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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Friday, May 30, 2008

Are Taxes Fair In The United States?

Clearly, given the political posturing, they are not fair. Democrats think that taxes are too low and have promised to raise them. Republicans think that taxes are too high and claim to keep the tax cuts made several years ago. So, clearly, there is a disconnect between these two groups of people.

So what to do? Raising taxes would go against what Republicans think is right and lowering taxes would be devastating to Democrats that have never met a tax that they didn't like.

I think that a perfect solution is create a fair tax. One that is truly fair to everyone. So I propose that taxes are raised on Democrats so that they feel that they are paying their fair share and that taxes are cut on Republicans so that they can can move their pro-growth free market agenda forward.

So, therefore, both groups can be satisfied that tax policy is appropriate.


At 3:11 PM, Anonymous Anonymous said...


At 1:58 AM, Anonymous Anonymous said...

Two Types
There are two types of people in America, producers and parasites. Producers are people who contribute more than they take. They save money, invest it and carry their own weight. Parasites are people who take more than they contribute. They don't save or invest and they believe they are naturally entitled to an equal per capita share of the economic pie.

Conflict of Interest
Most Republicans seem to be producers while most Democrats seem to be parasites. This would explain why Republicans think taxes are too high and Democrats think taxes are too low. Taxes function mainly to circumvent the free market and redistribute wealth more equally per capita. Republicans believe that the free market is fair because it naturally distributes wealth based on the value of one's labor output while Democrats believe that the free market is unfair because it distributes wealth unequally.

A Small Crack
One of the natural flaws of a free market is that the collective incomes of all consumers is never enough to buy all products. This is because consumer income is a factor of production and prices include all costs of production, distribution and profits. This means that, even if consumers spent all of their money, there would still be a surplus of products that never get bought. The surplus has to be exported and sold off to foreign markets, otherwise it acts as a drain on the local economy.

A Preposterous Solution
But if there were no 'foreign' markets- just one global market, the surplus could only be sold off as long as their are consumers who obtain their incomes from outside the market- government employees and unemployed welfare recipients. Like it or not, these parasitic consumers are necessary externalities of any capitalist free market. Not only do they help the free market, they give us an opportunity to reform our monetary system. We can closed the Federal Reserve and mandated 100% reserve banking so that new money is no longer created by bank loans. These consumers can introduce debt-free government issued fiat into the economy. We would NOT want the government issuing money to directly to itself so, a tax would be necessary. But, if the government were restricted to operating within it's budget and all we have is a simple consumption tax (like the Fair Tax), there would be no public debt and the tax rate would be low. Everyone would be about as happy as can be.


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