Oct. 10th,2016: Tyranny of Taxation

“The power to tax, once conceded, has no limits; it continues until it destroys”

“There is no worse tyranny than to force a man to pay for what he does not want merely because you think it is good for him.”

Our libertarian friends may recognize these two wonderful truisms from the hallowed pages of Moon is a Harsh Mistress by Robert Heinlein (TANSLAAFL). Taxation in any form is a penalty for success. Personal Income tax is a penalty for wealth; Corporate Income tax for business; Sales tax for production; Property tax for ownership; Import/Export tax for trade; Inheritance tax is a penalty for taking care of your family; and Gift tax a penalty for charity. All taxes are restrictive, but let us see how bad.

The OMB reported that government expenditures in 2015 were 3.688 trillion dollars. There are approximately 210.747 million people between the ages of 15–64 in this country. In the name of equity everybody should pay the same for the services provided by the government. Therefore in 2015 the tax burden for every citizen in the country was $17,499.

Minimum wage will gross an individual $15,080 a year.

Of course, these figures are only illustrative. In reality not everyone works, not everyone has a minimum wage job, and everyone certainly doesn’t pay the same. But all of these things should be true: everyone should be able to work (if they are able); everyone should at least make minimum wage (but that wage should represent gainful employment); and everyone should pay the same. Enabling the citizens to have these things is part of the necessary functions of government.

That there are absolutely necessary functions of government is also true. There are some things that government must do, that only they can do, and some things that only they should do. The government is responsible for the defense of its citizens from external and internal enemies. The government is responsible for protecting its citizens from each other. The government is responsible for caring for its citizens to the extent that poverty and disease do not destroy society. I believe the government also has the capability to undertake enterprises beyond the scope of any other entity, and that they should.

The dilemma, of course, is how to pay for all these wonderful services without the tyranny of taxation. There is a two fold answer: the Fee System and the Enterprise System.

In the Fee system one pays for exactly those services that one receives thus avoiding unrestricted taxation for endless hidden government expenditure. Mandatory fees must be charged for Administrative costs, Defense costs, Police and Regulatory costs, Emergency Health care costs, and Social Security. Non-mandatory fees should be added for services like Education costs, Expanded Health care costs, and Infrastructure costs. And optional fees offered for Research fees, Art and Cultural endowment, Parks and Recreation, Conservation, and the like. The specific usage for these fees should, at this point, be a matter of speculation and imagination; however, before charging such fees they must be explicitly defined and used for no other purpose. The Fees for government should be universal and reasonable.

In the Enterprise system the government undertakes those projects that only they have reasonable chance of success. These projects should be open to investment by any citizen in the country and yield revenue to both the government (and thereby supplement the fee system) and the citizens that have invested. Projects that may be considered: the restoration of the rail system; expansion of domestic energy production; export of subsidized agriculture products; large scale urban development; and blue-sky projects such as the hyperloop, fusion fuel production, and extraterrestrial resource utilization.

Both these systems, working in concert, would alleviate the need for taxation. However, two things must be done to implement them (beyond careful and exact preparation): the sixteenth amendment to the constitution must be repealed (and replaced); and the National Debt must be paid off.

How to pay off the National Debt will be dealt with tomorrow.

Thank you for your indulgence. I welcome questions and comments. Would God please bless America ?

Paul Joseph Nels Dudley