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Showing posts with label Taxes. Show all posts
Showing posts with label Taxes. Show all posts

Saturday, July 06, 2013

A low flat tax is not something to laugh at

governmentnowealth

Flat_TaxSome believe that in order to get enough money to service the country, taxes should be raised. However, that is a sure-fire way to  bring the economy to a halt, since investments will come to a grinding halt and the people will either do their utmost to keep most of their money to themselves, or go look for greener grass elsewhere.

Others believe that government should should stimulate or boost the economy through fiscal or monetary policy. Jasson Urbach writes:

“The simple reason government spending fails to end recessions is because every rand the government “injects” into the economy must first be taxed or borrowed out of it. Government merely redistributes money from the productive to the non-productive sectors of the economy. No new income and, therefore, no new demand for goods and services is created.

It is not government but private firms that generate wealth and are the engines of economic growth. Government cannot create new purchasing power out of thin air. The mistaken view that fiscal stimulus can pull economies out of recession persists because the jobs created through government ‘make-work’ programmes are clearly visible. What we cannot see are the jobs that would have been created elsewhere in the economy with that same money had it not been taxed or borrowed by government.”

He further writes about the limitations of government monetary policy. “At best,” he writes,

“it is simply a lever that can be adjusted to influence growth in the short-run. Consider what happens when the Reserve Bank cuts interest rates beyond what would have occurred if interest rates were freely determined by the interactions between the demand and supply of credit. When interest rates are cut too far, the capital allocation in the economy is skewed because capital is allocated to marginal activities. For example, if real interest rates are negative or zero, it would be unwise to hold cash balances because the investment will not earn a return. In this case investors would look for alternative places to invest. In low interest rate environments, these alternatives might be marginal activities that normally would not attract investment. When interest rates are forced to rise because of increasing inflation, marginal investments are exposed and the economy is likely to relapse into another period of recession.”

He can continue reading Urbach’s article entitled A low flat tax will lead to investment, growth and job.

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Wednesday, September 29, 2010

Sin taxes and government's investment in sin

We all agree on one level that "sin" taxes are a good thing, because we believe that these "sin" taxes are a deterrent to buying products that fall under these "sin" tax laws. Usually, smoking related products such as cigarettes, and alcohol are "sin" taxed. Of course, we all believe that people will think twice about buying such products because of these extra taxes on them.

I am not sure that this is indeed the case! From my experience, many of these "sin" users simply cut somewhere else in their budgets in order to keep purchasing their "sin" delights!

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Saturday, April 18, 2009

Christian Voting Must be Biblically Based

It is always interesting to talk to people to hear their criteria for choosing who to vote for in an election. With the 2009 elections coming up on 22 April, it is time again to hear the ideas of people. People have different reasons for why they vote for certain political parties.

Most people look at financial issues, hence, their political outlook is mostly for personal gain. How can the government make my life better? This of course shows a dependence on the government. This is also not just an issue for the poor! The rich have the same thoughts. They would like a government that will ensure that their riches don't get squandered on unnecessary taxes, or will at least see to it that the money of the rich will keep on growing.

As Christians, we march to the beat of a different drum… a heavenly drum! And that drum is not beaten by us, the Christians, but by the Lord of the universe, Jesus Christ Himself. It is very much a Lordship issue, even in deciding who we will vote for in a political election.

God is not uninterested in politics! This is not that one sphere of life where God leaves man to his own devices. This is not a no-go zone for God! "The earth is the LORD's and the fullness thereof, the world and those who dwell therein. (Ps 24:1)" To think that God can be excluded from any sphere of life, no matter how corrupt it has become, shows a naivety that does not belong with clear thinking people.

Politics, essentially has nothing to do with power. It primarily has to do with justice and care for a nation. It is exactly the quest for power by politicians that nations end up like Zimbabwe, DRC, Middle-East and China. Politics is about the good of the country, not about the individuals leading the country. As Lord Acton once said: "Power tends to corrupt, and absolute power corrupts absolutely." This is too much of a reality in our modern world not to take notice of it.

So, how does this choice of who to vote for affect Christians? When we look at who gets the vote in South Africa, it makes one wonder how many Christians actually march to the heavenly drum! Up until our last elections, it has been the ANC and DA as number one and two parties respectively.

Those results are quite perplexing, considering that about 70% of the population claims to be Christian. Why is this perplexing? Well, if one looks at the South African Voter's Guide, it becomes clear that these two parties stand antithetically opposed to Biblical Christian values.

savotersguide In all of life, Christians are admonished by the Scriptures to obey God. Why is it that they think it would be acceptable to disobey when they vote in elections?

Christians simply do not not have the luxury of making up their "own minds" on issues that have been clearly spelt out in the Scriptures. That is on any issue in life. Yet, it is true that the Scriptures do not tell us who to vote for. However, that does not give us an escape route to vote for parties that do not stand on the Lord's side!

In making up our minds who to vote for, there should be a clear procession of thought on the issues. As Christians, our decision must be guided by clear Biblical mandate first. That means, where the Bible speaks clearly, we have to follow. If the Bible is clear on the issue of murder, we cannot vote for a party that supports abortion, ala ANC and DA. The Bible is clear on murder. You get the point! Therefore, Biblical moral issues must be adhered to first in our decision before any other issues that are based on conscience or expediency.

So, issues such as abortion, pornography, homosexuality, prostitution and the like must take precedence in your decision who to vote for. The Bible is clear on these issues. There are clear commands and Biblical doctrine on each of these issues and other moral issues. As a result, issues of conscience, on which the Bible has no clear teaching, must play second fiddle to moral issues. Even more so, issues of expediency such as simple economic issues.

If Christians do not use their votes towards establishing Biblically righteous government, they are indeed using their votes towards evil. And, perpetuating evil in this way is clear disobedience against the clear statutes of God. "Without virtue, a society can be ruled only by fear, a truth that tyrants understand all too well."1 Already, the ANC is planning to amend the South African Constitution if they win a two-thirds majority.

Voting by a Christian must result in a better country with justice for all. A better country can only be seen as a righteous country. It does not have to be a country where all its citizens are Christians, but it will be a country where the people understand what is right and what is wrong, and where the law and its application brings true justice for all.

There are many Christians that vote for both the ANC and DA. They vote for the ANC as the so-called liberators from apartheid, and others vote for the DA as a so-called strong opposition to the ANC. With the upcoming elections, there will also be the breakaway party, COPE. When you look at the SA Voter's Guide, you will realise that COPE's policies are exactly the same as that of the ANC. In fact, of the 8 issues in the guide, the ANC and COPE get 0/8 and the DA get 2½. The ½ of the DA here is only because of stated policy, disregarding their poor voting record in parliament.

Remember, voting is a Christian duty. In a democracy, your vote can actually effect change. Your vote can move this country closer towards justice and righteous government. Don't throw that vote away by denying a party perhaps just that one vote it needs to have someone put into parliament. Further, don't waste your vote on the memories of so-called past liberation or on the promise of so-called strong opposition, especially when both of these sides stand for very much the same when it comes to moral issues.

Let your vote count towards righteous government, and vote for a Christian party such as the ACDP or CDA.

Christian, do not support and perpetuate immorality by giving your vote to parties that do the same! Do not vote through fear, but rather let your vote reinforce Christian Biblical values!

Notes

1. Colson, Charles and Pearcey, Nancy, How Now Shall We Live?, Tyndale House Publishers, Wheaton, Illinois, 1999, p373.

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Wednesday, March 25, 2009

Taxation for welfare benefits leads to the decline of freedom

"The free bread of Rome has long been listed as a contributor to its decline as a nation and demise as a republic. Its vast systems of social welfare did not strengthen the poor, but in fact made them more apathetic and indolent. It also divided the people, with the working class resenting the poor because of the inevitable abuse of such systems. The early Roman republic, as it rose to prominence centuries before the first Emperor or Christ, depended entirely on free will contributions within a mutual network of voluntary care of their needy."

"The alternative to taxing your neighbor is charity. What a revolutionary idea in a world that has decided it is okay to covet their neighbor's goods through the agency of the governments they create!"

"If we are to be a free nation we must turn ourselves around and seek those forgotten principles of a once-great nation that is comprised of honest hardworking men and women who cared as much about their neighbors as they did themselves. From Abraham and Moses to Jesus Christ down through today, the message has been to love your neighbor as yourself, and not force him to contribute to your welfare, or the welfare of anyone else, no matter how deserving the cause. If a contribution is not by choice, it is not charity."

Read more of "The Decline of Freedom" by Gregory Williams.

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