rocketpig said:
Agreed 100%. But essentially, that's just another way of figuring out how to lower your tax burden. If you have the money, you can move it around to get it where the tax rate is most favorable. I don't blame rich people for doing it but I do blame the system for not compensating and adapting to fit with the times. |
I think I might of been slightly unclear.
Say we live in a society that charges 25% tax on people making money off tobacco, and 15% on people who make wheat, because we view the making of wheat more positive then tobacco.
Tobbacco makes more money, so the richest people are Tobbacco buffs.
Now a generation later, nobody wants to smoke, and people really love breadbowl soup. All the rich people are in the bread industry.
The underlying reasons for why those tax rates exist still remains the same... so why should the system adapt?
I don't think the rich are hiding or moving there money, I just think that people are just getting rich through money in investments, a field generally seen as the most valuable when it comes to the economy.