Now Here’s One For All You 16th Amendment Fanatics
Watch as libertarian political activist and 9/11 Truther, Aaron Russo, tries to decipher the advent, progression, and current state of US tax law in one fell swoop in this youtube video. He notes that often Supreme Court cases come into conflict with lower court rulings, especially in instances where the concept of taxation itself is under scrutiny. Some say that taxes, especially so-called ‘progressive’ taxes, should be a moral imperative. Others demand that taxes are illegal, and the sheer concept of taxation has been illegally reinterpreted over time.
Both are correct. Taxation is both a system of representation as well as a system of redistribution, repricing, and revenue, the four “R”s as it were. Without the wealthy sharing their prosperity with others, the nation’s productivity would become stifled and corruption and greed would take root at the highest levels of financial power. This is the concept of redistribution, however, as one can clearly see, the global economy is proving to be a challenging environment in which to compete for capital. The recent news concerning Google’s relatively low-tax offshore entities coupled with the use of effective transfer pricing proves that other countries can use lower tax rates to woo even the behemoths of US business and industry.
However, Google has been under scrutiny recently given its almost indomitable presence on the Internet. Clearly, there are giants of the past, which are now nothing more than tiny relics to be put on display for new boards of directors of newly-minted, more innovative companies: RCA Corporation morphed into being one of the nation’s most awesome conglomerates. Yet, recently the last remnants of it are being sold off by GE. That’s capitalism for you, and who can argue the merits of how taxes may play a role in the decision-making process? Unfair? Perhaps. Spurring innovation and growth? You bet. Businesses must change and adapt to their environment if they wish to continue in business. Tax laws have to keep up with this ebb and flow. As the Google case proves, tax laws in other countries are still tax laws, and the US response should be no less innovative.
However, taxes do not always address business decisions and the quantity and quality of the goods and services that the US has come to depend on. Repricing certain goods and services upward by levying excise taxes is intended to lessen demand for said goods and services, which society deems to be harmful or counterproductive. Tobacco and alcohol are prime examples. Recently, the issue of a carbon tax has arisen and is currently the subject of hot debate. Basically, taxes have given the issues of our day a sense of immediacy, perhaps, and I say this cautiously, perhaps without which society itself would not debate tough issues of importance to the general population.
Taxes are obviously levied in order to fund the government. By law, the government is required to support an army and a navy. Yes, lately they tacked on an air force as well because back in the 1700′s there were no airplanes yet. Oh, and by the way, the innovation that spurred the development of America’s aircraft industry, which has revolutionized the way we think of the world today – that too came courtesy of government spending. Because without the public investment into aircraft production, quite simply put, World War Two would have probably been lost, and today we would be saluting Hitler and Hirohito as our heroes.
And so, may I say that yes, taxation is not a simple matter. It is an imperative that the public views as both a moral necessity and a perversion of justice. Yet, morality is not a matter of legal interpretation. Thinking of taxation as a moral code rather than an oppressive outlaw regime with hidden agendas is necessary for maintaining ones sensibilities. Debating the ethical nature of tax laws is healthy, and indeed the very existence of said laws engenders this healthy debate. Given the popularity of this issue in the current political season, it is best to remind ourselves that the intensity of the debate over taxes is a reflection of the involvement of the citizenry. Alas, one may assume that the tax laws have indeed achieved a just and moral end, though the intricately woven ways and means by which taxes are levied will always be the subject of debate.
