Wednesday, March 16, 2005

Illusionary tax dreams

Today I read somebody commenting again that "less taxes is a good thing" and that taxes are bad. That they rob people of their money. Most things in the Netherlands are still (be it now barely) paid through taxes however. And as such they are cheaper then they would be if they would have to be paid individually. The collective nature means everything from health insurance and pension plans to childcare is more or less affordable.

The idea that less taxes means you get to keep more of your money is an illusion, unless your filthy rich (as here those who are rich pay more taxes per euro earned). In the end if taxes and as such social securities and institutions go away, we will need to pay for everything individually. Which is more expensive then paying for it collectively. In the end if your middle class, you will end up with LESS money in your pocket, not more. Your costs for healthcare, even your TV licence will simply go up. Much more then taxes could ever go down.

Of course some people believe they will never get sick, never get old, never lose their job, etc. and as such they don't need such insurances. The foolishness of this I doubt I need to point out. They also think why pay for other people's schooling? Failing to realise that if your entire workforce is not well educated the entire counties economy will eventually fall. I actually could go on with examples.

Of course taxes should be put to good use, and that unfortunately almost never happens anymore in The Netherlands. But the illusion of "less taxes equal more money in my pocket" needs to be shattered. Because it simply is not true!

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