Controversy


Controversy

For every action there is an equal and opposite reaction. This truth expressed in the vernacular means "For every cloud there is a silver lining".

Savvy investors always keep this in mind and a reader's recent message comparing tax liens to slavery shows how understanding that can help make you rich and make the world a better place at the same time.

The intelligent thought from a reader below seems to contradict a view expressed at this site. This idea and even more can help see how to invest in a more profitable and holistic way.

Recent messages have extolled the virtues of tax liens. See http://www.garyascott.com/articles/700/ and http://www.garyascott.com/articles/701/ This caring and wise reader had a deep view when he wrote:.

Hi Gary...!
 First off...your knowledge and information is fantastic and I just want to       thank you for sharing your experiences and wisdom...!! You are a Great Man    with a kind and loving heart!! I just wanted to pass along my thoughts on Tax       Liens....
 ...As an investment goes, tax liens look like they have a good return on    investment and, the masses would see this as a good way to make    money....but....
 ....I bet people used to think the slave trade was a good investment 200-300       years ago!!
 ....You see, when people invest in tax liens, they are supporting a system  of   leaches and thieves or as some would call them, the government! 
 Anyone who invests in this investment has no soul, no morals and are basically     scavengers that have no sense of right or wrong....they are the same people       that would invest in slavery if they could get away with it!!!
 As you teach...we must invest in what is positive for humanity, not feed off       them!
 Gary...what's worse are the people who teach people how to invest in such       unethical schemes...they are the lowest level of hustler there is.....basically       they indirectly work for the government and are apposed to freedom....they just       want to make a buck at any cost....SHAME ON THEM...!
 Now the uneducated masses would differ from my point of view...they would       say...
 ...yeah this is a great investment...I make a great return and the money goes       to keep the local government going so they can pay for schools, roads, police       etc....what these highly uneducated people don't know is...
 ...that the education system in the US is one of the worst in the world...they       only act as baby sitters so mom and dad can go out like good little tax payers       and feed the system and keep it going, no matter how dysfunctional it is!!
 ...Gary....you, more than anyone, know what level society is playing at and       that the ego of government is destroying freedom more and more every day......
 ....you were the one who said that we should invest and do business to better       mankind...this is what I do...and reading your articles reinforces this way of    "doing life"...but...
 I have to respectfully ask why would you endorse an investment that feeds off    the temporarily challenged people that get slapped with excessive penalties       that go to the incompetent government so they can enforce more control over the    masses and keep them dumb and locked inside their 9 to 5 jail cell...
 Please know that I am a capitalist and believe it is spiritually correct to       make a profit...as much as possible, as long as it betters our fellow man! Is       this your belief as well?
 Again...I think you are a great man and I respect you above most forward    thinking men alive today....that is why I'm writing you this letter....
 ...Please don't give up on being a freedom fighter...! I wish you all the best of success...."

First let me add how wise this reader is to slip in his seemingly opposing view in such a pleasant way. Tomorrow you'll see how some readers are just downright rude which accomplishes nothing.

Second, it is important to know that Merri and I shared these same concerns and looked carefully at these issues before we became involved with tax liens. Our research arrived at a slightly differing view.

We agree that our governmental system is sick. This is a reflection of a sick American society. Excess has taken its toll. We eat excessively. 60% of society is overweight. 20% is obese. Our legal system is full of excessive rules. It's even hard to help a neighbor. (For example last week a young lady ran her car off the road that leads through our farm. We started to help pull out with our tractor and were then correctly told by a another neighbor that if we did so without first reporting this to the police we could be fined $5,000!) Personal debt in the US is excessive. Bankruptcies are at an all time high.

As is always the case, our government merely reflects the state of its people. U.S. federal debt is excessive and just passed 6 trillion dollars! Our national trade balance is excessive and grows worse every quarter. We could go on and on listing the defects of the system, but isn't it better instead to spend our time trying to correct the problem?

If this reader's suggestion is correct that tax liens are bad because they help keep schools, roads and police going, etc. Shall we carry this further? Should we stop making profits as this generates income tax liability? Should we stop shopping since this generates sales tax? Should we stop buying capital assets that might rise in value and generate capital gains tax? Perhaps if we stopped paying any tax this would solve the problem of bad government?

This does not seem like the right solution. Voting against high tax and politicians that overspend, seem better. Realistically this may not work either. There are too many people who do not want to work and want government handouts instead. Yet they get the same vote as the hard working high earning taxpayer.

Is this not the real problem with our system that too many have nots vote to take (via the government) from the rich without giving a darn thing in return? Is not the real slavery born by the hard workers in American society who pay excessive taxes that get distributed via excessive benefits to those who do not work?

Guess which of these voters (hard workers or non workers) are the people who do not pay their property tax? So, if we must have schools and police and roads and if realistically there is going to be property tax is it not fair (and perhaps morally correct) that hard working people who do pay their tax benefit from lending money to those who do not? These non-workers use the schools, the roads and enjoy protection from the police. Should they not pay?

Merri and I however had an even deeper concern (as have many of our readers who we have talked with). What if the delinquent property tax has been caused by some great misfortune? Is it right for us to profit from our neighbor's misery and bad luck. Many (including Merri and me) think not.

If you share this concern, here is what one can do. Create a small business or trust funded by your tax lien profits. Get in touch with each delinquent
and find out why they have not paid their tax. If the delinquency comes from genuine hardship, use the profits from your business to help these people resolve their financial dilemmas.

This approach brings three benefits. It redistributes wealth stolen by non-workers back to those who do work. Second, it does support the system so that it can be fixed and third it gives a way for investors to really help their neighbors who are suffering hardship. This third benefit can go further in correcting our current social ills than most anything else.

Hopefully this gives our wise reader a slightly different view that will help him profit, help his neighbors out of luck and have some profits left over to finance political activism that can bring the change our society needs.

Until next message, good investing!

Gary


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