Financial loophole

September 7, 2016

Financial loophole

Taxation is created by government for government purposes. I personally do not know any single country in this world that does not have a taxation system and anyone in a country that have a taxation system. Originally, it was built to speed up development, provide employment, run government administrations etc. The people(you, him, her, them, and me) contribute to uplift, improve standard, work together and increase manufacturing etc. Now, the situations is not same. Governments have gotten smarter with taxes. For them to use the money they provide projects, contracts, grants etc and in most cases thousands apply and few gets the chance to win. It is also true that the person that won last previous years may win again this year and next year. Worst of all it is used by most top official to start their personal businesses, expand their territorial businesses, colonise others, and domination over the rest by using it as Aids, grants, manufactured goods and sell tangible devices to improve their access and personal gain e.g. Farming tools. When money is taken from public, it is also use for loans, share, interests business. This is only true when money is either used borrowed for business or government decided to save it or cut expenditure on other things they already have or give large amount but use small chunk of it.

Benefits: The failed people and the contributors remain the common workers. Once they contributed or paid their tax money, they do not receive or even know what is done with their money, how much is used, how much remain to be used for later years. Good governments however gives documents and try to be transparent about it, but most of it comes before the actual work is done. In some cases governments too failed to control their taxes because individuals can exploit loopholes in government specification leaving government with good reports to give to the public while what is being done is an answer to procedure in place not how money is used and what it produced.

Blames: Imagine government have one billion in collection this year and the projects for this year from both governments and tax payers is beyond one billion, then in this case the government needs to either borrow or go bankrupt. If they go bankrupt, they pushed dept which becomes a negative performance that means less delivery and reduction in economy activity in the entire country. An individual who took grands earns profit, that only expands their business, but the tax payer looses. Government put saving in interest or share, it gain profit and who exactly take the profit at the end of it all remains a mystery. Not only that imagine there is an out break of diseases or emergency that means government use more tax money than intended for that calendar year. Tax payer continue paying tax for the entire life, never gotten grands, did not save any money, do not have share etc at the end of its all, they might have accumulated e.g. a billion money enough for government to use for an entire year. Really don’t we missed anything here.

Imagine: A system we call Ayiko. Whatever come from anyone is made sure spend on the person if not be given back to them. A business earns interest, their share be paid and interest charged on the extra and calculated on every account the money comes from e.g. state, mega cooperation etc. Government save money from a certain group of people, they pay them back exactly what owe them and take what owe government. Other people uses their health care card more often than others, others used their insurance more than the others leaving the other on lost and another on gain. Spend what you contributed and earn what is left. That means if you work for ten years and accumulated say ten thousand, then whether you work or not it remains your income to spend, use, and do whatever you want with.

The negative: Change in government create a big problem because all that was in with other government including certain time grants, loans, etc are lost especially when it involves the outgoing. Scholarships, foreign Aids are an example where immediate people are chosen in spite of who you are and where you are this true because information reaches those who are close to such money first then later the others. Imagine you work in ministry of immigration, there are free services like blood test etc where do that money comes from?