Why Taxes Make the Rich Richer

And why taxation is not a way to fight poverty

One of the greatest myths in the world today is economic equality. Not only is the world not economically equal, but also the world cannot be economically equal. And the simple reason is this — people are different!

People get involved in different thoughts and ideas that drive their lives. And those thoughts and ideas have consequences. Anyone trying to balance the economic divide through taxes is just doing more to fuel it.

There will always be loopholes in the tax law, and the rich will take it. In fact, tax legislations actually teach the rich how to be smarter with their money.

Generally, money is a measuring stick for value. And we are continually taught that throughout our lives. But things are slightly different now (to put it mildly). And you will rarely find someone who can expressly admit it.

The super-rich knows this, but it will do the world no good if they openly admit it. But money is no longer a measuring stick for value, instead, it is now a tool. What kind of tool is it? What it is used for? Where do they produce it?

Where Money Comes From?

Money is supposed to come from value or productivity. But today we have currencies such as the USD, GBP, and the JPY. That is what everybody knows as money.

We don’t point to a book and call it money. We don’t point to a new car and call it money. We don’t point to a building and call it money. But without the value of those things getting measured in money, what we call money isn’t money.

We call currency money. And currencies are manufactured. Just like paper is manufactured, your USD (or the currency of your country) is manufactured. A more accurate word is “printed”. Money is printed.

So, where does money come from? The better question is; where is money printed? The answer is simple: The Central Bank.

You need to realize this as a person living in this financial age. You will see that clearly in a bit.

The Unfair Advantage

The super-rich knows money comes from the central bank. But that doesn’t mean they have an unfair advantage. This knowledge is an advantage to those who understand it.

Some are trying to work for money, and they will always be disappointed. This is why you should never work for money. Money is a creation of the central bank designed to enslave people who refuse to look at the bigger picture.

Yes, we all get some form of earned income one way or another. But if you want to be rich, you have to come close to the source. And knowledge takes you closer.

Earned income is heavily taxed and has little leverage. While most of us have to start from there, it is actually the worst type of income.

Think of the central bank as a private business. What do they buy? What do they sell? Remember that they are the manufacturers of what you call money in your country.

When some people realize how their country's central bank operates, they try to fight it or scream “unfair”. But you can’t fight such institutions and win. The government would have to fail for the central bank to fall. And if the central bank fails, do you think the world can bear the economic fallout?

Right now, no better idea is widely accepted that can dethrone the concept of central banks. So, you have to live with it and be smart.

The central bank buys debts and prints money. They also control the supply of money through policy. So, here is the question:

Is it possible to have the central bank as your client?

Think about that. If your client can print money, legitimate money, then it wouldn’t matter how much you price your stuff. You know they will always be able to afford it.

So, are there people who directly make the money that is printed by the central bank? Yes. Let’s talk about how they do it. And we are going somewhere with this.

Aside from the fact that the central bank is owned by banks, you won’t find any direct link from them to any company. Does that mean you should go start a bank? Well, if you have the resources, owning a bank can be a very interesting business. Even billion-dollar tech giants envy the banks and are trying to stick their noses into financial services.

But asides from a bank, is there any other way to take massive advantage? Yes, there is. But there is a “middleman”. That middleman is the government of the country.

Have you ever heard that the US government is too broke to afford something? No. All that has to be done is for the Congress and Senate to approve it. Most other countries don’t have this luxury because their debts are in another currency that they have no control over. And when there is too much foreign debt, the central bank policy of the country will be effectively dictated by these foreign debt holders, often known as bondholders.

So, if you want to be stupid rich easily, make the US government your client. This also goes for all other countries with huge healthy economies.

Connecting the Dots

Super-rich companies do not depend on the purchasing power of the individual. They depend on the ability of the government to force the central bank to print money.

Yes, this includes government contracts. But it is not limited to that. This is not to hate on companies that live on government contracts. This is to show you that they are smart-ass. Whether deliberately or accidentally, they have figured this puzzle out.

This is why when certain companies get big to a certain extent, they create a division that feeds on government contracts. Now, government officials, economists, politicians, and every stakeholder within this process believe this system will keep working flawlessly.

But will it?

The Unspoken Thread

Is it possible to force the government to buy? Yes. Even though it is sinister, some have actually pulled it off. Figure this out on your own. Spilled enough secrets already.

How are the debts reconciled? That’s why taxes exist. Not that the taxes will ever be enough to pay all the government debts, but the mere fact that taxpayers are always there to be thrown under the bus.

And there is also another consequence. And that is inflation. The purchasing power of the money you own will be reduced gradually. So, you can make twice the amount of money you made last year and only be able to afford half of the things you can last year.

This is tricky when you earn a salary at a job. You keep getting promoted and getting a salary increase. But with the purchasing power of the currency reducing, you can end up right where you started.

This is why you must never rely on earned income alone. Take advantage of this insight and start creating sustainable sources of income for yourself and your family today.

Modern-Day Robin Hood is Fake

Some people like to paint themselves as the modern-day Robin Hood. And at this point, if you ever had doubts about who Robin Hood really was, it won’t be out of place. They have made the character seem like a hero to common people. But in the end, the guy was still a thief.

We live in the greatest time in history economically. And this isn’t because some people are super-rich. Rather it is because now more than ever, anybody can rise from poverty and become rich. It is easier today than at any other point in history.

So, what made that possible? Is it taxes? Is it taking from the rich and giving to the poor? Is it government laws of equality? Absolutely not. Rather, it is innovation and invention.

In the past, people were kept in the bondage of poverty not because they lack money. Instead, it is because they were programmed to depend on the government or the ruling class in some way. This is what real poverty is — dependence.

Several countries with high levels of poverty continue to be like this. In those countries, you would observe that a significant chunk of the working class works for the government. And they make it extremely difficult (whether directly or indirectly) to make anybody create a large corporation that employs thousands of people.

Modern-day Robin Hood is fake. This is because today more than ever, we know how wealth is created. And it is not created by governments taking money from the wealthy. It is created by people making decisions to produce something amazing and having the enabling environment to do so.

Taxed or Stolen?

The origin of taxes is not taught in schools. But it is something anyone who cares about the economy should understand. Even if you don’t care about taxes today, the dynamics of how money works today should be worth your attention.

The central bank has the ability to print money on one hand. On the other hand, the government has the power to take as much money as it can from the people through taxes. And some would argue it to be a high-level manipulative robbery.

If you want to know if the people that want to tax the rich are on your side, find out what they have done with the taxes they have collected thus far. Money has a way of becoming ineffective in the hands of such people. And in most cases, they hand it back to the rich (in contracts and projects).

In a society where the richest people are those who do business with the government and win government contracts, economic growth is one-sided. If a person bets on a future trend and makes billions, forcefully collecting a part of the billions to give to those who didn’t have the foresight to bet on the future is detrimental. People shouldn’t be rewarded for not having foresight. Instead, having foresight should be taught in every school.

Taxes Make the Rich Richer

90% of the tax code is about how to reduce taxes. They are famously known as tax loopholes. And every time new tax legislation is passed, the headline is what most people read. They don’t read the fine print.

The headline will make it seem like the government is doing the right and good thing. But the fine print will show you what is actually going to happen. For example, the headline might say the high net worth individuals will pay 2% more in taxes.

But in reality, the 2% additional tax is based on some conditions and the rich would just find a way to be exempted based on those conditions. (It is strikingly funny that some of the wealthiest people in the world are currently making moves that reduce their net worth).

When taxes are imposed on the rich, they all get exempted one way or another. And then, the tax money will go back to the rich in government contracts.

There are a few noble things about taxes, but helping the poor is not one of them. The poor need to see an example of greatness and be inspired that they can become as successful as that.

Conclusion

The super-rich knows where money comes from but will rarely admit it publicly. Money is supposed to come from the creation of value. But the central bank prints money.

So, those who get the printed money can flush the market with money, attract the best talents, and (in most cases) create the best thing on the market. And that is how the rich get richer.

The taxpayers are on the other side of the scale letting this system go on. Without taxpayers, bondholders will dump hard. Taxes pay the debts owed by the government to bondholders. Maybe this system will go on indefinitely. Maybe the whole thing will come crashing down like a house of cards. Who knows? All I know is that we are living in interesting economic times.

Taxes make the rich richer. Poverty is not the lack of money but a lack of purpose and resourcefulness. Government officials do what they do to try and stay in power. Only a naive person would think the government will change their financial reality.

Yes, some governments are better than others. But one of the core purposes of government is to get out of the way of people who are keen on creating something amazing.

Be wise for your own life.

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