Monday 1 April 2013

Death and Taxes

death and taxes, should you avoid either?

There is the old saying that no one can avoid "Death and Taxes". In the last decade/s that statement seems to have been half wrong. The death part still goes but to avoid taxes has become far to easy.
Part of the problem is that the companies are active world wide and the tax rules and regulations are highly regional with too many exception rules leading to that too many corporations are easily able to avoid paying taxes.

Honestly I do not see the problem either with paying taxes as well as how to change it.

In the country were you have an income you also pay tax on that income no matter if it is you as a private person or you in the terms of a company.

Nothing more need to be either said or done. It is very easy. I do not care if you are Google with your headquarter in Ireland because they have low corporate taxes there. If you as a company are making 50 million euro in Italy then you pay whatever %-age taxes on that income in Italy back to the Italian population that gave you that money. If that is a too big problem for you as a company then don´t expand into other regions.

Many people, just look at the south of Europe, are doing as much as possible to try to avoid paying taxes. Why? To me this has nothing to do with solidarity or communism or what ever you want to call it. It is purely out of selfish reasons that I find it good to pay taxes. I want a working social security system, I want free health care, I want to drive on good roads and have an excellent infrastructure in the entire Europe. As a businessman I want that the population is getting richer so that everyone can afford to buy my products. Maybe they can not afford it today but with a helping hand they will be able to buy it in 10 to 15 years.

Too many seems to forget that the better it goes for other people the better it will also go for you. The higher the education people have, the more money they will make and the better their lives will become. With a working health care system you will have a healthier population that can work and produce for the nation without having an increasing crime rate and social unrest.

It is crucial for a democracy to have an overall content population that are paying taxes so it is better that you then try to avoid death but that will most likely turn out to be a bigger challenge.

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