Tax Dodging: The Real Theft

The Speaker of the House last week said that taxing people to pay for government is theft. Let’s look at just where actual theft is occurring.

Michael McAuliff and Sabrina Siddiqui covered the story at the Huffington Post, in John Boehner Compares Tax Proposals Of White House To Stealing,

We don’t have a revenue problem. We have a spending problem,” Boehner added. “How much more money do we want to steal from the American people to fund more government? I’m for no more.”

Yes, the old “taxes are theft” argument again. This is the line of reasoning that says government is bad, that decision-making by We, the People is bad, that people are “takers” and the wealthy are “producers” and “job creators,” and that the people are lazy and “don’t want to work” and if you let them assemble together and vote they become a mob that will steal everything from the rich who are rich by Devine Right, etc…

Keep in mind that in a democracy We, the People make decisions and government spending by definition is We, the People deciding to do things that make our lives better.

In honor of Speaker Boehner’s argument that taxes are theft, this is from August 2010: (even though the post will say June 12, 2012…)

Tax Cuts Are Theft

Conservatives like to say that taxes are theft. In fact it is tax cuts that are theft because they break a long-standing contract.

The American Social Contract: We, the People built our democracy and the empowerment and protections it bestows. We built the infrastructure, schools and all of the public structures, laws, courts, monetary system, etc. that enable enterprise to prosper. That prosperity is the bounty of our democracy and by contract it is supposed to be shared and reinvested. That is the contract. Our system enables some people to become wealthy but all of us are supposed to benefit from this system. Why else would We, the People have set up this system, if not for the benefit of We, the People?

The American Social Contract is supposed to work like this:

A beneficial cycle: We invest in infrastructure and public structures that create the conditions for enterprise to form and prosper. We prepare the ground for business to thrive. When enterprise prospers we share the bounty, with good wages and benefits for the people who work in the businesses and taxes that provide for the general welfare and for reinvestment in the infrastructure and public structures that keep the system going.

We fought hard to develop this system and it worked for us. We, the People fought and built our government to empower and protect us providing social services for the general welfare. We, through our government built up infrastructure and public structures like courts, laws, schools, roads, bridges. That investment creates the conditions that enable commerce to prosper – the bounty of democracy. In return we ask those who benefit most from the enterprise we enabled to share the return on our investment with all of us – through good wages, benefits and taxes.

But the “Reagan Revolution” broke the contract. Since Reagan the system is working like this:

Since the Reagan Revolution with its tax cuts for the rich, its anti-government policies, and its deregulation of the big corporations our democracy is increasingly defunded (and that was the plan), infrastructure is crumbling, our schools are falling behind, factories and supply chains are being dismantled, those still at work are working longer hours for fewer benefits and falling wages, our pensions are gone, wealth and income are increasing concentrating at the very top, our country is declining.

This is the Reagan Revolution home to roost: the social contract is broken. Instead of providing good wages and benefits and paying taxes to provide for the general welfare and reinvestment in infrastructure and public structures, the bounty of our democracy is being diverted to a wealthy few.

… read the rest of Tax Cuts Are Theft

Also see see Tax Cuts Are Theft: An Amplification by Sara Robinson.

And while you are at it here are some other posts in the Reagan Revolution Home To Roost series:

• Reagan Revolution Home To Roost — In Charts
• Reagan Revolution Home To Roost: America Drowning In Debt
• Reagan Revolution Home To Roost: America Is Crumbling
• Finance, Mine, Oil & Debt Disasters: THIS Is Deregulation