Taxes are a fascinating subject. They impact us all, either through paying them, or receiving some of the benefits thereof, even if it’s just using roads.
They are a serious topic in politics, economics, morality, sociology, and the list goes on. They are an inevitable part of reality at several levels, particularly economically.
So you’ll find stuff about taxes on this site.
I’ll try to steer clear of the specifics, which tend to relate to particular tax jurisdictions. There’s a lot to be said about taxes in general terms though.
In theory, one would think that one ought to be able to come up with some sort of moral basis for taxes, and some sort of tax structure that’s ethically based.
There’s a motherhood question that everyone, including myself, agrees with.
“Do you believe everyone should pay their fair share of tax?’
“Yes”
Unfortunately, like all motherhood statements, it’s meaningless.
After forty years of considering the problem of taxation I have come to understand that:
The disparity between the rich and poor is obscene and something needs to be done about it. The wealthiest 1% of people own as much as the least wealthy 47%. Taxation appears to be an obvious candidate to correct this, but …
I can’t work out what a ‘fair’ amount of tax is.
I can’t work out to whom such tax should be paid.
I can’t work out how to ensure rich people can’t walk around it easily.
The principle problem is transfer pricing and national / jurisdictional borders.
I am also aware that, confronted with these problems governments don’t attempt to raise taxes morally, they raise them any way they can, usually on the easiest targets who have the least means to structure their affairs to avoid them.
So - NO I don’t think any of the tax collection systems in place are particularly fair or moral.
A related issue is whether the tax systems are effective. Do they achieve the desirable goals of a tax system? Again, I find this astonishingly hard to achieve practically, and I don’t think the systems currently in place are particularly good or effective. They do raise significant taxes, which is not such an easy thing to do - ask the Venezuelan government about that. But do they do so in a way that encourages hard work, savings, self sufficiency, morality, good citizenship, wise productive investment, value creation, trust in government and institutions, and the other goals of a good tax system? Do they do so efficiently?
Alas, really not.
More on those subjects later.