Should We Adopt "Business Friendly Low Taxes"?

Dota writes:

Lee Kwan Yew of Singapore believes in targeted socialist programs which are implemented to help the very needy while still keeping taxes to a business friendly low. It’s a very carefully calibrated system which owes its uniqueness to the peculiar cultural and geographic variables that make up the Island state. I doubt many countries would be able to replicate this model. Dubai tried but failed due to cultural reasons.

I certainly don’t agree with keeping taxes to the very low level that business wants. Business doesn’t want to pay its fair share, and businessmen are rolling in cash. Businessmen will always invest their money no matter what the taxation level is, as long as it is reasonable. Corporations paid much more % of taxers in the 1930’s-1950’s and even into the 1960’s.
We only recently started dismantling the corporate tax structure, and now corporations contribute almost no taxes (5-10%) compared to the past when they represented perhaps 40-45% of taxes. Corporations invested just as much at the high levels as they did at the low levels. Rich people and businesses have tons of money, and they always try to get more. The way to do that is to invest, and that’s what they do no matter what the tax level is at.
However, when states and countries start competing with each other with lower tax levels, yes, businesses and the rich will tend to gravitate towards nations and states that have lower taxes to get a greater return on their investment.
But within a solid-state economy, there won’t be much difference. As long as they can get a return, they do it. We had an incredible number of rich people in this land when the marginal tax rate was 90% on incomes over $1 million. The rich won’t stop being rich or getting rich just due to high taxes. They will bitch and moan, but they will continue to invest their money and try to increase their wealth.

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0 thoughts on “Should We Adopt "Business Friendly Low Taxes"?”

  1. I agree whole heartedly. If someone makes 100 mil and you take 80, he’s still got 20. His cost of living is the same as everyone else’s, despite the fact he may enjoy a more expensive lifestyle, so a higher tax percentage for the wealthy than for the middle class and poor is supremely ethical.

  2. Hi Robert, I am a Singaporean. I think the world need to study this Lee Kuan Yew carefully. He is being championed by the capitalist not without good reasons. Singaporean workers are being exploited. Singapore is the only first world country without any forms of social security and government medical insurance. Our public housing system is not due to any charity from Lee Kuan Yew. The subsidy came from the political enemies of PAP government as well as subsistence farmers. The land was expropriated from those landlord.
    After PAP government take all our land, the sell it at the higher price. The PAP government is extremely rent seeking. It jack up the property price crazily that our fertility rate is now about 1.1 kid per woman, the lowest in the whole world. Our property price is one of the highest in the world now just 20% behind Hong Kong. Lee Kuan Yew’s greed found no bounds. Despite of all these social ills, he has continued till this day, importing foreigners massively, further pushing up our property prices and reducing our birthrate.
    Lee Kuan Yew succeeded in Singapore not because he is smart, but more because Singaporeans, the majority being the Chinese race, are able to take his abuse and turn bad things into good.
    Today, Lee Kuan Yew has run out of ideas. Singapore being the first to industrialize in the third world has seem all our industries hollow out due to high property price. Lee now pursue the financialization of our economy. Singapore is now a money laundering haven, tax-evasion haven, that allows the rich all over the world to avoid paying tax and hoard all their wealth in Singapore.
    Tax haven like Singapore, Luxembourg, Switzerland need to be destroy. The western countries has already achieve 100% employment and utopia in 1960s. Their problem now is due to parasitic tax haven state, as well as capitalist shipping jobs to India and China.

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