Many people have heard the phrase, "Tax Justice," but few know what it exactly means. It’s important to define it, mainly because there are a number of groups claiming to favor "tax justice" but, in reality, what they really want to do is to increase taxes on successful people and then transfer their resources to the state.

One such organization is called the "Tax Justice Network." Most of the leaders of the TJN are either Fabian Socialists or they have been closely associated with socialist groups throughout the world. Ironically, this group recently held just held a briefing for congressional members and their staffs. Of note, the TJN is strongly opposed to any kind of tax competition between governments and has a "manifesto for tax justice," with the eventual goal of increasing world tax revenue.

In nearly every serious study of global taxation, the conclusion has been that tax rates in nearly every country are above the welfare and revenue-maximizing rates, and that the size of government in most countries is well above the growth-maximizing level. Therefore, how can increases in government tax revenue be "just" if it does more harm than good in most places?

The originators of the "tax justice manifesto" intend"to eliminate cross-border tax evasion and limit the scope for tax avoidance, so that large corporations and wealthy individuals pay tax in line with their ability to do so." They also have a desire to increase corporation tax rates worldwide and taxes on the "wealthy" as part of their anti tax competition and tax harmonization proposals.

When perusing through their program, you may become eager to learn more about how little they know of real world economics and how little they regard individual liberty.

To begin with, the TJN doesn’t seem to recognize that corporations are merely a legal form of conducting business, and that taxing a corporation means the tax is paid by consumers through higher prices, by workers through lower wages and by shareholders through lower returns. In today’s world, workers' pension funds often are the major owners of many large corporations. So, it’s hard to see how increased consumer prices, lower workers' wages, and diminished returns to pensioners could be considered just. Corporations legally trying to minimize their tax bills are responsible and just to their customers, workers and shareholders, while the unfair players are the governments with punishing tax rates driving their citizens to seek legal relief.

The notion of "ability to pay" also conflicts with the standard definition of justice. For example, a very wealthy man like Bill Gates could pay 99% of his income in tax and still manage to live quite comfortably, but would that be just? No, it wouldn’t.

The manifesto also aims to "remove the tax and secrecy incentives that encourage the outward flow of investment capital from countries most in need of economic development." Once again, the authors are missing the basic point. Whenever capital is punished or treated unjustly, it flows from countries that are punishing it and gravitates toward countries that treat capital well. The successful developing countries learned that if they protect property rights, follow the rule of law and have reasonable tax and regulatory regimes, they attract all the capital that they can use productively. And this benefits their citizens

The writers of the manifesto also want to "prevent the further privatization and degradation of public services." Sad to say, these so-called "tax justice" advocates are missing the undeniable fact that socialism has failed everywhere it has been tried. Political pressure that has developed around the world favoring privatization has happened because public services, when under government ownership, degraded. And it is not "just" forcing people to suffer inferior government services when the private sector provides better services, and at lower cost.

Another demand made by TJN is globally financial information-sharing between "all states and territories." Once again, the basic queries asked are: How is it "just" to deny financial privacy to people and their legal entities? How is it "just" to share sensitive financial information with governments that terrorize or act criminally or with governments that are either so incompetent, corrupt or both that they cannot safeguard sensitive information?

The most bizarre proposal made by TJN is for an international welfare program for people living in low-tax jurisdictions who have lost their jobs and are impoverished by the much higher taxes of the "new world order tax justice" people and their allies. In spite of the high-sounding rhetoric, the only thing the Tax Justice Network is simply a collection of socialist-know-nothings whose policies, if they should ever be enacted, would destroy economic growth, financial privacy, civil society and individual liberty.

True tax justice does not penalize hard-working people or people working longer to produce needed and desired goods and services. And true tax justice would never double-tax those who are saving responsibly and investing productively.

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