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What’s wrong with income tax

The common income tax works that way: if two people have 100 currency bill, each and they trade between each other. One is selling haircut to the first one, and the first one is giving dancing lessons to the other one. Each of them has to pay circa 20% income tax on each of the pieces of work done every time the salary arrives. This means that after the first transaction they’re both left with just 80 out of 100 money they had, and then they can go on trading more… As you already see, after just a couple of trades they make between themselves, none of them has any money at all and the government keeps it all.

Every government is therefore interested in keeping us trading between ourselves as much intensively as possible. The harder we work, the more transactions we make, the quickest the government takes over all the money in the system through the malicious nature of the income tax system (not even counting taxes collected on tax other than the income tax). One can start a second job, ask for a raise to earn more, but that’s only good for a short while before he or she lands on a higher tax band, or one can reduce holiday time, get rid of a car / house, postpone having children – but that’s all also only good for while as we eventually have more things to care of as we get older.

Of course, normal intelligent people get smart quickly as they see following the rules is path to nowhere: do everything they can to leave some of the money they earn for themselves: they cheat on taxes, register businesses to claim business expenses, create various charities and claim operational costs on charitable work, work work out the caveats of the tax deductions, etc. The other ordinary people who just want a quiet, easy live are just locked in a vicious circle of doing more work and paying more taxes until they realise that they’re just old and out of pocket.