Cheating On Taxes

           The principle from which all taxes derive justification is that they should equally burden people according to their ability to pay. Thus, income taxes are graduated, increasing as income (and ability to pay) goes up. Reasonable sales taxes are not levied on things everyone, rich or poor, must have to survive. And property tax is based on the value of property being taxed. See a pattern here?

           It’s popular these days to claim that graduated income taxes are unfair—that there ought to be a flat income tax rate so everyone is treated the same. In America, sadly, everyone is not treated the same. Lobbyists, often former Congresspersons, are bankrolled by people and organizations of great wealth to “get things into the law” that benefit them. Like minor-sounding exemptions and exclusions that reduce their tax burden or provide other government benefits. Inch by inch, and mile by mile, equal treatment is compromised. That is why the flat income tax idea is a ruse—a geek trick—that lulls unsuspecting voters with specious promises of fairness.

           Around here, the flat tax idea falls flat. It’s something people who hire lobbyists like. There are, however, many important things that fair play requires Congress to get into our tax laws. How about taxing all income the same, whether it was made from work or capital? Maybe closing access to offshore tax havens? Or raising the number of corporations who pay income taxes from 25% to 80%? Why not just stop the cheating?