Friday, October 7, 2011

What justifies taxability?

Most of us reluctantly agree that taxation is a necessary evil to "establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity", but we all disagree about how this is to happen.

Without revenue, a government cannot operate. So a government has a few options to obtain revenue:

-accumulate spoils of war by conquering other nations
-operate revenue-generating businesses
-gather fees for services
-ask for donations
-tax the people

Generally, relying on the spoils of war is dangerous. It means the nation must be in a constant state of expansionist wars. The problem is, you make a lot of enemies by doing that. And when you stop expanding, you implode under your own weight. It's called imperial overstretch. This is what killed Rome. Operating businesses is viewed as an unfair competitive advantage against private businesses who do not have access to the same resources. Fees make government services less accessible to the less financially fortunate. As far as donations are concerned, they are rare and far between, and taxation is just universally reviled.

But still, taxation is the primary means by which governments earn revenue.

So what can government tax, and what justifies taxability?

-Income? -> you've earned it, shouldn't you keep it? The less you earn the less you can spend. The less you can spend, the less businesses you deal with can profit.
-Assets? -> you own them, why does the government deserve a cut of them? What if your assets are not liquid and you have insufficient income to pay the tax? Why should you liquidate your assets?
-Consumption? -> why make every good and service more expensive? What's the reasoning? Who seriously thinks that taxing transactions is a good idea? Following that logic, why not tax lawn sales and kid's lemonade stands too? Why not tax gifts made among friends and family members too?
-Vices? -> who's to say that your booze or tobacco is to be discouraged? Who's got the moral high ground to be able to tell you what you can and cannot do with your own health? Why not tax random crap for no reason... let's say chairs, because sitting for 8 hours per day increases your chances to die of a stroke. "My goodness!? can you imagine a world where chairs are not taxed? Preposterous!"

Never forget that consumer spending is the backbone of the economy. Taking money away from consumers just makes the economy worse. The only thing that makes sense to tax at all, the only thing that is justifiably taxable, is wealth. Yes, wealth. [insert sounds of conservatives collapsing from heart attacks]. Who seriously cares about billionaires? Who seriously feels sorry for them? WHO THE F*CK CARES ABOUT BILLIONAIRES??? They were once called 'nobility'. How 'noble' to profit off your serfs, good Sir. How 'noble' of you to allow me the privilege of toiling away in your fields while you enrich yourself by the sweat of MY brow. You sit on your ass in your fancy office all day while I do the actual grunt work that pays for your kid's third Jaguar. Oh my, what if you couldn't afford the 40-meter yacht and had to settle for the 35-meter one because your tax rate went up a bit? Oh no! Disaster!

It is those that have WAY more than they really need that should bear the entirety of the tax burden, not the poor little bastards already struggling to pay off their f*cking credit cards. Taxing the wealth of the well-heeled would leave more money in the pockets of ordinary people, money that they could use to live better lives, start their OWN businesses and be independent citizens themselves. 

1 comment:

  1. Income tax is not just a "necessary evil," it can be the inherent control on wealth disparity, if it is sharply progressive enough.