The 16th Amendment to the Constitution permits government to tax its citizens. “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” Nevertheless, while the government is just in its imposition of taxes to help cover the cost of administration, the levying of taxes has become uncontrolled. Just a sample of the many taxes that a citizen faces that didn’t exist 100 years ago:
Accounts Receivable Tax, Building Permit Tax, Capital Gains Tax, CDL license Tax, Cigarette Tax, Corporate Income Tax, Court Fines (indirect taxes), Dog License Tax, Federal Income Tax, Federal Unemployment Tax (FUTA), Fishing License Tax, Food License Tax, Fuel permit tax, Gasoline Tax, Hunting License Tax, Inheritance Tax Interest expense (tax on the money), Inventory tax IRS Interest Charges (tax on top of tax), IRS Penalties (tax on top of tax), Liquor Tax, Local Income Tax, Luxury Taxes, Marriage License Tax, Medicare Tax, Property Tax, Real Estate Tax, Septic Permit Tax, Service Charge Taxes, Social Security Tax, Road Usage Taxes (Truckers), Sales Taxes, Recreational Vehicle Tax, Road Toll Booth Taxes, School Tax, State Income Tax, State Unemployment Tax (SUTA), Telephone federal excise tax, Telephone federal universal service fee tax, Telephone federal, state and local surcharge taxes, Telephone minimum usage surcharge tax, Telephone recurring and non-recurring charges tax, Telephone state and local tax, Telephone usage charge tax, Toll Bridge Taxes, Toll Tunnel Taxes, Traffic Fines (indirect taxation), Trailer registration tax, Utility Taxes, Vehicle License Registration Tax, Vehicle Sales Tax, Watercraft registration Tax, Well Permit Tax, and Workers Compensation Tax.
There is barely an aspect of a citizen’s life that isn’t infringed upon by the imposition of some tax. While it is important for citizens to realize that their government’s operation is dependent on the paying of taxes, it is also incumbent upon the government to use restraint in levying taxes. The proper use of taxation is to provide for essential services of the state, not to provide the state with an excuse to offer endless services.
The path of government taxation has extended far beyond the provisions and duties of government outlined in the Constitution. The government has increased its spending on programs or increased taxes on certain activities, such as smoking, in order to further a social agenda. The government is overlooking a simple fact on both instances. That fact is individual Liberty must not be unduly inhibited; otherwise the state that exists upon the collection of those individuals will fall.
Just as it is true that when you tax something or some activity you get less of it, so too it is true you cannot tax a populace into prosperity or change behaviors artificially. On the one hand, when something is taxed, such as labor or property, it becomes more expensive to keep that commodity in the marketplace, as the cost associated with the tax amounts to a burden on the laborer or property owner. Ultimately, this cost causes prices to rise as the cost is passed on to the consumer. On the other hand, taxation is the enemy of Liberty. By the imposition of financial barriers, an individual is less free to make decisions for himself. For instance, a raise in the gas tax adds to the already tremendous financial difficulties an individual has to meet the requisites for surviving. With his commute now more costly, and no raise in income to offset the effects of paying a higher tax, the individual is losing economic ground. However, more than just adding to his financial difficulties, an individual is also being restrained in his action. In short, he can’t travel as far as he once did and he now has to alter his behavior to accommodate less freedom. Consequently, while the government has the power to tax, it seldom uses this power correctly, often sacrificing Liberty for good intentions. Therefore, taxation needs to be reduced in order to avoid the mishap of the state overwhelming its citizens, and to let business, ideas, and Liberty prosper.
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