Joe's Air Blog

An occasional Brain Dump, from the creator of Joe's SeaBlog

Monday, November 21, 2005

No free ride

I had a brief debate about taxes, a couple of weeks ago, over at Words Matter with a guy named "Keepmo'money". Keepmo' was commenting in response to Jim's post about a speech made by Warren Buffet. In the speech, Buffet (one of the world's wealthiest men, and the man who brought you Geico) advocated against the type of tax structure favored by George W. Bush.

In response, Keepmo'money stated that taxes are "stealing," and even went so far as to compare the government's self-imposed power to tax with decisions made by the Nazis. He also succinctly stated that "Liberals justify this system of stealing by giving all the good things that are done with the money. It still is stealing."

Now, obviously this guy is an idiot and doesn't really justify your or my attention. However, he does express a mindset that I've heard from others: "why should I give my money to the government?" I've earned it, it's rightfully mine, and the government is stealing from me.

The simple answer is that it's not your money. By this I mean that you are paying the government to provide you with services. Just as you would consider failing to pay someone who landscaped your yard "theft of services", failure to pay taxes can be considered theft of services. Let's think of some examples.

Here's one: as soon as Keepmo' puts the wheels of his SUV onto the pavement of a public way, he owes the government some money. The government built the road and maintains the road. If it were a private road (i.e. not supported by tax money), he would most likely have to pay a toll. Tolls are another form of taxes. The less tax money that goes toward road construction and maintenance, the more toll money gets charged. So far, we're not saving any money. In addition, to be truly "fair," every road would have a toll, so that just those using each particular road are paying for it. Would this be a better system?

Here's another: education. Currently a whole lot of our tax dollars go to support public education. What would happen if we didn't pay taxes? Well, we already know the answer to this one, because we already have private schools that don't receive tax support. These private schools charge tuition. In a "tax-free" world, tuition is another form of tax.

So far, we're not keeping any mo' money.

How about safety: police and fire? These services are paid for by tax dollars. Are we supposed to pay for our own police and fire protection, like we do insurance? If we don't pay, we don't get coverage?

"I'm sorry that your uncle got shot, but he discontinued police coverage last year, so we're not going after the killer."

"Wait, what's the address of the fire? 32 Main? No coverage, let 'er burn!"

Or maybe they send you a bill. "OK, we sent over two tankers and a ladder. You got your hourly charge for the trucks, plus mileage to and from the station. We had ten men on the scene, and since it was a Sunday they get double-time . . . . ."

And just think of the fines for speeding!

This is obviously absurd, but it illustrates a point. Government provides services that benefit the public good. Education, safety, infrastructure. And in most cases, they provide them much more efficiently than a fragmented, privatized provider system would. How about national security and defense? Most conservatives consider these worthwhile endeavors. How do you suppose we would pay for these without taxes? We live in a capatilist society, people aren't going to volunteer to put their lives on the line, and defense contractors aren't going to build bombers and simply hand them over to the military, free of charge.

Maybe we could all just pay some of our own money into a pool, and we'll use that pool of money to pay for the bombers. Oops! That's a tax, just like the government does.

Unfortunately, Keepmo'money doesn't leave any contact information, so we just have to hope that he comes back to continue the debate. I suspect that what Keepmo' and most of the other "anti-tax" people really mean is that they don't want their tax money to go to social services, which they usually define as "lazy poor people on welfare." However, I think that it's well documented that government handouts to the well-to-do easily exceed those provided to the poor of this country. Furthermore, I suspect that we get favorable returns from money spent on social services (e.g. productivity gains as a result of adequate health insurance for the workforce), especially as compared to tax breaks to industry that end up in the pockets of the shareholders.

Hopefully I'll have enough time in the coming weeks to further explore some of these concepts. For now, however, I hope that I've demonstrated that there is no such thing as a free ride, and a reduction of taxes doesn't necessarily allow us to "keep more money."

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4 Comments:

At 12:58 AM, Anonymous Anonymous said...

Really - whenever someone starts making comparisons to Nazis (on the Right or Left) you need to figure that they are just nutcases and move on quickly...

That said: The examples you cite are very solid. Through government we pool our resources to allow us to accomplish community tasks and goals much more efficiently than if we tried to piecemeal it. Sounds simple - and it is.

Of course where it gets complicated is coming together on what our community goals are. Recently Alaskan Representative Don Young pushed through funding for the infamous "Bridge to Nowhere". Priced at $223 Million it would have connected an island of 50 people to a town of 8,000. Worthwhile? I don't think so.

At the same time citizens also have differing ideas about the value of "soft" services. Especially those that are redistribution of wealth rather than actual services. Worthwhile? People often determine which are valuable - and which aren't based on the likelyhood they will need them.

 
At 12:25 PM, Blogger Joe said...

Well, I know that this guy doesn't really deserve to be engaged, but I know he's not the only one out there. I used to work with a guy who would have preferred to own his own plow truck and plow the snow on the roads he was using, than to pay taxes.

The funny thing about that bridge is that the people on the island don't even care if it's built. They are OK with their 5 minute ferry ride.

I hope to have a series of posts in the coming weeks about some of these "soft" services. Trying to balance the cost of health insurance, for example, vs. the cost of lost productivity due to unhealthy workers. That sort of thing.

The area where it will most likely get dicey (at least in your estimation, I'm sure), is when I start to talk about how corporations should pay higher taxes when their "bottom line" decisions contribute to an underemployed and underinsured populace that requires increasing governmental services.

 
At 10:05 PM, Anonymous Anonymous said...

Heh - Been a long while since I was called a liberal - but I'll consider the source.

As for the "my money" argument? I agree that it's my money being spent - I don't begrudge it, but I do attempt to insist that it be spent wisely.

Soft services? The United States has become more and more economically isolated. To me the legacy of government provided housing (Projects etc.), has resulted in "economic cleansing" which progressed through the latter half of the 20th Century. The unintended consequences can be quite pernicious.

As for Corporate taxes? I will say this: I get concerned when laws are passed trying to direct business policy. Should corporate taxation be driven by Congress or anyone attempting to divine the intent of business decisions? The most recent embarassment has been the idea of oil company "ill-gotten" gains from the run up in oil prices.

 
At 7:41 AM, Blogger Joe said...

Keepmo' - it's not about votes, it's about being a human being and realizing that we're better off as a society when everybody is taken care of. I'll remind you that every revolution in human history was the result of those in power unfairly oppressing those without wealth and power.

And I still have yet to hear how you're going to build your roads, but I guess you would rather spout rhetoric than ideas. That's OK, I've been accused of the same in the past.

Demos: I can see where you're coming from in your last argument, but I don't fully agree. The government has every right to pass laws with the attempt to direct business policy, if it is in the best interests of the population to do so. Anti-pollution laws are a good current example, usury regulations go further back.

And I agree that businesses should be permitted to charge whatever they wish for their products in a free market economy. Unfortunately, we have a situation where the government has relaxed antitrust regulations and allowed the industry to consolidate to the point that there is no true "free market" when it comes to oil. We also have a government whose policies have, for the last century, been aimed toward making ours an oil-based economy. We also have a government that recently agreed to multi-billion dollar subsidies for the mega-profitable oil industry. The oil industry has richly profited from all of these policy decisions made by the federal government. It needs to be a two-way street, however. The oil industry is beholden to the feds for it's wealth, it needs to be responsive when the government suggest they dial things back a bit. Otherwise they risk more severe government action like increased regulation and, perhaps, deconsolidation.

It's like that old Fram oil filters commercial - you can pay me now, or pay him later.

 

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