the rich people. This de facto makes it a tax exemption. They paid, they got what they needed and now they are using it. Instead of the whining about loopholes for decades, they would be closed otherwise. It is very easy to close most of the loopholes but they don't want to.

It is not true that wealthy people don't pay taxes. They pay more taxes than the poor. Most countries use the Progressive system of taxation. This means the more you earn, the higher the percentage of tax you pay on your income. There is also the regressive tax system, where everybody pays a flat rate no matter what they earn.

How naive can you be? Do you believe everything that the news tells you too? The rich pay more taxes, good one. 

[Samlucky O]

Snip

You are missing the point, read my previous post. What the law says is useless when there are many exceptions using certain structures. All of the tax loopholes were created by politicians for the rich people. This de facto makes it a tax exemption. They paid, they got what they needed and now they are using it. Instead of the whining about loopholes for decades, they would be closed otherwise. It is very easy to close most of the loopholes but they don't want to.

The last I checked I didn't quote you, telling me to read your post is what I don't get, except you are not telling me something. I wonder why another person will create thread while another person is taking it  up seriously than the op.

[BitHodlers]

Snip

You are missing the point, read my previous post. What the law says is useless when there are many exceptions using certain structures. All of the tax loopholes were created by politicians for the rich people. This de facto makes it a tax exemption. They paid, they got what they needed and now they are using it. Instead of the whining about loopholes for decades, they would be closed otherwise. It is very easy to close most of the loopholes but they don't want to.

The last I checked I didn't quote you, telling me to read your post is what I don't get, except you are not telling me something. I wonder why another person will create thread while another person is taking it  up seriously than the op.

Good way to dodge admitting you are wrong like most people who responded to this thread. OP did not respond to this thread again so anyone who responds is taking it up seriously.   The fact of the matter is that the rich have exempt themselves from taxes. There is no debate there. Some users even responded that the rich pay more taxes. Funny to see poor people defending the system and the rich, everything is working exactly as designed.

[alastantiger]

It is not true that wealthy people don't pay taxes. They pay more taxes than the poor. Most countries use the Progressive system of taxation. This means the more you earn, the higher the percentage of tax you pay on your income. There is also the regressive tax system, where everybody pays a flat rate no matter what they earn.

The wealthy have a way of avoiding taxes and it works for them that the poor don't know about. Some poor do know about them but they don't have the resources to make use of those ways because they don't have the money. The rich are cheating the poor and the government are helping because it benefits them too. The wealthy make use of charities to avoid taxes and they aren't doing it because they want to help the poor. I don't like the flat rate system and I don't think it should be practise more.

It's unfair and also favour the rich. Taxes should be calculated on percentage of your income so that someone earning lesser pay a lesser tax and the people receiving the larger share of the money in the economy should pay more taxes. That way, everything will be balanced and we won't be taking more form the poor when it should be the rich contributing more to help grow the economy.

[WillyAp]

Every poster who thinks he's able to predict the behavior of wealthy people is declaring his/her ignorance about the subject.
Hardly everyone is thinking a little further, I wonder why?

[meser#]

Poor is poor because he doesn't know how to steal. Some of the rich can avoid from paying a lot of taxes why because they know how to avoid but on the other hand poor can't because in some countries they pays before gets the payment. I'm not blaming rich people I'm blaming the system if everyone follows this path then everythink can be collapse. No common education, healt, safety system will work as must be.

[BitHodlers]

Every poster who thinks he's able to predict the behavior of wealthy people is declaring his/her ignorance about the subject.
Hardly everyone is thinking a little further, I wonder why?

What to expect from the lowest denominator of the poor? If they knew things, they wouldn't be poor. If all else fails they can always blame inheritance and demand communistic redistribution. 

Poor is poor because he doesn't know how to steal. Some of the rich can avoid from paying a lot of taxes why because they know how to avoid but on the other hand poor can't because in some countries they pays before gets the payment. I'm not blaming rich people I'm blaming the system if everyone follows this path then everythink can be collapse. No common education, healt, safety system will work as must be.

This has nothing to do with it. Theft is something that is defined by the law. The rich people are not stealing things, in the topic of taxes that would be tax fraud and usually it ends up wrong. The really rich do not need to commit tax fraud, those is usually done by the less powerful and smart. The really rich buy their exemptions and then legally pay less.

Actually now that you bring up theft, depending on the company type poor people are stealing a lot. They just aren't smart and never use their stolen money to improve their situation. I know for a fact that in the construction business the workers steal a lot.

[meser#]

Poor is poor because he doesn't know how to steal. Some of the rich can avoid from paying a lot of taxes why because they know how to avoid but on the other hand poor can't because in some countries they pays before gets the payment. I'm not blaming rich people I'm blaming the system if everyone follows this path then everythink can be collapse. No common education, healt, safety system will work as must be.

This has nothing to do with it. Theft is something that is defined by the law. The rich people are not stealing things, in the topic of taxes that would be tax fraud and usually it ends up wrong. The really rich do not need to commit tax fraud, those is usually done by the less powerful and smart. The really rich buy their exemptions and then legally pay less.

Actually now that you bring up theft, depending on the company type poor people are stealing a lot. They just aren't smart and never use their stolen money to improve their situation. I know for a fact that in the construction business the workers steal a lot.

If you cannot run exemptions in the tax administration correctly and fairly, the result will theft. That company and those rich people are actually stealing from the pockets of those poor people by using the backwards of the system until they discover. For instances in my country, many companies' taxes deleted by the goverment without proper explaining (which is supporter companies to current government). So they get the exemption from government but is this fair and square? Nope if you ask any Turkish people about this incident they will share the same thing. Neither you or me can't sure %100 in everywhere this tax administration is running fairly and correctly, right? Not all of the rich steal like that but there are many of them like that bro

Your view is right I'm not saying you are right poor people can steal also but not as much as the rich. Thats why poor stay poor (by this conversation)

[SUPERSAIAN]

Rich people know and employ many methods of tax evasion. They're not exempt from taxes; they simply find ways to lose track of their money. Rather than pay taxes, they use lower amounts to smuggle money out. The tax havens I've heard of before are exactly what this is all about. The reason the rich evade taxes is purely because they exercise power and, with that power, engage in corruption.

This is common practice in almost every country.

[goldkingcoiner]

is there a reason why the rich are the ones that can escape taxes?

Because the system is built by them for them. That is the easiest explaination. But if you wanted a more practical reason it is that they know how to play the system, mainly being born in a family who has been doing it for ages and educating their children to do the same. A normal citizen could use the same short-cuts if they knew about them but they are more worried about their monthly costs and salary. So it is a lack of motivation.

[slapper]

The rich avoid paying taxes due to hierarchy. They are the ones who are at the table of bargaining rules. The rules are passed down to you and me after the inkh dries. Individuals discuss fair share, yet fairness has never been a political slogan. The rich are not evading but rather avoiding, legally. It is morally compromising. Structurally, it is efficiency: wealth moves where it is not punished

States allow this since they are more afraid to lose investment than they are to squeeze their citizens. A billionaire who flees New York makes more headlines than ten thousand workers who are unable to pay rent. The stationary will always be overtaxed and the mobile undervalued by governments. And the rich are the most mobile of all

The psychological reality is that middle and lower classes are left to bear the burden of civic responsibility. This is roads and schools, this is health care, and all funded by the people who cannot run away. The lowest contributors are the ones who use the system the least (billionaires who live in gated compounds, fly with their own planes, send their children to high-priced private schools). The ones who rely on public goods contribute the most

[coupable]

is there a reason why the rich are the ones that can escape taxes?

From where did you get this fantastic idea that all rich people are tax evaders? In which country people can escape from paying taxes wether for their activity or for their wealth? In the countries you mentioned there are rich people from arround the world and the government moderate the economic space to benefit from those rich people by applying taxes. Taxes are almost one of the major funding ressources for the national budget that makes the country what it does actually is.

[STT]

The system is indeed upside down screwed up and down but you shouldn't buy the old line of blame rich people, especially if you come to conclusion to oppose those who run successful businesses.   If they already passed the test the free market can fail a company on, politics is not the arbiter of good and bad it makes itself out to be.
   Nobody in politics truly believes this rhetoric no matter what speeches they make, they need the tax and they need the revenue so their true opinion will be the opposite.

  Business can leave, people with enough money can choose to live wherever they like its only us the working poor who are often chained to the ground paying tax no matter what its wasted on.

The original system was better, no income tax because people shouldn't be forced to jump those hoops while just trying to survive.  You tax the companies always and the tax is within the price you pay for any product.  Then all government is left to do is protect the borders, not be chasing people in circles for the few pennies they earn an hour.
  That whole game is what will never make sense, its inefficient and its counter productive to discourage hard work.

[savetheFORUM]

Good way to dodge admitting you are wrong like most people who responded to this thread. OP did not respond to this thread again so anyone who responds is taking it up seriously.   The fact of the matter is that the rich have exempt themselves from taxes. There is no debate there. Some users even responded that the rich pay more taxes. Funny to see poor people defending the system and the rich, everything is working exactly as designed.

In which situation do they get tax exemptions? They might have exemptions maybe by a few percentage but that's because they already are paying that tax elsewhere. Like for eg, you might pay 5% tax on the restaurant bill and you might get rebate or exemption for that 5% in your annual filling. This does look like exemptions but somewhere they already have paid the required tax. Governments are not fool to exempt rich people and tax poor people as they too have to think about their economy.

There is no hiding from taxes. Those who find ways to ignore taxes are caught some or the other way. Maybe not now, but they would be noticed maybe after 5 or 7 years. They would not risking avoiding taxes and will always pay their taxes no matter what. Middle class will pay a minimum due and will get their taxes cleared. The number of tax defaults have reduced drastically over the years considering the strict actions taken.

[el kaka22]

There is a simple way to increase taxes a lot, and force these rich folks and companies to pay more taxes without making them leave your nation; exit tax. If you have a huge and successful company in a nation, and you put a giant exit tax, then it makes no sense to leave that nation. Imagine you make a billion dollars a year, and you pay nearly no tax because you claim to also spend that much, then the government says you are going to end up paying tax based on revenue now, not the cost, which is horrible for a business, who knows how much they are spending, right?

Well, you would want to either close shop, or go somewhere else. If you close shop, that is fine, government can't make you continue. But if you want to go somewhere else, they could ask for 10 years money in advance, and suddenly it is not lucrative to leave.

[WillyAp]

In which situation do they get tax exemptions?

You don't pay taxes on credits. There is a loophole if you will. It should give people payed wages an incentive to try. 

[aylabadia05]

<snip>

is there a reason why the rich are the ones that can escape taxes?

There's no reason for the wealthy to escape tax evasion if the system is implemented according to applicable regulations, unless they are simply avoiding paying taxes.
Taxpayers are legally required to pay taxes on their assets, regardless of the amount, because taxes ultimately return to the people in various forms, such as public facilities used by the public, and lower education and healthcare costs.

Taxes imposed by government institutions, as stipulated in regulations, will be implemented as intended. If someone escapes, it means something is not working as it should and should be investigated with suspicion of potential abuse of the system.

[wozzek23]

I would strongly oppose to what you say. Wealthy people are the ones paying taxes no matter what they do. If not, they do face consequences or either they have to live a normal life pretending they are poor. I don't think any wealthy personal will do this. Instead, they would prefer paying taxes and live a secure and stressfree life. They don't have to worry about taxes if their earning sources are genuine. No matter how strong your connections are or what your political position is in the society, you still have to pay taxes or bear the consequences.

Middle class or poor people already have a very limited earning sources and even the feds will not pressurise them to pay heavy taxes. The taxes they pay will be minimum or some might not even pay anything. They can escape but wealthy person can never escape from paying taxes.

[Rikimaruu]

why is it that the wealthy ones usually exempt from paying taxes? when you are rich, you can basically pay no taxes and it will not be considered illegal exactly. you will not be filed a case if you avoid paying taxes no matter how. sometimes you are even exempt like for example living in uae or in monaco, the wealthiest people do not need to be paying taxes. but why is that? aren't the wealthy ones supposed to be paying more? instead it is the ones from middle class or lower that are paying so much for taxes

is there a reason why the rich are the ones that can escape taxes?

Rich people actually pay taxes, the law and government make more money from these people than the poor, what do you mean they don't pay taxes? There are ways to avoid taxes if you are rich, maybe thats what you talking about? It comes with some caviat, I  remembered when Robert kiyosaki said he has a way of not paying taxes and, his point is actually on leveraging debt and structuring finances through corporations to legally reduce taxable income.

Not all rich men are this smart, not all rich men knows that using debt to access wealth without triggering taxable event is a big deal, I believe every real estate owners or builders should understand better, instead of selling an appreciated asset in the real estate business which will incur capital gains taxes, they can take out a loan against the assets value.

If you don't know now you should now, that borrowing money is not considered as an income, it will not be taxed.