Thursday, April 8, 2010

Drawing the Tax Line - Or Not

What is a 'limited government' if it can subject you to unlimited taxation?  Is it taxation without representation if a politician today spends money which will be charged to those too young to vote? 
"The Tax Foundation calculates that Tax Freedom Day for 2010 is April 9, which means that by Friday, Americans will have spent nearly 100 days working just to pay their taxes. If Democrats have their way, Tax Freedom Day will keep getting later and later.
Hold that thought. Imagine for a moment that Tax Freedom Day was Dec. 31. In other words, picture working 365 days a year for the government. Now, the government would "give" you a place to sleep, food to eat and clothes to wear, but all your income would really be Washington's income to allocate as it saw fit. Some romantics might call this sort of arrangement "socialism" or "communism." But another perfectly good word for it is "slavery" or, if you prefer, involuntary servitude."
"Reasonable people can of course differ about where a tax rate becomes tyrannical, and we're far from that line in historical terms. But any amount of taxation can be unjust if it is being used for bad reasons, is applied discriminatorily or if it's taken without representation."
"...the top 10% of earners pay more than 70% of the income taxes). If all of President Obama's plans are enacted, that percentage will increase. We are heading toward being a country where instead of the people deciding how much money the government should have, the government decides how much money the people should have."
"There's also the simple fact that taxes impede growth, and low economic growth curtails the pursuit of happiness for everyone. Democrats are increasingly skeptical about this transcendently obvious point because they have convinced themselves that since government is better than the private sector when it comes to spending money wisely, it only makes sense to take money from the dumb private sector and let the smart government sector decide what to do with it. Well, no matter how dumb America's wealth-creators might be, they're smart enough to respond to incentives and disincentives. Indeed, since 1950, no matter where their tax rates have been, from as low as 28% to as high as 91%, the government's take has held at about 19.5% of GDP, suggesting that squeezing taxpayers harder doesn't necessarily yield more juice.
Personally, I have never understood liberalism's blind spot for liberty when it comes to taxation. A 24-hour waiting period before a teenager can have an abortion is an allegedly grotesque violation of individual freedom, but a federal government that takes vast amounts of your money - the means by which you exercise your every freedom - to distribute as it sees fit is "progressive"? The USA Patriot Act, whose threat to privacy was somewhere between entirely theoretical and non-existent for the overwhelming majority of Americans, shocked the liberal conscience. But our income tax system - made idiotically complex by both parties - demands countless hours of preparation and requires law abiding citizens to reveal (and document!) many of their most private decisions to government inspectors every year is "reasonable." Yet many liberals even think complaining about this is a sign of right-wing dementia."
"Again, reasonable people can disagree with where the line between necessary taxation and injustice lies. But the line exists. Tax Freedom Day is going to come later and later, no matter what. Maybe we should figure out now where on the calendar we should mark down that line."
http://blogs.usatoday.com/oped/2010/04/column-how-much-taxation-is-enough.html#more

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