Commentary

Americans pay the price for refusing to be honest about taxes

TaxesCatherine Rampell of the Washington Post has an excellent essay in this morning’s edition of Raleigh’s News & Observer about how the American aversion to taxes has become an irrational and destructive affliction. Not only are we leaving core public structures and services chronically underfunded, we’re skewing our entire political system by turning our public servants into scavengers who must concoct ever-more-elaborate schemes to pay for the services we demand.

“Voters hate taxes and will punish any politician who threatens to raise them (or, in many cases, does not accede to cutting them). But schools, roads, police forces, garbage collection, firefighters, jails and pensions still cost money, even when you cut them back as much as voters will tolerate. So instead of raising taxes, state and municipal governments have resorted to nickel-and-diming constituents through other kinds of piecemeal, non-tax revenue raisers, an outcome that is less transparent, and likely to worsen the economy, inequality and social injustice.

Think of recent, infuriating stories on civil asset forfeiture, in which law enforcement seizes cash and other property from people who are never charged with crimes. Often the departments that do the seizing get to keep the proceeds, which leads to terrible incentives. Officers around the country now attend workshops that offer tips on the best goodies to nab (go for flat-screen TVs, not jewelry).

Forcing cops to remit forfeiture proceeds to the state or local treasury, rather than allowing an eat-what-you-kill policy, might discourage bad behavior to some degree. But at heart, the reason such actions are so commonplace is that government revenue has to come from somewhere, if it ain’t coming from taxes.”

As Rampell goes on to point out, this ridiculous state of affairs is transforming how we fund government from a broadly-shared, democratic enterprise  into a regressive, market-distorting mess. She might’ve also mentioned that it’s helping to transform how we think about government as well. Where once all citizens were stakeholders/owners, we’re now becoming cheapskate bargain hunters looking only to get the best deals for ourselves (e.g. private school vouchers).

Her solution: “It’s time to take off the fiscal blinkers and start rewarding politicians who have the courage to advocate raising revenues the old-fashioned way: through taxes.”

Amen to that.

One Comment


  1. Alan

    November 27, 2014 at 6:13 pm

    If you raise taxes, does that classify you as an “evil-doer”.

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