Taxes help raise wealth

April 10, 2014 

In recent articles and letters to the editor the subject of taxes are debated. Taxes are necessary in a successful society and economy. Without taxes businesses would be nonexistent. How could they transport their products without roads and bridges, courts to settle disputes, schools to educate, and protection with the police and fire departments? Taxes are not fairly assessed or paid. United States multinational corporations have added $206 billion to their offshore bank accounts this year to avoid taxes. Tax revenue lost from corporations and the ultra-rich is $300 billion this year. Wealth tax evasion costs 9 percent of the U.S. budget each year.

Capital gains taxes are 15 percent while wage earners pay up to 35 percent. If I own a $100K home, real estate taxes are assessed. If I own $1 million in stocks and bonds I owe nothing because this is not considered property even though that share of stock represents a part of the building and machinery or inventory of that business.

The tax avoidance of the wealthy is one cause of the inequality we see today. Having the rich pay their share of the taxes is not a scheme to transfer wealth from the rich to the poor but a transfer from the private sector to the public sector. The public sector builds the roads and bridges and pays for education. Higher taxes in the long run will assist businesses to grow because a strong middle class will buy more and the poor will rise.

David L. Eilering

Glen Carbon

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