What I am about to say is not very “politically correct” and will not be popular with the majority. Please also note, that this is an overview and I am aware that it doesn’t cover several points, but, it is a foundation on which to build:
Both the Conservative and Labour parties are saying that they will dramatically change the non-dom rules if elected.
Apparently, they pay too little tax and the system is “unfair”.
Indeed, there seems to be a belief that not just non-doms, but anyone who is rich, simply got lucky or has somehow created wealth by not paying taxes or through nefarious means.
And this is the most dangerous lie being propagated right now. Why? Because it plays to the lazy conviction of the majority and as Nietzsche pointed out “Convictions are a greater enemy of truth than lies”.
So, how do people become wealthy?
Some inherit their money and some win the lottery. Meanwhile, most actually work rather hard and make sacrifices that are not obvious to onlookers, e.g. they don’t see their families and friends much, miss big occasions, their health suffers and then they are often lambasted for their success – even by their own family!
This is ironic because “We have a system that increasingly taxes work and subsidizes nonwork.” Milton Friedman
And as someone else (I can’t remember who), once said “There is always someone paying too little tax and it is always someone else.”
Roger Federer recently admitted that he got very frustrated as a player when people said to him that he made it look so easy and that he was lucky to have such natural talent. While these were meant as compliments, he said that it was annoying because:
“Most of the time, it’s not about having a gift. It’s about having grit.”
Unfortunately, grit is in short supply amongst western politicians. They invariably take the easy route in a bid to win votes rather than tell the truth which may be unpopular but will be far more beneficial in the long run.
Don’t worry, I am not naïve enough to think that this will change overnight, but we should be applauding those who make money and attracting those who want to work hard, take risks, deal with failure and make the sacrifices that create significant wealth.
This is why alienating non-doms or any immigrant who is willing to work hard and make a positive contribution is madness. Where they come from is irrelevant. It is their attitude that matters. This is true for absolutely everyone on the planet. Ask any employer.
So, rather than create a discourse about how the rich are somehow immoral, would it not be more productive to show people how to make more money? Yes, one does have to work hard, be resilient and pick oneself up after the invariable knocks and bumps along the way, but it is possible.
Now this may sound rather rich (excuse the pun) coming from someone who was educated at Eton and has had every start in life I could ask for. But my father was a self-made man. And the point is that the circumstances into which you are born are just the starting point – they don’t define you.
Yes, it is much harder for some than others (and being born into a wealthy family comes with it’s issues too, hence the observation that families often go from rags to riches to rags in three generations. For the record, I’ll take the start I had every day of the week).
But there is an extraordinary pool of talent in this country that is being let down by the messages they are receiving from politicians, unions and sadly many teachers at schools and universities.
Making money is not evil. As charities often remind us: “If you give someone a fish you feed them for a day, but if you show them how to fish you feed them for life”.
So, instead of suggesting that government is the safety net (although it absolutely should be for those who really can’t fend for themselves), let’s show people that becoming wealthy is good, that it is possible no matter your background – the majority of people in the Forbes 500 are self-made or started with relatively small sums of money so they are not the exception as conventional wisdom would have you believe – and then give them the encouragement and framework to do so.
Of course, most people won’t become billionaires or even millionaires, but I have no doubt that those who want to, will vastly improve their circumstances rather than being fed drivel about how being wealthy means that one is somehow immoral or a cheat.
So, it is essential that we continue to keep the brightest British talent while attracting the best talent from abroad by fostering a system that allows individuals and businesses to blossom while rewarding them for their hard work, resilience, sacrifice and intelligence.
Money can move across jurisdictions quicker than ever before. If we alienate the people who make it and the businesses that generate jobs, then we will all be much poorer for it.
Remember governments don’t create wealth. They merely redistribute it and they do that very, very badly…
