While I agree these are services people pay taxes for, Police mostly target the poor, fire departments are stationed closest to the wealthier neighborhoods, emergency services are generally better in wealthier areas, and public transportation in most of the US is generally poor, airline travel being the only thing worse. It's hard to convince someone who isn't of means that raising taxes on them is somehow of benefit to them. We'd be far better forcing companies to pay and freeing up the market for more people to work from home. That would actually solve the congestion issues without punishing the people who can't afford it.
Why don't we talk about raising taxes when we want to raise spending for ("subsidize") the police, or the military? Why does it only seem to be a concern when we're talking about services like public transportation?
Where are people opposed to taxes being used to fund fire departments, and why?
Why don't we see public transportation as one of your "public goods"?
Is it possible those people who you say are so concerned about value are maybe not seeing how they gain from having public transportation for their community, or are they more concerned about someone else deriving more value from a service than they would?
And that's how you tax the poor and the middle-class, and restrict their mobility by not investing in affordable public transportation. (Don't forget that in the US, you are forced to own a vehicle due to the lack of affordable and good public transportation). Taxes aren't meant just for building infrastructures but are also a mean to reduce income inequality and provide opportunities for those neglected or exploited by the society. Taxing the poor or the middle class too much works against this principle. But I guess that's too "socialist" for most Americans.
Personally I think making the rich pay higher taxes is unethical. Everyone should pay a flat income tax.
Why do we pay taxes? We pay taxes so that government can be funded, and in exchange government provides certain public services. Services like firefighters, police, hospitals, etc. If you think about it, these are services that everybody should receive equally, thus they should be services that everyone pays for equally. Currently we have a system where the rich pay a disproportionate amount of the costs for these services, and intentional or otherwise, what has happened is that the rich gain a disproportionately better use of these services, like the police are more likely to protect the rich than the poor, etc.
Bigger houses are more expensive to protect from fires than smaller houses, so real estate taxes should be proportional to the value of the property. Sales tax applies to everyone equally but those who consume more pay for more, which makes sense since those who consume more are making more use out of consumer protection agencies, like the FDA. Bigger companies are more expensive to regulate, so proportional corporate taxes make sense too.
But a human life is a human life. When one person pays more taxes than another person, the implication is that person deserves a larger share of the same essential services we are paying for than those who paid less. That seems a perversion of justice to me.
Whether rich people use roads, public education, or food safety is beside the point. (And, frankly speaking, I'd venture to guess that rich people do use roads more, because poor people are more likely to ride the bus or walk.)
They pay more because, if we taxed everyone at the same rate, we wouldn't have anywhere near enough money we needed to maintain even the somewhat shoddy state of civilization in the country.
You may not like the idea that the government has to pay for all of the things it does, and that's a fair response, but it doesn't really address the bigger picture: what kind of quality of life do we want in this country?
Just to play into the "low taxes for all" thought experiment, say we slash taxes across the board and have to cut a ton of stuff from our budget. Well, I can think of what I'd cut, and I'm sure you can do the same, and I'd bet there's some overlap, and some contention. But how would these cuts make life harder for your average American (who, mind you, is poor and sick and works their ass off week after week for very little wages)? If we don't care about them--if we throw them to the wolves of fate--is this the kind of country we want to live in, one we will take pride in? How would history view us, at the dawn of the 21st century?
And, to be wise students of history, and reflect on how we got here, rather than assume our forebears were idiots who didn't know what they were doing, why do we have the regulations on business that we do? Why do we have food safety? Why do we have regulations on overtime pay? (And whose bright idea was it to exempt IT workers from that?) Why do we have regulations on medicine, or laws that dictate how and where we drive our cars?
I'm not trying to ask a bunch of leading questions. I don't have the answers here. I just think it's useful to think more broadly than "a flat tax is a fair tax is a just tax is the right thing to do", both historically and ethically.
But the issue has been that municipal taxes are a zero-sum game. People expect taxes to stay at a constant level unless they are getting additional services. So allocating more taxes in one place pulls taxes from another.
By not funding retirement immediately, you can keep taxes constant and not diminish current services.
But most importantly, the single-most-explanative reason why we services have gotten more expensive is because of this ignored tsunami of additional costs caused by the proliferation of the automobile.
Lowering taxes is counterproductive, though. The problem is sharing the burden with the wealthier. At some point, you can't really get something for nothing and we have to accept that if we want first-world services and infrastructure, we have to pay for them. And paying for them through taxes is way more efficient than just letting private companies extract their benefits from tolls and such.
If we are to tax people because they benefit from public services, then poor people should be taxed more than rich people since they benefit from those services more.
This is the classic dilemna, everyone wants good public services but low taxes.
The argument is often that either ways should be found to deliver better services for lower cost, or that money should be diverted away from something else instead of a tax raise. Or people want a tax increase for somebody else but not themselves to cover it.
"... better than feeding the bloated government bureaucracies."
I think this is probably the core of most of these disagreements. If you approach taxation with the assumption that it's mostly just money going to waste, then yeah, you're not going to be very supportive of taxation, especially high tax rates for high income, high net-worth people.
But even if you come at it from that point of view, it has to be acknowledged that there are certain kinds of services which are almost impossible to deliver other than via the government. The private sector will not give you healthcare for all, or any meaningful mass transit (much less HSR), or properly maintained roads and bridges, or a military, or any of a thousand other things that your multiple levels of government spend money on. Yes there is some waste due to corruption or bad decisions, but for most people that is an accepted cost to getting the services that can't be had any other way.
I also don't have a problem with taxes. Taxes build our needed infrastructure (here in Seattle we need so much road and mass transit work), they pay for medical care for all of society, services for the poor.
There are a lot of irrational beliefs that come at least in large part from the Republican party; they tell people there is endless waste in the govt and they shouldn't have to pay anything - and rich people should pay always less than they pay now and someday you might be rich so isn't it a good idea to have them pay less taxes.
I'm fortunate to be a well off software engineer, and the state needs to tax people like me more. I would willing pay lots more in taxes if they could build out the freaking light rail quickly, and get gig ethernet to my house (the last thing is less important :-)).
All those places have taxes. Low taxes, but they have them.
What you don't seem to understand is that I am not arguing against taxes themselves. Or even high taxes. Of course I would pay lots of money to partake in civilized society and its services.
What I want is free market competition for how my taxes are spent and those services received. Because with the current monopoly the government has no reason to improve in any way and instead it takes my taxes and uses them as they see fit - mostly to ensure their reelection.
It takes tremendous amounts of money and gives me horrid services. And they have the gall to tell me that this is the only way and I don't need or deserve any other choice! That, in my book, is stealing.
Imagine please that there was a smartphone tax. You'd pay a certain amount a year and you'd get a single, government issued smartphone. Compare that with the current free-market solution. Which one is better, which one would you prefer?
Now apply that thinking to all other government services. That is my whole point.
Your statement, "by spending $1 to provide a service to a group of people, you increase the size of the economy, and consequently the tax base in that area, by more than $1," even if it were true, is too broad: it applies to services which pay for themselves as well as those that don't. It's not an argument for why government should overcharge city folk to pay for services for country folk.
I'm by no means against taxes, I completely agree they're rightfully used to fund roads/police/fire/etc. My primary argument is that the richest government in the history of the world has more important things to prioritize than making the IRS more ruthless against the middle class. And I'm saying that if they end up collecting more tax money, it doesn't necessarily mean it's a net positive for society as a whole. Most of those tax benefits are reaped by big business, so in other words those benefits are reaped by the owners of those big businesses.
The low vs high tax debate is kind of a moot argument anyways since the US govt can pretty much print money as needed...which ends up being an indirect tax on the general public via inflation.
There's a sound argument for levying broad taxes on services that are widely distributed, that you can't easily opt-out of, and that are reasonably beneficial and necessary.
Roads, police, fire fighters, border security, armed forces, environment regulators, etc. I'm certainly open to debating what does and does not fall into this category for fair and acceptable taxation.
But to argue that 'we are taxing your wealth because you have too much' obviously falls outside of that category.
If one’s taxes only went to pay for this small subset of items, I think your argument would be stronger. A 40% marginal tax rate is not earmarked for these essential services, as evidenced by our decaying infrastructure despite the US government bringing in $3.5 trillion in tax receipts in 2019.
The political left has been pretty clear that the aim isn’t solely a focus on essential (and shared) resources, but on increasing the social safety net (either through UBI, single payer, or other mechanisms).
Separate conversation if those are good policies or not, but the argument isn’t that the rich don’t want to pay for police. That’s an incredible straw man.
You argument is based on the idea that taxation is really just another way of paying for services (public transport, policing, etc.). If you accept that premise, than being a flat-taxer makes some degree of sense, but you should also be in favor of huge user fees - if you don't use homelessness shelters or public pools, why should your tax dollars pay for them?
Taxation, as I see it though, is more than that. Sure, you're paying for the fire department, but you're also paying for "civilization", for lack of a better word. You're paying for things like the food stamp program, which (if this question applies to you) you would be nowhere near. It's accepting that in order to have a somewhat decent society for all involved, we need more money than would come if everyone was charged at the same rate, and as such, you charge more to the people who can afford it.
I can think of three reasons, from least to most libertarian:
1) You're proposing a flat dollar amount be paid as tax by every citizen. This will be most painfully felt by the poorest. What sort of society do you think this leads to?
2) The rich do employ a lot of people, whose education and safety were provided for by taxes. Then there's all those road and water networks they use to deliver goods to the markets they own, and the large amount of property and contracts they have that are enforced by the state. So yes, I do believe they use more government services than the average person.
3) Plenty of markets work that way: https://en.wikipedia.org/wiki/Price_discrimination Furthermore, in a market, the seller sets the price, and the buyer is free to take his business elsewhere. And there's plenty of countries to choose from - so why should government services be different?
In an ideal world I would prefer to reduce zoning so I could live near my work rather than pay a ton for roads that don't support me as a cyclist and transit user. For paying for healthcare, many illnesses are preventable and I do not think those should be paid for by others. As well, the military does some super questionable things that I do not support. Working in security, with my partner previously in healthcare IT, we have seen our share of wasteful or inefficient government contracts.
I don't have a solution for a better system, but I can absolutely see why people do not like taxes. They aren't building the world I want to see.
Taxes are utilized notoriously inefficiently in the US. It's not unreasonable to want them to be lowered and used more efficiently, or to even simply prefer having less services.
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