With US Republican presidential candidate Mitt Romney admitting that on his $42 million annual income he pays about 15% tax only while those struggling on part time or any low paid job pay much more than, it is not surprising to read in the NZ media and in the internet concerns about inequality.

Inequality is growing rampant in all societies and the OECD has commented that such is the hallmark of poorly functioning economies.

Inequality is not only a result of poor economies, but of greed.

Those in control of companies or governments see nothing wrong in rewarding themselves highly irrespective of their failures, or incompetence. They are in charge and they have the power to provide for themselves, blow the ethics and anybody else.

The private equity caper is an example of grabbing something for nothing. A well known company in Britain, controlled by an individual, borrowed about $770 million from banks and the person in charge promptly paid himself a $500 million dividend leaving the company to pay the debt interest and debt off through trading. After a time, it couldn't and was forced to seek a buyer or go bankrupt putting thousands out of paid employment. This happens regularly it seems. The owner keeps his self declared dividend.

Then there are the Private Finance Initiatives and investment banking.

They don't pay the tax we do

If only these people paid the same tax as everyone else, but they don't seem to. By manipulations, they can park income in tax havens while still enjoying the security which ordinary taxpayers provide for them.

Corporations involved in the African continent are said to have avoided billions in local taxation by legal financial manipulations having their businesses in tax havens. It has been estimated that the aid given by western nations, i.e. the ordinary taxpayers, covers some, but not all, of the shortfall of African governments.

The City of London is a financial district which is like a god to British political parties. In a secular simile, politicians pray to those in it and are prey to their wishes.

It is happening in English soccer where teams, or the companies controlling them, are being bought like commodities as a toy for the financially wealthy. As Rod Lidle in the London Sunday Times
[15-1-12 ] bewailed It is not so much money, per se, that strangles the game of football, as many people glumly aver. It is instead the respect afforded money to the complete exclusion of everything else, the idea that money alone matters, nothing else.

Can there be change ?

How can things change ? At the sound of a possible financial transactions tax, the money people wail in agony, making unsubstantiated claims of all sorts of dire consequences to befall ordinary people.

There is really only one way to start to bring about change, a just and fair society and rewards for success, not just for being in positions of power or knowing the right person.

The financial system a country operates must belong to all. It must be a public utility neither owing allegiance to politicians, business tycoons or any other person wanting to get on a gravy train. Its purpose must be to provide the means of exchange needed for people to live in society - and that's all.

Should the country grow - really grow not book entries - then the excess, or profit, should,be distributed to each person as a national dividend.

That brings us to the next racket -selling of publicly owned assets - and then offering others' property to some who have the cash, or bank overdraft, to buy.

Selling something that belongs to others is theft. Please note, Mr Key.

- Contributed by Colin J. Whitmill, President, NZDSCLMA

Published: January 2012