A Taxing Dilemma

Foundation for Better Government

(www.bettergovt.blogspot.com)

December 6, 2012

A Taxing Dilemma

By T.S. Khanna, December 6, 2012

Taxation without representation is a tyranny.  The reverse is even worse, i.e., representation without taxation.  Yet, its practice in democracy goes unquestioned.  This fundamental flaw in democracy, leads the nation to a political economy, away from the wealth producing principles of sound professional economics.

Political economy encourages the growth of non-taxpayers, entitlement programs, and welfare recipients.  The citizens benefiting from such programs, with their ever increasing voting power steer the economy to serve their own interest.

As the government expenditure surpasses its revenue, the increasing number of non-taxpayers through their majority representation, impose higher taxes on the taxpayers or borrow funds, while the economy keeps weakening to the point of collapse.

This is not an imagined scenario.  This is happening in the US.  This is an inexorable march to socialism---driven by the wealth distribution incentives as opposed to the wealth producing incentives.  All democracies are likely to face a similar predicament sooner than later.

The march to socialism is rooted in one-man-one-vote verdict by the Supreme Court, an interpretation of “…all men are born equal”---Declaration of Independence.  Road to socialism leads to increasing poverty and decreasing liberties.

For an unlimited economic progress under democracy, the Declaration of Independence should be interpreted correctly to emphasize equality of opportunity for all.  Right to vote should be regarded as an earned privilege with equal opportunity for all, not a birth right without any attendant obligation.  

Those who do not pay any income tax must not have the right to vote.