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The best investment we could ever make | Edoardo Traversa | TEDxUCLouvain


[Music]
look at you you are beautiful
well to be honest some more than others
but that’s ok that’s ok that’s because
you’re different we are all different
we’ve got different faces different
smiles will laugh at different jokes no
wonder that we like different things
some of us like running I don’t like it
some like dancing some even like
Brussels sprouts even if many of us
dislike them yet there is one thing that
we all dislike something that we are all
forced to do but that we would put at
the top of a wish list of things that
should disappear from the face of the
earth and that is paying taxes who likes
paying taxes in this room who wakes up
in the morning saying Paul what a
beautiful day today and filing my tax
return do you know anyone like this well
in this room there is at least one
person who likes paying taxes it’s me
well you’ll think of course he likes
paying taxes he leaves on taxes on other
people taxes he’s a taxable professor in
a tax finance university and a tax
lawyer but I’m not saying that as a tax
professional I’m saying that as a
taxpaying citizen just like you taxes
bring us the best out of our society
taxes are the best investment you and I
could ever make for us for children for
our community but I can still see that
you are not fully
that’s because of three main reasons
irrationality first we’ve gotten
ourselves this irrational tax aversion
we do not like taxes and we do not even
know why I’ll explain you how irrational
this aversion is ignorance we do not
know enough how much taxes contribute to
our peace our wealth our well-being and
finally improvement of course our tax
system are not perfect otherwise I
wouldn’t have a job but we can improve
them we can reform them and I’ll show
you how but first look at that picture
what do you see
some would say a dog no it’s not a dog
because dogs don’t drive this is a
shopping animal the average consumer a
study was made in the u.s. showing that
more than 50% of the people would drive
half an hour at the other side of the
city to buy a television for a nine
percent discount these figures jumped to
seventy five percent if the discount was
granted in the form of a tax rebate and
the most absurd thing even if the value
of the tax rebate was lower than nine
percent actually eight percent so people
would lose money to pay less taxes isn’t
it absurd another example who has in
boats overpriced and unnecessary goods
in a shop just because it was tax-free
we all know that feeling so when it
comes to taxation were completely
rational where does this irrationality
comes from three main reasons history
ideology and inequality that is the
feeling of inequality
history you know him you’ve seen the
cartoon Robin Hood Robin Hood used to
steal tax money from King John to
redistribute it to the poor well I don’t
know if Robin Hood existed but King John
did and his high taxes to that he mainly
used to wage wars in in Britain and on
the continent King John it was one of
the worst Kings
in British history but is remembered
even today because eight hundred years
ago he granted to his people the Grand
Charter a document through which he
reduced his power to impose taxes and
this grand Charter is still part of the
UK Constitution today but how come that
we do not walk around carrying swords or
wearing tight green pants at least not
in public
we do not burn witches or try pigs in a
court but still we see Texas as
threatening as they were in the Middle
Ages that’s because of ideology
we have deep in our minds this motto
more freedom means less taxes less taxes
means more freedom you know him during
the electoral campaign then he won he
said that it was smart not to pay taxes
that money would be squandered by the
government if he did pay well he won on
this anti-tax ideology despite all of
his voters in one way of another
benefitting from tax funded government
services inequality when we see those
scandals like the Panama papers or the
offshore leaks or the lux leaks on the
Swiss leaks or any leaks you want we get
angry
because we have the impression that we
are the only ones paying taxes while the
rich and the powerful do not pay that’s
the impression we get from the media but
what we do not see in the media is that
the vast majority of companies of
individuals pay their taxes
honestly regularly and that contributes
to our piece wealth and well-being peace
let’s imagine for a second
what world without taxes would be let’s
imagine a city imagine streets imagine
parks imagine schools hospitals even
courts prisons fire station police
stations
imagine the people nurses street
cleaners firemen police officers
teachers doctors librarians well in a
tax-free world forget about them they do
not exist would you like to live in such
a world I personally wouldn’t well maybe
some of you would say well at least I
would have my freedom at least I would
have my property if you ever thought of
what property and freedom mean in such a
world empty words abstract concepts
without anyone without any institution
to secure them but taxes do not only
protect us from the worst they also help
us achieve the best in life
thanks to our high taxes we have reached
a level of peace wealth and well-being
that is unmatched in world history peace
have you ever compared the list of the
highest taxed country with the Global
Peace Index I did
these are the most peaceful countries in
the world and look the first five
countries seven out of the first ten 15
out of the first 22 most peaceful
countries in the world are high tax
countries some of you would probably
tell me well Delia they’re peaceful
because they’re rich and then rich
because they have a strong economy
bolstered by the private sector and that
despite high taxes that’s untrue because
taxes they not destroy wealth they
contribute to build it taxes foster
business with taxes government builds a
stable legal framework efficient
infrastructure a reliable financial
system access to credit without them
businesses cannot start let alone grow
taxes foster jobs to not only public
jobs government jobs but also private
jobs because we tax money government
buys huge quantities of services and
goods from private businesses taxes also
foster innovation with tax money
government can make long-term risk
investments that the private sector
would not do because too risky and
sometimes disinvestment yield
beyond the wildest expectations to give
you some example the World Wide Web the
Internet the GPS the microchip even the
Google algorithm was developed thanks to
tax funded research program here in new
Vallon of 20 years ago a federal
research grant funded with tax money
helped researcher developing the first
implementation of the blockchain
technology which today makes the
Internet
secur worldwide would you think that
this money was squandered by the
government I certainly wouldn’t and look
at that country Denmark number one
number one in what Denmark is the
highest taxing country in the world it
is also the happiest country in 2016
Denmark top topped the world happiness
report and many other high-techs
countries figured well in this world
happiness report why because with tax
money we do not only create wealth
we also redistribute it redistributed
contributing to the overall well-being
think about universal health care
universal education programs to help
homeless people culture nature
protection and many other things that
contribute to our well-being so probably
taxes make us much happier than we
thought but we can be happy taxpayer
without having to be naive or passive
our tax system well they need reform
they to a certain extent tax rules look
like they’ve been written with a typing
machine and we are now in the digital
era we need change
we need more equity more transparency
and more participation more equity tax
rules well they’re outdated and
complicated and that creates unfair
advantages for some and undue burdens
for others we need simplification we
need tax rules that are in line with the
development of the economy because we
tend to over tax traditional forms of
wealth like labour and entry
ownership while forgetting the newer one
the other ones we need also more
coordination at the international level
we need more global tax rules
legs domestic to be able to have a
common approach to global phenomenons
like for example cross-border pollution
multinational company international
flows of capital we need more
cooperation in order to increase
transparency we did a lot in the last
year’s as regards international exchange
of information so we are on the good
path and the right path but we have to
continue and we need also transparency
not only as regards how money is spent
we need also transparency as regards
government programs we have to be more
participative we have to be more
collaborative we have to be more
innovative as regards of power our power
as citizen as the state first investor
to re-appropriate ourselves our tax
system so if we get rid of our
irrational tax abortion if we are able
to realize that our taxes contribute to
our peace or wealth and well-being and
if we are able to make the necessary
reforms then we will be able to pay
taxes with more conviction and
conviction is what we need today when we
look at the challenges that lie ahead
global warming rising social
inequalities security threats of all
kinds to name that a few when we look at
those challenging as individuals we may
feel powerless but as we have seen in
history against challenges like
starvation
Wars disease if we pull our energy
together if we pull our creativity
together if we invest in our collective
institutions we are much stronger we are
much strong society but remember there
is no strong society without strong
institutions and there is no strong
institution without proper investment so
maybe changing the world could begin
with paying your taxes and if that does
not make you happy I really don’t know
what will
[Applause]
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