I don’t think your post really addresses the core issue of what constitutes ‘taxable’ in the first place, which is where most of the avoidance occurs at higher levels, especially in corporate finance/accounting departments.
I’d be interested in your assessment of this underlying tax policy issue, avoidance strategies at the high-end. And I would dispute your assertion that ‘real tax’ is distributed fairly.
Substantial wealth is accrued by corporations and HNW-individuals without officially reporting the YOY differences as wealth as income or even as gains. In particular, numbers associated with offshore tax havens are unacceptably large at a time when public budgets everywhere are under duress.
So again, I’d be interested in a fair debate on this. My view is, I think taxes can be lower, and one of the mechanisms for reducing tax rates in a responsible way would be to reform the tax system to reduce avoidance at the high-end. Hard to understand why anybody would disagree.
