Tax Evasion Is Our Government's Fault!

by Mario Kaiser
updated July 23, 2022

First off, I think the Paradise Papers are are marvellous feat of investigative journalism. I think it's awesome to live in a world where not only the rich and powerful get together and devise global schemes to get even richer, but journalists do the same thing, get together by the hundreds and work through millions of documents to expose those schemes.

The contents of these papers tell hideous stories of course, but they don't really come as a suprise. The exact methods might have been unknown, but that rich people don't pay a lot of taxes isn't really a surprise. And that they're in cahoots with the law and politics to perpetuate that system isn't either.

Companies might make revenue across twenty countries, but they pay taxes mostly in one. Naturally, they will move to the country with the lowest taxes. And you can't even blame 'em, it's what they do, it makes sense for them. I think the problem isn't with companies or the tax havens, but our governments: they make the rules for companies to operate in.

If Apple for example is earning hundreds of millions here in Germany, but only pays a few thousand of taxes in Ireland – what can we do, as Germans, against the Irish tax laws? Right, we can't do shit about it. And luckily, we don't have to: all we need to change is our local tax laws. We could simply change the way companies pay taxes here.

We could change it to a system where a company's taxes aren't based on its earnings, but on its revenue. If a company pays taxes as soon as it earns money somewhere, it doesn't matter one bit where it has its headquarters. All we would have to do is change our tax laws; and small companies, which are already paying their taxes, wouldn't object as long as just the type of tax they're paying changes and not the amount.

Our governments could have and should have fixed this decades ago. It's well about time.