Tuesday, June 3, 2014


There are only three kinds of taxes regardless of the guises politicians pitch the gullible to disguise the tax. There are taxes on wealth, there are taxes on capital and there are permission taxes.

With the rise of Born-Again Socialism revivalist preacher Thomas Piketty, there have been howls for taxes to get levied.

In ELITES SEEK TO PUNISH WORKERS WITH A CONSUMPTION TAX, OR A TAX ON WORKERS' WEALTH, I reveal the sneaky effort of some who seek to claim a consumption tax is not a tax on wealth.

Behind every tax scheme of every politician is a this: You don't have right to your property gained by profit in trade and they lack the duty to keep their hands from your property. 

Said another way: You have the duty to surrender all of your property to the amount that politicians say you do.

Wealth Taxes

Wealth is the name given to property put to purchase and sale for cash and credit. Any tax levied on property in a purchase and sale is a wealth tax.

Wealth taxes go by these names — income tax, capital gains tax, payroll tax, gift tax, estate tax, excise tax, as well as the family of ad valorem taxes such as sales tax, goods and sales tax, land tax, declared worth tax, car registration tax, legal filings tax.

Businesses get taxed on net sales, which are sales less expenses. Unfairly, workers get taxed on gross sales. Workers don't get to deduct their expenses incurred to produce their sales, which is defined as work.

So-called negative income taxes aren't taxes at all. Such is welfare. It's not full freight welfare. It's subsidy welfare, or that which subsidizes the inefficiency of workers who qualify to receive it based on an arbitrary benchmark of income.

A Capital Gains tax is a tax on income derived from the sale of an asset, most often ownership in a firm, which gets called stock or equity, or ownership in a debt owed by a firm, which gets called bond. As a capital gains tax is an income tax, it is a wealth tax.

Payroll taxes to fund social security are wealth taxes as such taxes get levied on income. As always, all taxes on income are taxes on wealth since such taxes get levied on sales in purchases and sales of wealth for wealth.

Payroll taxes that force workers to purchase unemployment insurance all the same are wealth taxes, regardless of the intent. As always, income taxes are wealth taxes. Payroll taxes are wealth taxes.

Excise taxes are taxes levied on the quantity of property being traded. Typical excise taxes are fuel taxes of gasoline and diesel, alcohol taxes on the quantity sold, tobacco taxes on the quantity sold.

Sales taxes as well as GST (goods and services tax) are known as ad valorem taxes since taxes get levied on the sum paid in a purchase and sale. Sales and GST taxes are taxes on wealth. 

Any tax on either unimproved land or improved land also is a tax on wealth whether as a one-time levy or as a recurring levy and also get consider as ad valorem taxes since the tax gets levied on a claimed fictitious resale price. 

Other sneaky ad valorem taxes include taxes on so-called declared worth of things such as car registration fees, taxes on property in chattel sent through mail, tariffs on imports or exports, taxes on cash or bank credits transferred to foreign bankers, taxes on legal document filings related to purchases and sales such as realty deed transfer filings.

Gift taxes and inheritance taxes (also said estate taxes) are among the most pernicious kinds of taxes as such are direct swipes of property by politicians.

When someone gives a gift to another, the gift giver relinquishes property in what is given without pay. As it is a gift, a trade fails to arise as all trades consist of property for property, specifically, wealth for wealth.

Capital Taxes

Capital is the name given to property put to produce work or stock. Any tax levied on property used to produce work or stock is a capital tax.

A tax on capital would be a fee paid to license a dump truck that hauls gravel to pave roads since the dump truck is the capital. If the tax levied levied on the weight of the truck, it is an excise tax. If the tax gets levied on the estimated sales price of the vehicle, it is an ad valorem tax.

A tax on capital would be a fee paid to pollute the air during the blasting of pig iron with pure oxygen while producing steel since the blast furnace is the capital. A tax paid on the tons of pollutants would be an excise tax. A tax paid on the pig iron before its conversion into steel would be an ad valorem tax.

A tax on capital would be a fee paid for a building permit since the labor put to building is capital. 

Permission Taxes

Permission taxes are taxes against the property in oneself. These are the strangest kinds of taxes. 

One kind of permission tax is a marriage license, which is a levy for a legal filing. Another kind of permission tax is a driver's license for personal use.

Permission taxes levied as licenses to do work are capital taxes. So a permission tax for a driver's license for commercial use is a capital tax. A fee paid to have a restaurant inspected before opening is a capital tax. A fee paid for any kind of license authorizing work is a capital tax.

VAT — Value Added Taxes

A VAT (value-added tax) is a wealth tax, though wrongly, many believe such taxes are capital taxes. The key to understand the difference between a wealth tax and a capital tax is this: 

A wealth tax gets levied on what you are trying either to own to rid yourself thereof. A capital tax gets levied on what you own already.

For the seller of product, if the seller bears the burden, a VAT is a wealth tax. A VAT tax can work like a capital tax if the buyer of bears the tax and uses what is acquired in a purchase and sale as capital in production because such a tax inhibits using capital.

Often, a VAT gets levied as an ad valorem tax.

Here are the Beatles in a cartoon!

Here are the Beatles performing their song Taxman.

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