I have always wondered about the logic of taxation. Of course the government machinery needs to run and everyone needs to chip in. The one with more money in his pocket has to put in more. One great reason for the one with more money to put in more into the exchequer is that he has more. But the question is why he should put in more. Again you will be told that you were able to lay hands on that kind of money because "government" made possible a society that obeys certain laws. It kept the criminals in check. It helped move away from 'might is right' law of the jungle, and made the physically weak intellectual create money and hold it with him/her without having to lose it to the the physically or numerically strong. Thus a part of your tax goes into this infraest of structures.
Next, there are the ones who make a pile in service and those who get it doing business - multiplying money by putting into some product or service that has a market and using the 'services' of those who are available at a price. The market logic dictates how much money gets into the service provider's pocket(here I mean the individuals who sell their labor(intellectual or otherwise). I agree that the Laws of Economics and the Market are inexorable. The businessman definitely gets to multiply his investment multifold, assuming he isn't a failure, the ratio of his income to the taxes he pays, how does it compare with that of a person who has only a service to offer i.e.his income-to-taxes ratio?
The man in business has several legal avenues to divert his precious money from getting into the exchequer. The man in service does have some of these too, only he doesn't have money left with him enough to get these going, I mean after meeting all his living expenses... I take the man in service to mean one who only has a service to sell but hasn't invested in stock or who is not in some odd or roundabout a way a businessman in some respects too!
Now, if Government were God should it not be concerned with maintaining the Income to Taxes ratio of the Businessman and the Serviceman on an equitable footing and in fact if Government is there to help the 'weak' survive long enough to be strong should it not be loaded in favor of the serviceman?
The question is: Does it really happen? Do governments really maintain these ratios?
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You can whine all you want, but it most probably wont change things. It happens everywhere.
As a person employed (sort of) directly by the government, you are given a lot of benefits which a good majority of profit-Oriented(P-O) Companies don't enjoy.
A person heading a P-O company will have to always be aware, be prepared, keep himself sharp to acquire wealth. He gets very little or no 'benefits' as such. Saving his money is the only way he can be secure. He has to keep tight taps over all his leeks, Taxation by the Authorities being the biggest. In most cases, a person is required to pay at least 5% to 40% of his annual income to the government. Which is VERY large to a person who survives by his own merit. He does not have a life nor job nor money security. He will try all methods, Idea, Clauses(in the rule book), doors, passageways, tricks... Almost anything to avoid this "Major" leek of his income. The government can keep trying to get the money out of such people, but these people will be a step ahead in protecting it. That's how it works. If he is not this tricky, his 'Financial' End is certain. He will be doomed within a few months, even if he is at his peak. The government cant be dictatorial over such people, as it would cause large scale revolts. They can try their best, but like I said. Its about these P-O people's survival. They are forced to resort to any method, as its an 'survival' issue.
On the contrary, people working for the government, have all their income,etc. clearly registered in their log books. You cant avoid tax, as to avoid tax your 'company' should help you out(By providing the law-knower s), they should advice you on how to jump or avoid certain/all types of taxes, or at least reduce them. BUT, in your case 'your company' is directly(or indirectly... I don't know which), is controlled by the government. They will almost NEVER help you to avoid any kind of tax as it will Reduce THEIR income. They cannot suffer income loss by both Types of earning groups. They'll not be able to feed and sustain themselves. Money is needed to sustain even the government itself. Its NOT like they can print as much money as they want cos they control the printing too. They just cant do it because it will wreck the economy and such blah blah. You cannot argue that "the govt. is supposed to support/protect the people and help them earn money, etc..." If the govt. goes into that much of welfare, the govt. itself will die of poverty(lol!) You cannot expect any welfare aids from a poor person. To help(As much as its doing now atlest) it just HAS to have sort of a 'steady' income of its own.
I guess you can say, The government is feeding on 'its' employees for its survival. Its feasting on 'its' employees' money to provide welfare to all others(who aren't in the company... sort of like the Russian economy? the socialist one I mean).
But, that's how the ball bounces. You cant help it if it ball bounces on you. It HAS to fall somewhere to jump back up. Apparently, It bounces on the easiest turf. Don' worry, its the same in almost all countries.
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