Monday, November 17, 2008

On Taxation

What a sucky and somewhat necessary historical institution - the institutionalized pseudo-artist that continually degenerates behind good intent falling victim to the bureaucratic serial killer.

The original intent of any institution, whether it be religious, political, or social, over time decays to the rituals of false security; those seeking power manipulating their present-day institutions to gain security in the form of power. Unfortunately, the ritualized institution becomes self-sustaining with the original ethos ebbing away as the high tide deposits colorful shells of deceit upon a tainted shoreline.

A prime example is the modern bureaucracy. Over time, the underlying intent for creating the institution may fall victim to unwholesome interests. The bureaucracy tends to grow with time and different subdivisions may be added to support those that existed before - recruiting the unwary to support a gigantic enterprise resting on a foundation that is not its own.

In 1913, when Colonel House convinced President Wilson to institute the first federal tax, the U.S. Government promised the American people that federal taxes would never increase over 1% of each person’s yearly income. Twenty years ago, one out of every five dollars a person earned went to the Federal Government. Now, it is one of every three. Yes, as a child would say: “Liars, Liars!”

The U.S. Constitution states that every agency of the Federal Government “shall give an accounting of the monies that it spends.” In 1974, the Supreme Court declined allowing a taxpayer to receive an accounting (how much?) of the CIA’s expenditure [United States v. Richardson, 418 U.S. 166 (1974): http://supreme.justia.com/us/418/166/case.html].

Do we know how much they are spending and why do they have to keep it secret? As a child would ask: “Maybe, they are mean?”

A flat tax or some simple graduated two-level system may solve the problem. Simple rules rather than volumes of loopholes are easier to preserve. When accountants stop being bean counters, I believe, they will start becoming artists.

Whew! What does Team HippoParamus think?

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