Tax Farming

Tax farming is a very descriptive term which is why it is not used publicly by politicians. They are the beneficiaries, the extorters. We are the robbed, the extortees, the victims. It has been going on in England since The Norman Conquest if not earlier. The great thief of our day is Brown, Her Majesty's Chancellor of the Exchequer for far too long and a gross spendthrift. Here are sources which tend to the view that the whole thing was privatization of collection. Mine is that taxation is a system used by politicians to pay various special interest groups, that the over priced projects are not accidents, just ways of increasing the bungs. But read for yourself. Think for yourself. Decide for yourself.

Frederic Bastiat
"When plunder becomes a way of life for a group of men, they create for themselves in the course of time, a legal system that authorises it, and a moral code that glorifies it.”
Thus quoth
Frédéric Bastiat

 

Tax farming - Wikipedia, the free encyclopedia
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Tax farming was originally a Roman practice whereby the burden of tax collection was reassigned by the Roman State to private individuals or groups. In essence, these individuals or groups paid the taxes for a certain area and for a certain period of time and then attempted to cover their outlay by collecting money or salable goods from the people within that area. The system was set up by Gaius Gracchus in 123 BC primarily to increase the efficiency of tax collection within Rome itself but the system quickly spread to the Provinces.

Within the Roman Empire, these private individuals and groups that collected taxes in lieu of the bid they had paid to the state were known as publicani, of whom the best known is probably St. Matthew, a publicanus in the village of Capernaum in the province of Galilee. The system was widely abused, and reforms were enacted by Augustus and Diocletian. Tax farming practices are believed to have contributed to the fall of the Roman empire.

Tax farming is not identical with privatized tax collection, where private individuals or groups collected taxes and give them to the state in return for a fee. Tax farming is speculative, meaning that the private individual or group must invest their own money initially to pay off the tax debt, against the hope of collecting a larger sum subsequently (hence "farming").
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The Wiki can be a splendid source of honest information. This not their best article. Hiding the truth behind plausible generalities is a technique of the first class liar rather than the mere amateur.

 

Tax farming - SourceWatch
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"Tax farming occurred in Egypt, Rome, Great Britain, and Greece. The principle was considered very effective for tax revenue collection but suffered from a tendency of the tax-farmers to abuse the taxpayer for collection. Only when the system included checks and balances for the tax-farmer as well as the taxpayer did the system seem truly successful. The publicani of Rome were known as some of the most abusive tax-farmers. Tax farmers bid at auction for the contract rights to collect a particular tax and was held responsible for any loss. In Egypt taxes for collected very effectively without tax farmers until the Greek Ptolemies set up rule. Under the Ptolemies the tax-farmer watched over the taxpayer and the government tax collector to prevent the scribes from imposing lighter taxes on the poor and unfortunate."
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This reads as more honest than the Wiki.

 


 

Workin' on a tax farm | Crooks and Liars [ 19 Oct 2010  ]
QUOTE

HuffPo's Investigative Fund has come up with a sharp story on the ever-expanding tax lien investment market, which you'll be surprised to know is just another way for Wall Street to gouge American taxpayers. Here are the relevant parts:

Nearly a dozen major banks and hedge funds, anticipating quick profits from homeowners who fall behind on property taxes, are quietly plowing hundreds of millions of dollars into businesses that collect the debts, tack on escalating fees and threaten to foreclose on the homes of those who fail to pay.

The Wall Street investors, which include Bank of America and JPMorgan Chase & Co., have purchased from local governments the right to collect delinquent taxes on several hundred thousand properties, many in distressed housing markets, the Huffington Post Investigative Fund has found. [...]

Some states allow the investors to tack on as much as 18 percent interest and a passel of legal fees and other charges. When property owners fail to make full payment, the investors can sue to foreclose - in some states within as little as six months. [...]

Years ago, the big banks left the buying of tax liens largely to local real estate specialists and small-time investors. These days, banks and hedge funds, stung by the failure of many speculative investments, see tax liens as a relatively safe option that can yield returns of around 7 percent.

Some banks also are packaging tax liens as securities - in a similar way to how unpaid home loans are securitized - and selling them to investors.

So broke local governments, instead of taking the time to collect taxes properly, are essentially forking over people behind on their taxes to Wall Street, where they'll have the lovely choice of paying off their taxes at usurious interest rates or losing their house to the banks that bought their tax liens. This is a great investment for banks since, even in this horrible real estate market, they can make a significant profit from selling someone's home for the relatively low price of paying off one year's worth of property taxes to the government. Either way, it's KA-CHING, KA-CHING, KA-CHING!

For those interested in learning more about how to become a financial vulture, I found this swell how-to video posted by the National Association of Tax Lien Investors. Note the sociopathic disregard for human suffering throughout it:
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HufPo is on the right lines.

 

Errors & omissions, broken links, cock ups, over-emphasis, malice [ real or imaginary ] or whatever; if you find any I am open to comment.
 
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Updated on 06/12/2012 06:28