Today, I came across an interesting article published in the Brunei Times about paying corporate taxes. Full story can be read on the following.
I honestly applaud the minister initiative on introducing a new guidelines in giving local companies a fair chance of participation in the oil and gas industries. However, I do not quite agree on his views about corporate taxes and its relationship to our government incomes.
First let me asked you this question, where did you get your money? Unless you inherited it, you obtained your money by working for a business. It either was your business or someone else’s business. If you inherited your money, your parents or other benefactor worked for a business to obtain their money.
Whichever scenario is appropriate to your situation, the money you received came from a business, and that money is part of what was left over after the business paid its bills — including its taxes.
As with so many arguments about economics, the corporate tax discussion devolves to a discussion of Monetary Sovereign. If you understand Monetary Sovereignty, you know that corporate taxes take money out of your pocket and slow the economy.
To me, we simply should eliminate the corporate tax and allow the Brunei dollars to go into the economy rather than to disappear as tax payments. Our government does not need or use tax money, so why do we want corporations to undergo that added expense?
In short, business is the goose from which we all receive our golden eggs. Taxing business is like stealing the goose’s grain, then cooking the goose.
