Sunday 17 April 2011

Why do we hate getting money? (2)

I have a job. And the government fines me for working - they call it tax. They also fine my company for the crime of employing me, and if I make anything to sell, there's an automatic fine of 20 percent, to discourage us from doing it again. They have another way of preventing us earning money: the smartest people in the company are kept busy filling out horribly complex and pointless tax forms.

It has the desired effect: all these fines add up to around 40 percent of any money earned. Which means if you have a $100 job to do you can't do it unless it makes an instant profit of $67 (because 167 - 40% = 100). Obviously most work does make such a huge instant profit, so most work cannot be done.

For centuries economists have been telling them to tax other things instead of work (like taxing land for example, to stop people using more than they need), as this would let the extra low profit work be done, making more money for everyone. But the government hates the idea of making money. I don't know why, but I think it's because they are stark raving mad.

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