Lessons They Don’t Teach You in School: The Rules of Tax
Unpacking the hidden rules of wealth, taxes, and inequality—and how they shape our lives.
The Rules of Tax: A Rigged Game
Navigating the tax system is like playing a game where those who understand the rules can thrive, while everyone else is left to pick up the tab. Legally minimizing taxes isn’t just about saving money—it’s one of the most overlooked strategies for building lasting wealth and financial security. Yet, the game is far from fair, and the stakes have never been higher.
As Naval Ravikant observed, “Technology democratizes consumption but consolidates production. The best person at anything in the world gets to do it for everyone.” Similarly, the global financial system consolidates wealth and power in the hands of those who understand its intricacies. A select few have mastered the rules of tax avoidance, leveraging legal frameworks and financial secrecy to hide and protect their wealth. Meanwhile, the rest of us are left navigating a system that seems purpose-built to limit our mobility.
The Panama Papers: Tax Loopholes Exposed
In 2016, the Panama Papers revealed the staggering extent to which ultra-wealthy individuals, corporations, and groups exploit the tax system. This massive leak from the Panamanian law firm Mossack Fonseca exposed how trusts, shell companies, and international loopholes are used to avoid taxes, often entirely. These methods, though legal, exploit gaps in global financial systems, concealing fortunes behind layers of secrecy. The personal costs of uncovering such corruption were starkly demonstrated when journalist Daphne Caruana Galizia, who investigated corruption tied to the Panama Papers, was assassinated in car bomb attack in 2017—a grim reminder of the lengths to which power will go to protect itself. Echoes of Boeing’s turbulence, "Boeing faces 10 more whistleblowers after two die and pressure mounts on manufacturer: People’s lives are at stake" (Sky News).
The Tax Justice Network estimates that globally "half a trillion dollars in revenue is lost every year to cross-border tax abuse."
$500,000,000,000. Every year.
This enormous figure underscores how tax systems are designed to favour those with the resources to manipulate them. Multinational corporations and the ultra-wealthy use their lobbying power to preserve financial secrecy and maintain loopholes. This undermines public services, widens the wealth gap, and erodes trust in institutions. For most people, the tax system isn’t a game they can win—it’s one where the odds are perpetually stacked against them.
Privitised Gains, Socialised Risk: 2008’s Lesson.
The ethos of "privatised gains and socialised risk" became painfully clear during the 2008 Global Financial Crisis. Financial institutions, emboldened by the knowledge that they were “too big to fail,” engaged in reckless behaviour that ultimately triggered an economic meltdown. When the system collapsed, governments stepped in to bail out the banks, funnelling taxpayer money into institutions that had created the crisis in the first place. Ordinary citizens were left to bear the brunt of the fallout—losing homes, jobs, and savings—while those responsible largely walked away unscathed.
This glaring imbalance in accountability sparked outrage and disillusionment in all Western societies, fuelling movements that spawned not long afterward like Occupy Wall Street, Black Lives Matter, the MeToo Movement, and Extinction Rebellion.
Each of these movements, though different in focus, arose from a shared sense of systemic failure—a recognition that the structures meant to serve the public had instead been captured by elite interests.
For many, the crisis was a watershed moment, laying bare the reality of a hierarchy where governments prioritised corporate interests over the well-being of their citizens. The fallout wasn’t just economic; it was deeply social, shaking faith in institutions to its core. The social contract had been broken.
The Rise of Technocratic Authoritarianism
The growing consolidation of wealth and power reflects a deeper shift in societal structures. Increasingly, the global financial system operates in ways that marginalize the individual, subordinating them to larger forces. In China, this manifests as CCP > Business > Individual, where the state wields absolute authority, reducing individuals to mere cogs in a collective machine. In the United States, where the structure was ideally God > Family > Individual, it has morphed into Business > Government > Individual. Corporate interests often overshadow governmental oversight and public welfare, effectively relegating the individual to the bottom of the hierarchy in both systems.
The American trucker protests illustrated how this control has been consolidated, with systems openly used as tools against political dissent. The weaponisation of logistics and financial restrictions against individuals and groups showcased the collaborative power of corporations and governments to suppress opposition under the guise of maintaining order. These events serve as stark reminders of the increasingly precarious position of the individual in modern power structures.
This trajectory edges the world closer to a form of techno-authoritarianism, where financial and technological systems centralise control in the hands of a few. Those who master the rules of wealth and tax wield disproportionate power, while the majority are left to navigate an increasingly constrained and inequitable landscape. It reflects a selective integration of Marxist critique—not its call for revolution, but its recognition of systemic imbalances.
However, this adoption remains incomplete, ignoring broader ideological tenets like the belief that individuals are blank slates shaped entirely by society (which they demonstrably are not). In doing so, our culture has critiqued inequality without fully addressing its roots or consequences.
Learn the Rules, Change the Game.
The tax system may feel rigged, but understanding its rules isn’t just about saving money—it’s about recognising how power operates and how it’s maintained. The system is designed to serve those who know how to exploit it, while leaving the rest to cover the costs.
By learning the rules and leveraging available tools—whether it’s hiring a professional or understanding deductions and retirement accounts—you can reduce your financial vulnerability and reclaim control. Empower yourself by treating taxes as a game where strategy counts, because the question isn’t whether the game is rigged—it’s whether you’re willing to learn how it’s played.