Taxation: The Philosophical and Practical

Can you minimize your taxes and still contribute? [The Rude Awakening] June 08, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Taxation: The Philosophical and Practical - Libertarians want to keep their money. - Marxists want to redistribute income via taxes. - Can we build the roads without government? (Of course we can!) [A $557 credit has been applied to your account.]( [Please click here to learn how to claim it.]( — Customer Service, Paradigm Press [Click Here To Learn More]( [Sean Ring] SEAN RING Good morning from the East Coast! I was finalizing my Italian taxes a few days ago and thanking God at the same time. Thanks to the Italian government passing its freelancer law in 2020, I was never going to feel like most Americans do every April 15th. Before I tell you the practicalities of my situation, I wanted to give you the theories behind taxation. As you know, I’m a right libertarian. I prefer the term “leave me the f*ck alone” libertarian, but we’ve got to have standards around here. But I’ll give the other team their due. So we’ll define taxation, evaluate from libertarian, mainstream, and Marxist viewpoints. Then I’ll show you what I did. Tax: We Know It When We Feel It Taxation is the contentious means by which a government finances its lavish and lascivious expenditure. It imposes charges on citizens and corporate entities, and has always been a contentious issue in politics and philosophy. Taxation sparks debates on the principles of fairness, economic freedom, and the appropriate role of government in society. This piece aims to examine the views on taxation from different philosophical perspectives - libertarianism, traditional economic arguments, and Marxism - to provide a better understanding of these schools of thought. The Libertarian Perspective In the libertarian philosophical framework, individual liberty, including economic freedom, is highly valued. Libertarians perceive taxation as coercion infringing on personal property rights. These are the main reasons why, in a libertarian framework, paying the least amount of tax possible is moral: - Property Rights: Libertarians view taxation as a violation of property rights. The belief is that individuals have a right to the fruits of their labor, and taking away a portion of their income via tax without explicit consent is robbery. (Remember, the IRS pointing guns at your head makes it robbery. Inflation is merely theft.) - Voluntary Exchange: Libertarians advocate for voluntary transactions. Taxation, being mandatory, contradicts this ideal. - Efficiency: Many libertarians trust the efficiency of the free market. Lower taxes mean more resources remain within the private sector where they can be deployed more effectively. - Limited Government: Libertarians endorse limited government. They believe the government's role should be to protect individual rights and property, maintain law and order, and, rarely, provide public goods that cannot be efficiently delivered by the private sector. - Individual Responsibility: Libertarians value individual responsibility and self-sufficiency. Lower taxes allow individuals to manage their resources according to their needs and interests. Despite this, know that not all libertarians are against all forms of taxation, especially if they’re voluntarily agreed upon. Wealth and Tax Policies An interesting question often asked is why wealthy individuals advocate for higher tax policies rather than simply donate to the national treasury. People who advocate higher tax policies want to achieve systemic changes, which require collective action. I think this argument is weak sauce, and I only include it for completeness. As far as I’m concerned, if Warren Buffett wants to pay a higher tax rate than his secretary, he should shut his gob and donate the money. Here’s [the link you need]( Warren. Here's why some people think richesse oblige will not cover it: - Collective Action: While a single wealthy person's larger contribution may help, it's unlikely to make a significant difference on a national scale. Collective action is essential for large-scale issues. - Fairness: Advocacy for higher tax policies for the wealthy is often about a fairer distribution of the tax burden. Voluntary contributions wouldn't address the underlying issue of fairness in tax distribution. - Systemic Change: Voluntary contributions don't lead to systemic change. Advocacy for higher tax policies aims to change the system to reduce wealth inequality and improve public goods and services in the long term. - Predictability and Planning: Governmental budgeting requires predictability in income. Voluntary donations are not predictable or guaranteed, making them an unreliable source for budgeting for things like infrastructure, education, and healthcare. Again, none of these arguments cut it with me. The Marxist View Karl Marx, in his Communist Manifesto, proposed a progressive income tax as a measure towards a communist society. Here's why Marx emphasized income tax: - Redistribution of Wealth: A progressive income tax redistributes wealth. In Marx's view, capitalism leads to a concentration of wealth among the bourgeoisie (capital-owning class), while the proletariat (working class) remains poor. Progressive taxation mitigates this effect. - Addressing Inequality: Marx hated inequality, a flaw he attributed to capitalism. A progressive income tax reduces the income and wealth of the highest earners, helping to level the playing field. - Preparatory Measure for Communism: The purpose of a progressive income tax wasn't to establish a permanent tax system, but to erode the power of the bourgeoisie and facilitate the transition to a classless society. - Funding Public Services: Marx recognized that in the transition period to a communist society, public services and state functions would need funding. A progressive tax system provides the means to do this. - Class Struggle: A heavy progressive tax was seen as a tool of class struggle, a means to expropriate wealth from the bourgeoisie and undermine their economic base. It’s important to note the practical implementations of communism often diverged significantly from Marx's original ideas, and have had varied results. You know, like [one hundred million dead in the twentieth century](. [US Attack on Nord Stream a Covert “Act of War”?]( [Click here to learn more]( In this shocking presentation, new evidence reveals the TRUTH about the attack on Nord Stream, and why millions of Americans would be devastated from the fallout. [See for yourself.]( [Click Here To Learn More]( Summing Up the Systems Taxation and its moral implications are complex issues that touch on fundamental philosophical debates. Libertarianism, with its emphasis on individual rights and limited government, tends to view taxation skeptically. Traditional economic arguments advocate for progressive tax systems for fairness and societal well-being. Marxism uses taxation as a tool in the struggle against inequality and the transition to communism. What I Did One of Warren Buffett’s rules is to never lose money. But I laugh when people tell me their portfolios are up 50% on the year when their tax rate is 40%. Almost the entirety of the Western world starts on January 1st down 40%. Between income tax, property tax, state sponsored healthcare, capital gains tax, and numerous, smaller taxes, the average Westerner is hurting. The below average Westerner is crying for help. Thanks to Italy’s freelancer law, I was able to get my tax rate down into the single digits. The conversation with my trusty accountant was gleeful. The only thing left now is to pay the tax. No cheating. No even approaching that line. (Remember, I’m a citizen here. I’d never get away with anything. It’s all electronic in the EU now.) I legally lowered my tax rate to single digits thanks to my second passport, my online business, and a good accountant. (That’s two of the four Rude Pillars for Financial Freedom, by the way.) So it can be done. How flexible and forward-looking are you? If you’re reading this, you’re enough. Have a lovely day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( In Case You Missed It… Byron King: The Season When Fortunes Are Made [Sean Ring] SEAN RING Good morning from The Big Apple! My friend and ace collaborator Byron King has come up with another gem for [The Lifetime Income Report](. I asked if we could run it in the Rude. And thanks to Byron’s usual magnanimity, it is here run. I’ll get back to you tomorrow with some interesting goings-on. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [Byron King] BYRON KING The Season When Fortunes Are Made Welcome to June. Even though it’s not officially summer (not until June 21), it’s still safe to say that the summer season has begun. Of course, we just celebrated Memorial Day in the U.S., traditionally considered the beginning of summer. Most schools have ended or are ending. And vacation travel season is kicking off, with packed airports, airplanes, and even cruise ships, per news I’ve seen. But in this note, we’re not going to talk about vacations. No, today I’ll clue you in on how summer is often a time when fortunes can be made. That is, to many geologists, summer has its own meaning, what’s called field season. It’s when geologists head out into the boondocks to walk the ridges, hills, and valleys, kicking rocks and gathering data that goes into maps and other elements of scientific research or commercial exploration of the earth. Of course, actual rock-kicking fieldwork is just one aspect of understanding the world, how it’s put together, and what’s down there, underfoot. There’s plenty more that goes into exploration, from aerial and geospatial imagery to all manner of geophysics, geochemistry, and much more, to be sure. But whatever you’re doing in terms of exploration or development, it never hurts to begin with a solid grasp of bedrock geology at the surface. My Field Camp Days From Long Ago… To me, the really fun part of geology is going out into the field. Heck, my first summer field camp was 48 years ago, back in 1975 in North Park, Colorado, a high, inter-mountain valley that abuts the border with Wyoming. I had just finished my sophomore year in college, and one of the requirements for majoring in geology was to attend a field camp program. The thing is, Harvard didn’t sponsor a summer field program in those days, so students were encouraged to find suitable programs elsewhere. I chose a camp run by Purdue University, of West Lafayette, Indiana, which entailed humping out to the Colorado Rockies for two months. Yeah, two months in the Rocky Mountains in the summer, hiking around, and climbing up and down hillsides all day. Tough duty. And I just plain loved it. Indeed, every minute of field camp was a learning experience, from driving west on I-70 to see, for the first time in my life, massive mountains appear on the horizon, to learning about the distinct hazards of summer lightning storms while standing atop the peak of an extinct volcano. How loud is the thunder when lightning hits a rock about 25 feet away? I can tell you… Really Loud! The Purdue people were great. Their program was great. And I’m forever grateful to all those old Boilermakers (the school mascot) who got my brain into “thinking like a geologist.” [We just had the biggest — and most drastic — operational change in our company’s history.]( I believe it will have profound effects on our editors and readers alike. I’m urging you to listen to a short memo from our VP of Publishing. He explains why, after 20 years, this decision was 100% necessary… […and why this “fix” could have a significant impact on your personal wealth.]( [Click Here To Learn More]( What’s Happening This Summer? Okay, enough reminiscing. Because currently, I’m watching a host of companies this summer, all of which have well-funded and aggressive field programs across North America. Today, I’ll focus on just one geographic/geological area, the large swath encompassing Alaska and northwest Canada, including the Yukon, Northwest Territories, and northern parts of British Columbia. In particular, I’ll look at a feature called the Tintina Belt. [SJN] The map above illustrates a few things, in a broad sense. The Tintina Belt is bounded on the south by the massive Denali Fault, which transects Alaska and the Yukon generally west-east. And on the north, Tintina is bounded by another massive fault zone called (no surprise) the Kaltag-Tintina Fault. I won’t get heavy into technical geology, because then we will rapidly spin-off on plate tectonic tangents. I’ll just say that this part of North America is a very complex series of rock types. Things range from multibillion-year-old Precambrian basement to shallow and deepwater sediments, along with vast amounts of volcanics of many ages and even material that has been pushed up from far below, from down in the mantle of the earth. Yes, it’s quite complex. Indeed, a lifetime of summer field camps would not be enough to figure it all out. But the good news is that this year is the 125th anniversary of the 1898 Yukon gold rush, when tens of thousands of “tenderfoot” southerners — people from other parts of Canada and the U.S., plus elsewhere in the world — came to Alaska and the Yukon in search of gold. And over the course of that century and a quarter, a lot of people have figured out a lot of geology. The point is that all that rock movement, especially along the Denali and Tintina fault zones, has allowed many zones of igneous rock and other metamorphosed material to form. And embedded in these fascinating rock structures are vast amounts of ore-forming minerals. The long and short of things is that the Tintina Belt is a treasure trove of valuable elements: gold, silver, copper, lead, zinc, and much else. And currently, dozens of companies work there on exploration and development plays, along with many solid production camps in operation. There Are Many High-Quality Companies Here Off the top of my head, I could name a dozen small, high-quality Yukon exploration companies, all with excellent geologic assets and strong management teams. And of course, it’s early in the summer so I expect to see strong results from here, there, and all over as the months pass by and we move into fall. Some of these small guys surely will surprise us. I can’t end, though, without mentioning an outstanding company called Fireweed Metals (OTC: FWEDF), with a market cap of about $90 million. I’ve followed this one for about six years, since the geologic team was in the early stages of work on a rich zinc deposit in Yukon (with lead and silver as well), near the border with Northwest Territories. Fireweed’s zinc alone makes for a world-class deposit, remote as it may be. But what has added even more glitter to the attraction was an acquisition last year of one of the best tungsten deposits in North America, the MacTung deposit, right on the border of the Northwest Territories. You may or may not know that tungsten is a critical mineral for U.S. and Canadian industry, ranging from automotive to aerospace and defense. Right now, almost all tungsten in North America makes its way here directly from or via China, which is unacceptable in the current political climate. U.S. and Canadian political powers have made no secret that they want domestic tungsten sources, which bodes well for Fireweed. And the company has an aggressive program to drill, do more geology, and come up with resource numbers to make people look twice. And summer is field season, as I noted above. Okay, we could discuss this all day, but that’s it for now. I’ll follow these companies, monitor results, and have more for you as summer unfolds. I’m even planning to travel up to Yukon in a few weeks to see the projects, kick rocks and enjoy some field camp again. One final point: FWEDF is not an official recommendation for the publication, so if you buy shares, be sure to watch the charts and never chase momentum. I keep a continuous eye on these guys, and as things develop, I’ll keep you posted. So please keep watching and reading. Until tomorrow. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. 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