Tag: taxation

Robbery Report 2018: Harmful and Wasteful Tax Spending

Conner Drigotas | @cdrigs44

In 2018 I worked for 2,230.05 hours. An average of 46.46 hours per week for the 48 weeks I worked this year between February 1 and December 31. In the month of January, I was interviewing for the job I started in February.

I track my work hours meticulously. I am required to as part of my job at a law firm, even though I am not a lawyer.

In every hour that I worked this year, the government stole $12.48 from my paycheck. They then used that money to invade foreign countries, build bombs, and pay the salaries of people I do not trust.

Continue reading “Robbery Report 2018: Harmful and Wasteful Tax Spending”

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Bill Weld Announces 2020 Presidential Run

John Keller | @keller4liberty

Former Governor of Massachusetts Bill Weld announced today he is running for president against Donald Trump, hoping to secure the Republican nomination.

Continue reading “Bill Weld Announces 2020 Presidential Run”

Andrew Yang’s UBI Plan is No Breath of Fresh Air

Glenn Verasco | Thailand

If there’s one welfare state proposition that makes Libertarians reconsider their anti-government position, it might be UBI (Universal Basic Income). The concept of UBI is simple: every person in a given country gets cash from the government every month. Rather than rationing food, energy, or clothes like a purely Socialist society, a nation with UBI allows those on the receiving end to decide which of their needs should be met the same way people who earn their own money do.

Continue reading “Andrew Yang’s UBI Plan is No Breath of Fresh Air”

The Least Immoral and Most Effective Tax

Jack Shields | United States

Ben Franklin once said, “In this world, nothing can be said to be certain, except death and taxes.” Indeed, since civilization formed, they have been a part of life. Today, taxes are everywhere: we have income, sales, and estate taxes, tariffs, and many more.

Despite most people thinking they pay enough or more than their share, many are quite happy to raise taxes on others in the name of ‘paying their fair share.’ And now, with the Democrats in control of the House Representatives, Representative Alexandria Ocasio-Cortez is already proposing a top rate of 70% to fund her radical agenda.

Which Form of Taxation is Best?

It is important to note that after the Trump tax cuts, the Feds collected a record amount of revenue. Moreover, the 1% who supposedly don’t pay their fair share already contribute 43% of the collected revenue. Meanwhile, the top 20% contribute 87% of the total income tax revenue. Rightfully, some conservatives and most libertarians despise the current state of high taxes. Because of this, Republican administrations and red states have slashed them when they had the opportunity. But in their noble goal, they have neglected the fairest one of them all. 

When examining which taxation method is best, the valid questions of whether there should there be taxation or should the government be spending this much are irrelevant. As of right now, there is spending and there is taxation. I will give neither justification nor disapproval for either. Rather, I will present the best possible situation in the status quo by examining all possible taxes. Obviously, we may need some other forms of taxation to fund all our spending, but we should still strive towards the most moral system possible.

Property Tax: Immoral and Harmful

Perhaps the most popular alternative method for red states without an income tax, such as Texas, is the Real Property Tax, a tax on real estate. In principle, a property tax may be on any good someone owns, not necessarily just land. This is immoral in principle and detrimental in practice. One of the most important rights an individual can have is the right to property and the fruit of one’s labor.

Placing a tax unrelated to the actual acquiring of such property effectively makes it not your property. Rather, the government owns it and you may rent it as long as you can pay for it. As soon you are unable to, you must give it back up to those who really own it.

If you work your entire life to pay for something, it ought to be yours entirely. When the transaction is complete, the government should not be involved, save cases of illegal misuse and other abnormal instances. No government should allow itself to take property that you worked hard to attain.

Tariffs and the Sales Tax

Among the protectionists of the Republican party such as President Trump, tariffs have been supported. Tariffs, however, act essentially as just another tax against the American people. They make better products cost more and lose us thousands of jobs.

Economically, they are a complete disaster. Free trade, which requires no tariffs, is the best way to improve the lives of Americans. Any economic system which places protecting the worker over pleasing the consumer is doomed to fail, and tariffs are a means by which protectionists hope to achieve their flawed economic system, and they should receive support.

The sales tax is also a popular idea among conservatives and libertarians as a way to get rid of the income tax. On the surface, this is a very appealing option. No income tax. No IRS. Seems quite nice. However, the problem is this is regressive and unfairly impacts the poor.

Take two individuals that live in a city with a 5% sales tax. Person A makes $20,000 a year and Person B makes $100,000. Person A has to spend all of their $20,000, essentially giving them an income tax of 5%. But Person B spends $80,000 of their $100,000, saving the rest. This effectively gives them a rate of 4%, as they pay nothing on what they saved. We should strive for the fairest rate and the regressive sales tax is not the best choice.

Taxes that Unfairly Harm the Rich

Just as we shouldn’t have a system that unfairly harms the poor, we should not have a system that harms the rich. But unfortunately, this idea is quite popular in two very immoral ways. The first of these is the estate tax, perhaps the most immoral one out there. The idea that when someone dies, the government gets to go in and take some of their stuff, is truly horrifying. It is one thing to tax someone as they earn income or are in the middle of a transaction. The idea, though, that a death initiates a need to take from the family is just wrong.

One of the biggest incentives for earning is to care for your family. One of the marks of a truly successful life, at least from an economic perspective, is having your family be financially prosperous because of you, even when you are long gone. The fact that this only targets the richest of the rich is irrelevant when looking at it from a moral perspective. When someone dies, there is no moral reason to go in and take their stuff. 

The Progressive Income Tax

The next favorite policy against the rich is the progressive income tax. The idea, of course, is that as you make more money, you can afford to lose more of your income. There are already a plethora of economic reasons why this is a terrible idea, and Thomas Sowell writes particularly well on the issue. The economic side has already seen lengthy discussion.

However, just as with the estate tax, the immorality of the system has seen little public examination. If an individual obeys the law and earns a sizable income, what right do you have to use the government to steal the money and use it for your own ideas? The idea that these rich people are evil and have no idea how to help people with their money is just wrong. Practically, do you really think Donald Trump and Nancy Pelosi are smarter with money than Bill Gates, who is using his billions to cure AIDS, or LeBron James, who is using his millions to send underprivileged kids to college? Of course not.

Morally, if your neighbor disapproved of the way you spent your money so he took 70% of it and spent it how he wished, we’d call it stealing (rightfully so). When the government does it, it is still stealing and still wrong. The point of taxation is to give the government a stream of revenue to properly execute its powers. If at any point taxation deviates from this goal in the name of any other, it is immoral. Surely, this is the poster child for this immoral practice.

Its Cousin: Sin Taxes

Special taxes against things which present a supposed moral problem such as alcohol or marijuana (sin tax) are essentially the cousin of the progressive income tax and are just as immoral. Taxing something, whether it be a whiskey tax or carbon tax, is just another way to legislate morality. Just like the progressive tax, this deviates from the goal of bringing in revenue.

The Flat Tax: The Most Moral System

With prevalent practical and moral issues with all the taxation methods listed above, the flat income tax stands alone as the most moral tax system. Of course, it is not perfect; any type of taxation is a necessary evil, after all. By definition, necessary evil is still evil. Nevertheless, it solves the moral and practical issues of the other systems.

Unlike the property tax, this only occurs right as you acquire money, and then you’re done. You don’t have to keep paying it every year. Unlike tariffs, it in no way interferes with free trade. Unlike the sales and progressive income taxes, it does not disproportionately affect the rich or poor. It is an equal percentage across the board, making it fair by mathematical law. Unlike the estate tax, it will not immorally take money from a family dealing with the loss of a loved one. And unlike the progressive income or sin taxes, the flat tax does not legislate morality.

If you raise the rate on one group, you have to raise it on all, making rate increases much more difficult and unpopular. This will help to ensure that taxation only funds the government’s enumerated powers. Thus, it will be moral (assuming, of course, that the enumerated powers are moral).

Because it is both moral and practically capable of raising a reasonable amount of revenue; the flat tax is clearly the system conservatives and libertarians should advocate for in their quest to end limitless taxation and government spending. 


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Private Healthcare is a Moral and Pragmatic Necessity

Teagan Fair | United States

The debate about healthcare in America is huge, and both sides have many compelling arguments. However, privatizing as many services as possible appears to be the morally correct choice.

The Moral Argument

The government should not be the ones to provide healthcare for the Amerian people. To understand my ethical side of the argument, we must look at just how this would occur.

The answer to this question is obvious. The government would fund these services using taxpayer money. Of course, taxation in itself is unethical and no more than organized theft. If I were to take your money at gunpoint but use it productively, I still would be a thief. That is the definition of theft: taking somebody’s belongings without their consent.

This makes government, in itself, the biggest and most successful thief in history. They are doing the exact same thing as the previous scenario explains. If you do not give them the money that you rightfully earned, then they will take it by force. Ultimately, they will resort to sending men with guns to collect it or collect you, if you do not comply. Of course, many citizens do not even question this or think twice because society raises us to believe things like ‘taxation is the price you pay to live in a civilized society.’

This is invalid for multiple reasons. First off, the citizens do not consent to money being taken, nor did they sign any ‘social contract’. Sure, the Constitution does mention taxation, but men 250 years ago agreeing upon it does not justify an act of aggression today. Agreement of the founders is not consent.

Second off, government services through taxation might be moral if it was only paid for by those who voluntarily used those services, or personally agreed to pay. However, this is not the case. We are all required to pay these taxes, regardless of whether or not we choose to use them and/or agreed to pay.

Even if I were to take your money and give you something valuable that you may or may not need or want, like medicine, for example, I would still be a thief. This should be no different with government. If the government takes the money of its citizens through coercion and gives them healthcare that they may not even want in exchange, it is still a mass theft. It may be theft that benefits a certain group of people, but this is regardless. Using violence against peaceful people in order to improve the lives of a certain group is wrong. The same moral argument exists for any government service.

The Practical Argument

Now that we have concluded the fact that healthcare through government is unethical, we must ask ourselves whether or not the government’s absence in this field would work as well as its presence. Without a doubt, the absence of the government in healthcare is practically correct and more efficient.

First of all, the private sector provides a greater incentive to work. Government employees tend to receive the same salary regardless of their work input. Those working in the private sector, however, often receive monetary compensation for working harder and more efficiently. When companies directly tie in one’s quality of work with their pay, it gives them an incentive to work harder, helping everyone by accomplishing more.

This general rule holds true for almost all services: the private sector gets the job done better. We see this in many places, including – like our failing public school system or our high number of roads and bridges in poor condition. In many areas, people can widely accept that the private sector ends up being higher quality. The same will apply to healthcare.

Private healthcare also grants patients the luxury of choice. It gives patients the option to choose the doctor they want treating them or the hospital they want to go to. They can choose these things based on the quality of the service provided. The more companies exist, the more options will follow. If one particular company is flawed in some way, perhaps in prices or quality, then they will go out of business. The only options for that company, thus, are changing their ways or closing up. If they fail to change, then perhaps they will lose money or even the building. In its place will come a better company that is more capable to suit the needs of the customers.

Without a doubt, private healthcare is a morally correct idea and also seems to be more efficient This way, we can further attempt to get the government out of the lives of the people while maintaining fairness and quality medical care.


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