Thursday, July 14, 2011

Broken tax system

Adam Smith's underlying principles of taxation emphasized equality of incidence, certainty in method, convenience of form and economy in collection. Strike 4 for the effectiveness of our current tax system. C. Northcote Parkinson writes that behind the philosophy of taxation lurks 2 distinct but false ideas. 1. taxation of the rich may directly benefit the poor and 2. taxation of the more prosperous reduces the scope of envy. Again 2 strikes for effectiveness. He says that the actual result of our tax system is a weakening of the sense of initiative, of property, of freedom, and inevitably a loss of purpose. 4 more blows to weaken America. Furthermore, he claims the mentality of a welfare state has left adolescents and the younger generation without a sense of purpose. Their world is rendered unbearably tedious. There's nothing like looking back to find the answer to moving forward.

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