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Benjamin Franklin said, “Of two things you can be certain: death and taxes.” What was true in the 18th century is somewhat less so in 21st century America, at least where taxes are concerned. On this day, April 15, when most Americans are either submitting their annual tax returns or struggling to request extensions of the deadline, it is appropriate to consider the current state of taxation. It is widely reported that 47 percent of Americans pay no federal income tax, a number that has increased dramatically under the Bush and Obama presidencies. Yes, the members of this 47 percent remain subject to withholding for Social Security (pension) and Medicare (post-retirement health care) contributions, but they are exempt from personal income taxes. This obviously increases the burden on those who do pay taxes, but a far more important consequence is the establishment of a more or less permanent class of people who feel free to demand ever-more generous services from government knowing that someone else will pick up the tab. As a people we have already grown used to fighting wars in which other people will serve and die in our place, and we now have a society in which the demand for services is increasingly disconnected from any notion of responsibility to pay for them. This can’t help but erode the notion of what it means to be a citizen. [click to continue…]
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Yesterday I listened to an interview on National Public Radio with David Kaplan, editorial director of an organization called the Center for Public Integrity, which has just come out with a report on the illegal trade in tobacco which, according to Mr. Kaplan, is the world’s most-smuggled legal product.
It’s a fascinating story of a trade worth as much as $100 billion annually – representing an estimated 12 percent of total cigarette sales – with a global reach and organizational sophistication worthy of any multinational corporation or illegal drug cartel. [click to continue…]
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Last week Americans all over the country, some dressed in 18th century costume, staged re-enactments of the Boston Tea Party, the 1773 tax revolt that was a key event leading up to the 1776 Declaration of Independence and subsequent war for independence from Britain.
The angry rebels, some wearing knee breeches and others sweat pants, and egged on by rabid radio and TV talk show hosts, seem to think that President Obama’s spending plans amount to taxation without representation. This is nonsense. I recall voting in last November’s election, and although not all of my preferred candidates won, I am hardly unrepresented. If I don’t like paying the taxes I do I can always vote in the next election for candidates who share my views. That is what we call democracy. [click to continue…]
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