When candidates propose new and better plans to collect taxes this means no effort will be made to reduce spending. No matter what, the biggest burden of taxation is going to fall on the group with the least political utility to the person proposing the new system of taxation.
Identifying the burden of taxation is not that simple. Half of the people pay no federal income tax so they say. That is only if FICA is not counted as a tax but FICA is a tax. It is said that employers pay half of FICA. That is true if you believe employers don’t pass their half on to employees in the form of lower wages. The rich already pay more than their fair share so you say. Well, the rich get more benefits from the government. In many cases the taxes the rich pay are close to being investments. The rich use government to create, protect and manage markets. The upper echelon of rich could not maintain their status without using government to gain an unfair advantage.
There are a number of truths where taxation is concerned.
1.) More tax revenue generates more spending
2.) Lower taxes generate more spending. People want more of what costs them less.
3.) Taxes keep voters in touch with what government costs.
4.) Higher taxes result in smaller government an in the long run lead to lower taxes.
When a politician comes up with a new idea for collecting taxes, the true message is, “Spending is not coming down but this new tax plan will make the cost of big government less painful for my supporters.”
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