the system is backwards

[jaberwock]

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.

You are wrong in 2 parts. The "legal" documents show that if you do make more, then you pay more taxes, that part is true. However, you are forgetting two things that makes it near impossible for them to pay taxes.

First of all the rich own companies, their money isn't cash that come into their accounts like us poor folk, when I have a salary, my tax is automatically cut from it, but when you end up with a rich persons company make money, they can show costs and legally make it a break even company and not pay taxes, even if they do not have that much costs, they can just write "RnD company in Malta got paid 100 million dollars from us" and that's just their company (Nike does exactly this).

Secondly, when the rich wants to take some money out of their company, because they want to buy a 13th mansion or something, they just take a loan from the bank, and then they pay the banks loan with their company profits. That way, they made zero dollars, because bank paid for it, and they just paid their debt to bank. So they end up with no profit, and no tax.

[Mate2237]

How can you expect a poor man and a rich man to have thesame treatment in a country. This is not possible because the rich contribute allot to the economic developments a country this is the reason why most countries have preferential treatment to the rich.


But just to put the records straight the rich still pays taxes the countries that you mentioned have special tax policies which is targeted at attracting the rich to come over to their countries. This is because these countries wants the rich to come and invest in into their economy.

[GeorgeJohn]

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?

I haven't experienced that a wealthy is exempted from paying  tax, I think that people that is exempted is people that is involved in the governing Council of the country such as politicians and the negatives of the Parliament,

Any wealthy somebody that owns a company will pay tax because tax is one of the things that generate revenue to the country, so even though you are a politician in well organized country and you owns a company or any industry you must to give or pay a tax to the government, except its a corrupt nation that's sentimental.

[M47AK16]

First of all the rich own companies, their money isn't cash that come into their accounts like us poor folk, when I have a salary, my tax is automatically cut from it, but when you end up with a rich persons company make money, they can show costs and legally make it a break even company and not pay taxes, even if they do not have that much costs, they can just write "RnD company in Malta got paid 100 million dollars from us" and that's just their company (Nike does exactly this).

Secondly, when the rich wants to take some money out of their company, because they want to buy a 13th mansion or something, they just take a loan from the bank, and then they pay the banks loan with their company profits. That way, they made zero dollars, because bank paid for it, and they just paid their debt to bank. So they end up with no profit, and no tax.

Yeah, this is how corporates and then rich people hide their revenue to pay lesser taxes. Even it is not illegal as per law, they are enforcing individuals or salaried to pay more taxes. So, not a legal thing in my opinion or at least not morally a right thing. If corporates pay taxes as per their original revenue then I guess there would be lesser burden on individuals.

Talking loans for expanding business is common but using the same to escape from taxes sounds newer to me. I read Warren Buffet pledges his won company's shares to his day to day life but not by selling his shares. So, he never needs to pay taxes for his income. All income are in shares and using same shares to avoid taxes as well.

[Curious T]

First of all the rich own companies, their money isn't cash that come into their accounts like us poor folk, when I have a salary, my tax is automatically cut from it, but when you end up with a rich persons company make money, they can show costs and legally make it a break even company and not pay taxes, even if they do not have that much costs, they can just write "RnD company in Malta got paid 100 million dollars from us" and that's just their company (Nike does exactly this).

What you said are just ways corporations and wealthy people use to avoid taxes, this doesn't mean they don't pay taxes or they pay less than the poor. They still pay taxes, they only look for ways to not pay more than that. The company pays different forms of taxes. They can't just magically declare numbers that are not true or say they made less profit just to avoid paying tax. It is audited and when they're caught they pay dearly for it. There is a difference between tax evasion and tax avoidance. Tax evasion is illegal.

Secondly, when the rich wants to take some money out of their company, because they want to buy a 13th mansion or something, they just take a loan from the bank, and then they pay the banks loan with their company profits. That way, they made zero dollars, because bank paid for it, and they just paid their debt to bank. So they end up with no profit, and no tax.

Where did you get this information? The way they escape paying tax here is on their income. The money is recorded as borrowed money, so its not taxable, but to if they build a "13th mansion" with the loan, they have to pay property tax for that building. The idea that the rich don't pay tax is flawed. They pay taxes

The government give tax brakes to some companies for various reasons like attracting investments and creating jobs, but this has been heavily criticized. Thee are also tax credits. This is somethin Amazon has used very well to reduce the tax they pay. Its basically just when the government reduces how much tax you're going to pay because you did something significant for the community with your money. 

[STT]

If the house you own is paying taxes, most people would argue they are paying taxes not the house.  Same is true of owning companies who pay taxes, you are being taxed no doubt.

What is easy to say is the giant amount of tax on everything is everywhere, what is worse of all is the destruction of currency which punishes the poorest people of all because they cant even earn money and not lose it overnight they cant save properly or anything much without it being gifted back to government.

[Antotena]

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?

There is difference between avoiding tax and evading tax, avoiding tax is a way people reduce their tax, it's not like they don't pay the tax, they do but instead of going through the simple route, go through other ways that can cut down their tax to the bearest minimum. Tax evasion on the other hand is a big crime, if you don't pay your tax, you will be sued and you can get jail for evading tax completely, even your business can get shutdown when you evade tax.

You know one thing been a wealthy person, you are at advantage with many things. For example, the governments doesn't tax borrow money, if you have an asset you can use it as collateral and take a loan, use the borrow money for whatever you want to do, you will not be paying tax for the capital but the profit generated, you can pay back the capital and still hold your asset until when you are ready to sell your asset, this is one of the advantages of been a wealthy person, using money to look for more money.

[Synchronice]

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?

What's the point of being wealthy? To be able to afford and to be able to do things that others can't do. Being wealthy means being powerful because we live in a society where money means everything and people will do anything to get that money, so, wealth controls everything. Since this is the case, it automatically means that power is in their hands and logically, they do whatever they want. That's why rich people don't pay taxes, they own the money and control the society, they have the power in their hands and when you have the power, you decide the fate.

[justdimin]

What's the point of being wealthy? To be able to afford and to be able to do things that others can't do. Being wealthy means being powerful because we live in a society where money means everything and people will do anything to get that money, so, wealth controls everything. Since this is the case, it automatically means that power is in their hands and logically, they do whatever they want. That's why rich people don't pay taxes, they own the money and control the society, they have the power in their hands and when you have the power, you decide the fate.

There is a limit to that though. Like if you spend 50 million on a great mansion, and then you spend 10-15 million on some cars, and you buy some great company for 100 million that makes you money, and put aside some money at some simple vanguard or bonds or gold type of shit that gives you small returns, at that point, you are done? Like what else can you really want?

You have let's say a billion dollars networth, spent 200-300 million on shit, and then rest is making you money, that's literally enough to live the way you want to live however you want. Private jet rides for a dinner in Paris? You can afford it, or you want to buy a summer house? Can afford it. All in all, there is nothing that can stop you at all. After that, after that billion dollars, rest is just for power tripping, nothing more.

[Fortify]

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?

This is the fault of governments and competitions between governments to draw in as many rich people as possible, by offering certain perks. It's how places like Monaco and Dubai were able to attract millionaires/billionaires - no income tax, no sales tax, etc. but it's detrimental for the most developed and civilized societies where many of these people make the most profit. It's a very difficult problem to solve, but places like the EU and North America can put pressure on smaller nations that act as tax havens or allow citizenship to be easily bought for tax avoidance purposes. Frankly some of them should be banned or face heavy restrictions upon re-entry, because they would soon get bored of the fakeness of places like the UAE if they were stuck living there forever.

[slapper]

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.

Capital is a non-perishable commodity, labor is location-specific. Companies are registered in Delaware or Ireland, billionaires have five different passports, and in the meantime, the person with $35k on his hands is subject to review because the algorithm identified his bank account activity

However, accusing the system is not who made it like this. The carried interest loophole, the 1986 tax reform, and the step-up basis of inherited wealth. People who passed your free market test and then instantly went out of their way to rig the next round, lobbied those into existence. Good-faith market participation and successful business are not equal and assuming that we are doing it is how we got in this situation

The nostalgia about your pre-income-tax years does not acknowledge that robber barons literally owned towns during the period in question. Corporate script, Pinkertons busting unions, child labour in the coals wanted that's what unmoderated capitalism looks like