Saturday, March 27, 2010

Taxation! Designed to keep you Poor!

Have you ever wondered why some people can get ahead financially while others sink?

Well there are many reasons for this including gambling, alcoholism, drugs etc, but these are all choices, choices that are made by You! There is however one so cleverly devised thing in life that you have no choice with, and that is called Taxation! Ok so taxes are just a part of life that has always been and will likely always be, but many governments are taking downright liberties with taxation!

Here I'll explain why this is so, and show you how the hidden tax grab hits everyone of us without most even realising it!

Let us say for example you bought a 1kg box of Cornflakes, first the corn is planted & grown, then it is harvested and sent to a gain storage depot, from there it may be sent overseas or to a processing plant, the later is what we are interested in for our example.
After the processing plant has turned the corn into Boxes of Cornflakes, these boxes are then transported to various warehouses or stores to be sold to the unsuspecting consumer. It's probably worth mentioning here that while the example I'm giving here is only a simple one, it is an accurate reflection of what happens to everything you purchase, from tap water to a house or new car!


IMPORTANT !
Here's the catch that the media, politicians, business leaders & financial experts never reveal when sprouting about tax relief's, prices or anything else for that matter.

Every person that has had something to do with the Cornflakes, that being the farmer, truck drivers, process workers and warehouse staff &/or retail store staff, all earn wages, and as you know all wages attract payable Income Tax! When companies &/or corporations become involved they too must pay Company or Corporate Tax. This is where every single consumer gets shafted by corrupt taxation! 
All these Income Taxes and Company/Corporation Taxes are not only being paid by the resepective parties, but also are added to the cost price of everything you buy, thereby doubling up these taxes. (ie Those people that earned an income from the box of cornflakes, have paid the tax on the cornflakes, however the government demands that the purchaser also pays these taxes again).

Then they slap a GST or VAT of 10-15% on top of not only the actual tax free cost of the item, (this is the part they tell you about), but also onto 100%  of the various taxes they have already received by way of Company and Individual Taxation,  then demand another100% of those taxes when you purchase the item!

The hidden, hidden taxes!
One should also remember that while it can be relatively easy to understand how all these taxes are added, what isn't usually taken into account, is the embedded doubly hidden tax. This is once again paid by everybody involved in making the box of cornflakes, they include things like oil, gas, electricity, water  even the box which they come in,  all of which are subjected to the same processes described above!

Note!
Goods and Services Tax (GST) or Value Added Tax (VAT) is nothing of the sort, it's just  a devious way to enforce people to pay tax upon the taxes that were already paid!
 
Lets say our box of Cornflakes at the checkout cost $5:50 inclusive of GST,  you'll  immediately assume if the GST rate is 10% then the tax is $0:50c. Not for one second giving any thought to all the taxes already paid and so built into the cost of the item! So what is the real tax (GST) rate? Well I'll let you decide that for yourself, but I will tell you that it is far in excess of 10%, 50%,  even 100% in most cases!

Taking everything into consideration, if taxation wasn't added to the price of items at every step of the way, our $5.50 box of cornflakes would possibly cost somewhere between 20c and 50c, the GST on which would be 2c or 5c respectively! (note this is just an example, I'm not privy to the untaxed manufacturing cost of Cornflakes , but does show just how much you are being taxed on every item!

Below is a diagram I made to help visualise what is happening!

Click image to download fullsize























One of  the biggest kicks in the face from such underhanded and deviate tax systems, is that when you purchase something, you are in reality purchasing with money that you have also paid Income Tax upon!

1 comment: