Tuesday, August 30, 2011
During a prolonged crisis, inheritance taxes, new forms of taxation or similar alternatives reduce or wipe out resources for investments, discouraging the trust of investors, penalizing the cost of the public debt and the possibilities of its renewal at its expiration. In this context, imposing taxes on property and on income is equivalent to a suicidal anti-subsidiarity of the state to the citizen. Those who legally possess assets, on which they have paid the proper taxes, have contributed to creating wealth and, thanks precisely to these assets, continue to produce them with investments and consumption.
Further forms of taxation would not be synonymous with solidarity but only with greater public spending and, perhaps, a higher debt and more widespread poverty. High taxes penalize saving, generate distrust in the ability to stimulate recovery, hit families and prevent the formation of new ones, as well as creating uncertainty and precariousness in employment. In short, they lay the foundations for another phase of unsustainable development.
This is the situation to explain, avoiding -- to borrow Einstein's words -- deceptive simplifications. Every important action, to obtain success, must be clear in its context, in its objectives, clear in assessing the necessary resources and about their organization. Authentic global solutions to the crisis must therefore take into account what gave rise to it, its extent and the time and means required to resolve it. In other words it is necessary to reach a broader horizon. As Noah did when he raised his gaze and succeeded in going beyond himself and in saving humanity.
(Hat Tip: Edward Afield.)