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SOVEREIGN MAN

Tell me again… which of these nations is communist?

Communism in America?

Reporting from: Santiago, Chile

Tax policy really tells you a lot about a government… what politicians’ values and priorities are. People can SAY anything, but in a way, tax policy is putting their money where their mouths are.

For example, politicians like to talk about technology, efficiency and transparency. But just take a look at the tax code to see where they really stand. Estonia’s Taxation Act of 2002, which form the preponderance of that country’s tax code, is 43,370 words.

In Canada, the tax code is close to 1 million words. And in the US, the tax code is so daunting that simply the INSTRUCTIONS for form 1040 shatter the record books at 178,096 words… over four times the entirety of Estonia’s tax code.

US tax code is so massive, in fact, that the Government Printing Office charges $1,028 just to print a copy of it!

And for most taxpayers, it’s still virtually impossible to file online. It’s 2012 already, yet taxpayers in most ‘advanced’ western nations still have to carry around reams of paper as if we’re still using the telegraph.

Then there are the rates themselves. In places like France, Belgium, and Germany where the government confiscates the majority of what people earn, the message those governments are sending is quite clear: citizens are nothing more than dairy cows for the government to milk.

As I wrote yesterday, tax rates across the board in the United States are set to increase dramatically in 2013. For example, if you happen to kick the bucket on or before December 31st, the government will charge a 35% tax on the value of your estate that exceeds $5 million.

If you happen to kick the bucket on January 1st, however, the tax goes up to 55%, and the exemption goes down to $1 million.

Moreover, this exemption is not indexed to inflation. Which means that the more Ben Bernanke prints, and the more asset prices become inflated, the more people will fall into this category.

Again, the message they’re sending is quite clear– citizens, even in death, are dairy cows for the government to milk.

Perhaps most shocking is increase in dividend tax rates, set to rise from 15% to as high as 43.4%. Individuals who start productive businesses are being heavily penalized. Individuals who save their money and put it to work investing in other people’s businesses are being heavily penalized. This says a lot about government values.

Ironically, the new government of the People’s Republic of China has decided the REDUCE their tax on dividends. Years ago it was 20%, then dropped to 10% in 2005. Effective January 1st, though, the dividend tax rate in China will drop to a mere 5%.

Tell me again… which of these nations is Communist?

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About the author: Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

Comments on this entry are closed.

  • InnerCynic

    This must be the NEW definition of “freedom” in America: Stand and deliver!

  • http://www.facebook.com/scarlet.song.1 Scarlet Song

    When’s the next flight to china

  • Zumba900

    Save a fortune by not trying to run the whole world.
    If you want to insist on having your military doing the bidding of the 1%, remember, they didn’t get rich by spending their own money!
    Wake up people!

  • GoneApe

    Oguano just wants the money. He has the goons to back it up. So just pay and shut up.

  • Luxomni

    Remember the days when the government employees worked for us rather than we for them? Some of us are old enough to remember.

  • Eric Redman

    We pay our taxes & the government’s elected officials get rich from “Insider Trading, bribes in the form of campaign contributions, & they all take so-called fact finding vacations to resorts world-wide. Yet, when we need them to do something like, protect us from Nuclear fallout from “6″ GE Mark I exploded, caught fire, leaking, & sinking reactors ready to explode and kill us all with the Nuke yield of 20,000 Hiroshima bombs, upwind from California, the bribes from GE, Westinghouse, Hitachi & the rest of the Nuke Pac lobby come first. Check out the deep shit we are in at: radiationhealthnews dot com & its links to BBC News, ABC News Australia & all the news the Obama administration blocks from view.

  • Chris Marks

    The title of this article is silly. Communist countries don’t tax…they get their $ first and give the rest to the masses.

    For example, Cuba is opening up some industries, thus they will implement an income tax system in 2013.

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November 19, 2012 Santiago, Chile In 1936, the US government began circulating a series of pamphlets to explain its brand...

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