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Could April 15 Be Less Taxing?
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11144 |
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CURRENT ISSUES
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3 / 1986 |
2,584 Words |
| Author
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Dan Mitchell
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The average American is remarkably satisfied with the system of taxation in this country. This is not to say they are happy to pay their taxes. Anyone who did not do everything they could to legally avoid paying taxes is a candidate for committal to an asylum.
Nonetheless, an almost unanimous majority of Americans meekly submit to the expropriation of their incomes. We have come to view the income tax as needed for the very existence of government. A necessary evil, to be sure, but still a necessity of the orderly functioning of society. A Supreme Court justice declared, "Taxes are the price we pay for civilization." Disregarding the merits of the quote, the statement is indicative of how deeply ingrained the practice of paying taxes is in our society.
Even though the income tax is a familiar part of life for every productive adult, it is not the inevitable or necessary condition of life we think of it as being.
Short-lived Condition
The income tax has only existed since 1914. For only the last 72 of the 210 years America has been a nation has the income tax been a means for the government to collect revenue. In spite of the widespread acquiescence to the tax, the historical record shows that the country existed for almost twice as long without an income tax as it has with one. It is a tribute to government public relations personnel that the income tax has become such an accepted part of political and economic life.
Some historical evidence makes this point clearer. The United States Constitution, prior to the adoption of the 16th Amendment in 1913, excluded the national government from levying direct taxes.
Without delving too deeply into the subject of taxation, suffice it to note that a direct tax is one that cannot be avoided. This is in contrast to an indirect tax, which one pays as the result of a deliberate action. For instance, a property tax, poll tax, or an income tax would be a direct tax since there is no choice for a citizen except to pay. On the other hand, indirect taxes, such as tariffs, excise and sales taxes, and user fees, are only paid when a citizen makes a voluntary gesture such as purchasing goods.
In some ways, this distinction is not completely consistent. One could obviously "choose" not to work or own property in order to avoid direct taxes, and conversely, it would be hard to imagine existing without paying any indirect taxes. Regardless of the possible lack of complete consistency, it is instructive to note that the framers of the Constitution clearly intended to limit government's power to tax the possessions of individuals.
It is in this context that it is possible to fully grasp the logic and purpose of the Founding Fathers. The framers set up the Constitution as a protective document. They wished to permanently limit the powers of government. In so doing, they believed that the rights of life, liberty, and property would be secured against either direct or sanctioned government infringement.
In terms of the income tax debate, it seems clear that the framers believed that
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