Wednesday 30 November 2011

A lesson for Goverment Spendaholics.

I hear a lot about Italy and Greece these days. One of the things we hear is that Greeks and Italians don't pay their taxes. This moral failing is oft cited as a major reason for the countries being in the state they are in. I suspect it is vice versa. If my government were as prone to giving away my money as the Greek and Italian govts. are i would cheat on my taxes too.  Think about it. Who are the people cheating on their taxes? People who make money and who have opportunities to cheat. That is: private sector employees and small businesses. Who are the folks that the government spends all their money on? Public employees, bureaucrats and the unwashed masses who, as a rule do not make enough money to owe taxes. So where is the incentive for honesty here?
   Here in Canada things are more moderate. Our government has not yet completely spent us into the poor house, public sector employees make up less than half the workforce and people generally don't try too hard to cheat the tax man. But make no mistake. every time we read about billion dollar G20 summits, or lavish Governor General expense accounts, or any other profligate waste by our government or bureaucracy it has an effect.
   People don't really understand billions and trillions of dollars. It has no real meaning. We understand wealth in terms of what we could expect to have or dream of spending. So when some government fat cat spends 100 grand renovating or travelling or partying , the average joe thinks: "shit. that's about as much as i can save up in 20 years, gone in a day".  Or when the government tells Joe's dad that they are going to have to index his pension in order to make a dent in the deficit, the old guy thinks :" how many pensions do you need to claw back to pay for Strombolopolus to throw a music awards party  at my expense? " The two men then start to see their obligations to pay their taxes in a different light.
    Faced with  morally bankrupt government spending of taxpayer money, the moral argument against cheating on ones taxes goes out the window. The more the government wastes, the less inclined we are to give them money, and the more inclined we are to break the rules in order to do so.

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