April 10, 2009
Representation without Taxation
By Alan Aronoff
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When beneficiaries of government policy do not sufficiently overlap the payers of those benefits, we have a governing system of representation without taxation. This type of system is not sustainable long term, but history suggests it may persist for some time under the pretext of ‘economic justice’ unless soundly rejected by the American people.
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That’s the result of “progressive” taxation aka “soak the rich”.
The only fair tax is to make it voluntary. If the gooferment provides a service, then it should “tin cup” for donations.
At the very least, if EVERYONE had to pay a 1% tariff on imported goods. That would be “fair”.
As I proposed in page 616 of my book “CHURCH 10●19●62” (http://www.itstartedinchurch.com), a simple modest tariff collection mechanism would require little enforcement:
“Because the Government didn’t want to have a lot of checkers, the value is declared at the border. The tariff is two MILs per 10 ounces of value. The importer declares the value and pays the tariff. To ensure honesty, under estimation triggers a 100% penalty. So because the rate is so low and the penalty so high, importers typically add a zero to the end of the value number. For example, a truck valued of one thousand ounces would be assessed a tax of two ounces. So an importer, to be sure of compliance, would call it ten thousand ounces and pay a tax of twenty ounces. Not very fair, but very easy to administrate.”
We have reached the point where the “takers” outnumber the “producers”. We’ll we now see the diminished incentives lead to decreased productivity. Eventually it winds up that we look like a Communist country where the underground economy and “just getting by” becomes the national ethic.
Where are the pitchfork and torches?
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