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By definition, taxes are noncontractual debts in which the state is the creditor, and the payment of these debts is demanded through coercion and violence.

Taxes are not a contractual obligation between the state and the individuals it governs.

By definition, taxes are noncontractual debts in which the state is the creditor, and the payment of these debts is demanded through coercion and violence. While there may be taxes linked to the performance of certain economic activities (e.g., the sale of products), all forms of this economic policy share the characteristic of being indifferent to the consent of those individuals being governed. This implies that, akin to expropriations, the ownership of private assets is transferred to the state, regardless of whether their former owners have expressed consent or not.

In this brief text, some characteristics of taxes as an economic policy will be explained through analytical statements and valid inferences. All of this is done with the aim of clarifying certain concepts in political philosophy, macroeconomics, and financial accounting.

Tax Payments as a Form of Robbery

Every legal obligation to pay taxes is, in itself, an attempt to commit robbery; however, it can only be considered robbery if executed effectively, meaning if taxes are paid. In such a case, the use of this resource by the state will not determine whether the transfer of property was, or was not, an act of robbery (e.g., unlawful spending). Conversely, even if no law were to classify tax payments as robbery—given the definition used here—this would not imply that these payments are not a form of robbery.

While taxes—as an economic policy—are incompatible with libertarianism, they are not incompatible with capitalism. This is because capitalism solely refers to a form of social organization in which there is wage labor and at least some means of production are privately owned. Therefore, as long as both conditions are met, capitalism is compatible with tax payments.

Furthermore, in a free market, the absence of legal restrictions on the exchange of the property rights of assets, or on other types of economic agreements, means that tax payments are semantically compatible with certain types of taxes—for example, taxes not conditioned on the execution of any economic activity, such as wealth taxes.

Higher Taxes Do Not Mean More Revenue

Let’s consider a population with the following characteristics:

• Five thousand taxpayers
• A single tax requiring 10 percent of each taxpayer’s monthly gross income
• All taxpayers have a monthly income of $2,000 dollars
• Everyone pays their taxes as mandated by law

Assuming these premises hold, we can infer that the tax revenue in this population would be $1 million dollars monthly. What happens if one of the quantitative variables increases while the rest of the variables remain constant? If so, the only semantically possible result is that the tax revenue would also increase. This shows us that tax revenue is not only determined by the rates of certain taxes but also by other variables such as the quantity of taxes, the number of taxpayers and the value of each individual tax base, the frequency of tax collection, and the effectiveness in law enforcement (rule of law).

Regarding the value of each tax base, this variable can increase due to various factors: a decrease in the quantity or value of exempt incomes, an increase in the quantity or value of tax-deductible expenses, or an increase in the value of the economic variable on which the tax is applied (e.g., income, profit, wealth).

Furthermore, if we not only analyze the behavior of tax revenue as a variable but also its ratio to the gross domestic product (GDP) of that population, we find that this ratio would be affected not only by the aforementioned variables, but also by the rates of economic growth or economic decline. Therefore, if tax revenue decreases in a country but the GDP value decreases at an even-greater rate, the value of the tax-to-GDP ratio will be higher.

Understanding Net Profits

Within an income statement, net profits do not reflect the free cash flow or net cash flow of a business. This is the case because, for the calculation of gross profit, credit sales are included within the category of net sales (net revenue). Furthermore, the cost of sales does not refer to the total amount paid to suppliers during a specific period but rather to the cost of the products sold.

There are further conceptual differences between these variables, such as the exclusion of fixed asset depreciation in the calculation of free cash flow and the omission of debt repayment in the determination of net profits. All of these show that the financial reality of a business can be very different from what its taxable income indicates.

While the maximum marginal tax rate to which a taxable income is subject may differ from its effective rate, in the case of businesses, tax rates can exceed 100 percent of net profits if—due to a tax regulation—certain expenses and costs within the income statement cannot be considered deductible. In this scenario, two businesses may be subject to the same effective tax rate on their taxable income but with different effective rates on their total income.

Higher Taxes Do Not Mean Lower Fiscal Deficits nor Less Poverty

The fiscal balance is the difference between a state’s revenues and expenditures. Meanwhile, the primary balance refers to the difference between a state’s revenues and expenditures, excluding interest payments on debt. While a state can have both a fiscal deficit and a primary deficit, it is also possible for it to have a fiscal deficit and a primary surplus.

However, both variables are subject not only to the value of the income variable but also to the expenditure variable. Therefore, an increase in tax revenue alone cannot mean a decrease in the primary deficit or the fiscal deficit. In both cases, it is necessary to know the value of the expenditure variable to determine whether such an increase in tax revenue leads to a reduction in a certain deficit.

Similarly, if by poverty we are referring, in part, to a group of individuals with a certain range of consumption, wealth, or income that starts at zero, it is fallacious to infer that a tax increase means a decrease in poverty. As explained earlier—because both surpluses and deficits can exist—state spending and tax revenues, as variables, are semantically independent.

Additionally, an increase in state spending may result solely in either increased military expenditures or higher salaries for top officials. Lastly, if social spending leads to cash transfers to individuals at poverty level, this alone may meet the condition of a minimum income. However, it does not necessarily mean it also fulfills the condition of a minimum consumption—for example, the minimum consumption of essential nutrients.

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BREAKING: UN Planning New Pandemic To Establish Planetary Dictatorship

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According to a new poll, a majority of Americans believe that the Covid vaccines are linked to unexplained deaths. The Rasmussen survey of 1,133 American adults found that 53% think that the Covid shots could […]

The post Majority Of Americans Believe Unexplained Deaths Are Related To Covid Jabs appeared first on The People’s Voice.

Trump unleashed on Vivek over the weekend just hours ahead of the Iowa Caucuses.

Former President Donald Trump dropped all pretenses regarding Republican presidential candidate Vivek Ramaswamy, telling supporters while he’s a nice guy he doesn’t represent the MAGA movement.

Alex Jones interviews Vivek Ramaswamy on the Jan. 15 edition of the Alex Jones Show:

Trump unleashed on Vivek over the weekend just hours ahead of the Iowa Caucuses, accusing the former businessman of waging “deceitful campaign tricks” while pretending to support the former president.

Trump wrote on Truth Social:

“Vivek started his campaign as a great supporter, ‘the best President in generations,’ etc. Unfortunately, now all he does is disguise his support in the form of deceitful campaign tricks. Very sly, but a vote for Vivek is a vote for the “other side” — don’t get duped by this. Vote for “TRUMP,” don’t waste your vote! Vivek is not MAGA. The Biden Indictments against his Political Opponent will never be allowed in this Country, they are already beginning to fall! MAGA!!!

The 45th president followed up his initial criticisms with a full-throated ALL CAPS warning, strongly advising against voting for Ramaswamy as it would be considered “a wasted vote.”

A VOTE FOR VIVEK IS A WASTED VOTE. I LIKE VIVEK, BUT HE PLAYED IT TOO “CUTE” WITH US. CAUCUS TONIGHT, VOTE FOR DONALD J. TRUMP, BUILD UP THE NUMBERS!!! IN NOVEMBER, WE MUST TAKE OUR VERY TROUBLED NATION — A NATION IN DECLINE — BACK FROM CROOKED JOE BIDEN AND THE RADICAL LEFT DEMOCRATS AND THUGS WHO ARE DESTROYING IT. MAGA!!!

Until now, Trump had abstained from directly attacking Ramaswamy as he’d been hugely supportive of the former president throughout his Deep State prosecutions.

Ramaswamy on Monday issued a response to Trump’s comments saying while the President may be harshly critical, “You won’t hear me attacking him.”

“I’ve defended Trump at every step & respect him immensely. You won’t hear me attacking him,” Ramaswamy wrote on X. “I’m asking for your vote tonight because I believe it’s the right thing for our country. We cannot walk into the other side’s trap & watch the puppet masters quietly trot Nikki into power.”

However, Trump is taking no chances this week heading into the Iowa caucuses, where he’s hoping for a clean sweep against his GOP rivals, which would help solidify his status as the Republican nominee and would be a major blow to his opponents.

“Polls suggest Trump enters the day with a massive lead in Iowa as Haley and DeSantis duel for a distant second,” reports the Associated Press. “Entrepreneur Vivek Ramaswamy and former Arkansas Gov. Asa Hutchinson are also on the ballot, as is former New Jersey Gov. Chris Christie, who suspended his campaign last week.”

The fresh attacks against Vivek come as many have theorized he could be selected as Trump’s VP or at least secure a spot in his Cabinet, however, Ramaswamy has repeatedly insisted he would not want to serve in a Trump White House.

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The globalists are increasing their attacks on Infowars and the stakes have never been higher!

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The former head of the UK’s secret intelligence service has warned that the return of Donald Trump to the White House would pose a “political threat” to Britain. The reelection of former the former US […]

The post Former MI6 Chief Says Trump Is A ‘Threat’ To The UK appeared first on The People’s Voice.

Germany is preparing for a scenario in which Russia launches an “open attack” on NATO during the summer of 2025. Putin’s attack against NATO would apparently come following major victories by Russia against Ukraine, according […]

The post Report: Germany Is Preparing For Russia-NATO War appeared first on The People’s Voice.

Harari joined host Steven Bartlett on The Diary Of A CEO podcast last week for a wide-ranging discussion on the future of humanity

World Economic Forum advisor and top globalist transhumanist Yuval Noah Harari warned the elite their current global order is in danger if Donald Trump is re-elected in this year’s crucial presidential election.

In fact, the Klaus Schwab confidant said it is “likely” that Trump becomes U.S. president again and tries to dismantle the corrupt globalist establishment.

Harari joined host Steven Bartlett on The Diary Of A CEO podcast last week for a wide-ranging discussion on the future of humanity.

“Are you concerned that Trump might be elected again,” asked Bartlett.

Harari responded, “I think it’s very likely, and if it happens it is likely to be the kind of like death blow to what remains of the global order, and he says it openly. It should be clear that many of these politicians present a false binary vision of the world as if you have to choose between patriotism and globalism… between being loyal to your nation and being loyal to some kind of global government or whatever.”

Notice how he downplays the existence of the very same global government he advises and helped create.

During another portion of the interview, Harari explained how artificial intelligence could be used by a terrorist group or nation to create a virus that could kill billions of people.

That’s an oddly specific hypothetical isn’t it?

The pessimistic globalist later stated he believes humanity is near the end of its current existence as a species, saying, “It doesn’t necessarily mean we’ll be destroyed in some huge nuclear war or something like that. It could very well mean we’ll just change ourselves using bioengineering and using AI and brain-computer interfaces, we’ll change ourselves to such an extent that we’ll become something totally different.”

Watch the full podcast below:

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