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A Cosmic Visitor's Take on Taxes
It is a human tendency to assume the world we are born into is as it should be -- a Panglossian assumption that colors our understanding of the abstract, like tax policy.
To get grounded in what is, without assuming it is natural, let's try a thought experiment. Imagine you are a researcher from a distant planet, part of a team sent to stealthily observe and report your findings. Telemetry has revealed the watery and volcanic nature of our planet, so you focus on the organized activities of Earth's top sentients. Your protocol requires you to identify the biggest common enterprises first and then work your way down.
So what would lead your report? What is the biggest human enterprise? Industry? Digital activity? Military? Healthcare? Food production? No, the biggest enterprise, by far, is tax.
Tax accounts for close to 30 percent of economic activity in the United States, 40 percent or more in much of the modern world, and in some countries more than half the economy.
Not being from another planet, it may come as a surprise to you that tax is number one. After all, tax has become a vile word in America, an epithet and a feared label. And because it's a vile word, rational discussions about tax and how to get the most benefit for the least levy are about as likely as a team of extraterrestrials conducting stealth research.
But there it is, number one. Because we devote so much to tax, we must love taxes, right? Or at least what taxes buy. Either that or we are crazy because it doesn't make sense to put first that which you hate. Yet our focus as a society is on far smaller components of our economy.
Take profits. Profits are Lilliputian compared with the gargantuan size of tax. Interest is only about three-fourths the size of profits and virtually unknown as a source of income to those below the top 2 percent of earners.
Or consider new vehicle sales, a giant business whose total domestic revenue when you count both cars and light trucks equals less than four months of federal income taxes, which in turn are less than a fourth of all taxes in America.
Yet anyone taking the measure of America or the world from popular media, be it television or magazines, would think tax was nothing and automobiles were huge. Indeed, from the ads in print and on the air, one could easily be misled into thinking that beautiful people with costly ornaments rank very high in importance, while taxes are unheard of.
This results in a series of paradoxes:
2. The countries with the highest overall taxes tend to be better off and report the highest degree of happiness, but there is a global trend to reduce taxes.
3. Washington is full of claims that high taxes are killing business, yet manufacturers rush to leave America for a high-tax country called China.
1. Humans devote the largest single part of their economies to taxes, yet generally hate taxes and avoid thinking about them in serious ways.
These contradictions are, with apologies to Winston Churchill, a riddle wrapped in a mystery inside an enigma.
When words and deeds are so far disconnected, it suggests a kind of craziness. And craziness does not beget rationality or good decisions. And an amalgam of irrationality and bad decisions is a prescription for a very bad economic headache.
Now let's ponder where taxes come from, geographically speaking, and where wealth is held, although not necessarily made. Imagine your report back to the home planet includes hologram-type three-dimensional images of Earth, virtual globes with spikes and valleys to show the contours of economics.
The world of wealth would include vast flat expanses -- Africa, Siberia, large parts of Australia and Brazil -- and lots of spikes at Bermuda, the Caymans, and cities like London, Beverly Hills, Calif., Zurich, and Monaco.
Even in a nation as wealthy as America, the spikes would stand out against a mostly flat landscape, wealth being highly concentrated not just in a relatively few hands, but in a relatively few places. Lower Manhattan would be a sharp spike rising far above the planet, while vast areas of Appalachia, the South, Midwest, Rockies, and the western parts of New York state would be mostly flat. Wyoming would be as flat as Kansas, except for the sharp spike rising from Jackson Hole.
A parallel hologram of where taxes are paid, however, would not look the same. Even if the globe scales were proportional to global shares, the tax globe would not rise nearly so high in its spiked places.
The Caymans and Monaco would be spikes on the wealth globe, flat on the tax globe, although both would be flat on a third virtual globe showing population.
How much does our crazy, disconnected debate about taxes have to do with the mismatch between these twin three-dimensional images of where wealth resides and taxes arise? How much does it have to do with the fact that Kiplinger's, Money, Smart Money, and dozens of other magazines operate from an antitax bias, as shown by their focus on how to cut your individual taxes rather than on taxes as a whole? How much does it have to do with policies that have made a growing minority of Americans exempt from federal income taxes, although that portion of the populace will shrink some starting next year?
There is an old truism that what you think about is what matters to you. The same is true about your money. Taxes must matter, or else why would we spend so much time on them?
Yet we treat taxes and public finance like a reliable and familiar spouse ignored in favor of the excitement of an illicit affair, our hearts and minds focused on the baubles and not the substance of life.
In three years of writing this column, I have enjoyed the time and reason to think deeply about the role of tax in life, in sustaining our democracy, and about the growing mismatch between our debased national debate on taxes and how we make society work.
The top conclusion I have come to, the one that like our imaginary intergalactic researchers report must come first because it matters most, is that America with all of its greatness, its freedoms, and its potential, is, like democracy itself, the child of tax.
Two centuries of debate and thoughtful consideration by the ancient Greeks gave us the moral basis for progressive taxation and, in turn, the radical ideas that people could govern themselves and that just because a man had money he was not entitled to a larger voice in the body politic.
Seven years under a central government without the power to tax or regulate commerce destroyed the first American republic and created the need for the second, with its strong powers of tax and regulation.
We are abusing our child -- which is to say we are abusing America -- with all of the hate-filled, nonsensical, demagogic talk about tax that dominates one of our political parties and intimidates the other.
We have forgotten the wise words of Edmund Burke, the founder of modern conservatism, who in his 1793 letter made the telling observation that "the revenue of the state is the state."
We seem to think we can raise generations to hate tax, when hate is never a good emotion. We spread tax illiteracy, with no regard for how it undermines America, the liberties of the people, and the very idea of self-governance. If you doubt that, just remember the total disconnect between what the Boston Tea Party was about and what modern Tea Partiers say is their cause.
Tax is not a pleasant subject and never will be. Neither are the responsibilities of child care, like calming bedtime fears about imagined monsters lurking in the shadows. Parents who perform these duties, showing their love by their actions, make for productive adults, while those who shirk the unpleasant realities of parenting often discover what a nightmare a child can grow up to become.
We need to nurture America. We need to do the hard work of changing our tax system to fit the times, of comforting those afflicted by change, and conquering the imaginary monsters perpetuated by politicians consumed by anti-tax ideology and the pursuit of power. We need to remember all six noble purposes in our Constitution's preamble, and we need to take care of our common property, forgetting neither our purposes nor our investments in the commonwealth.
Without taxes there is no America. Taxes are the foundation of the commonwealth, of the goods and services that make society work, and on which private wealth is built. Unless we build a sturdy foundation, we cannot prosper, we cannot remain free. Skyscrapers built on sand will fall.
Too few Americans know these simple truths. When too many fail to even care about them, our society will begin to die, until one day students will open a history text to a chapter that begins with these awful words:
The United States of America was. . . .
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15 Comments so far
Show AllDCJ is definitely someone worth paying attention to. He does his homework. But I wish in this article he would have made his points more explicit. His point that taxes are the biggest part of the economy is important. When you realize that those "spikes" of wealth and the flatness of the tax base means that the way in our society to really make a lot of money is - not by making a good product - but by finding a way to get public money (taxes) into private hands. Wall Street is the best at this as can be seen in the $ trillions of public monies that have been redirected into the hands of a tiny set of bankers. Those spikes of wealth for the few are created by the robbery from the many - aided and abetted by "our" government.
As you imply, people should not be angry about tax, only the way it is distributed. We are largely alienated from the money. We pay it, a (sort-of) elected representative of someone gets to spend it in the manner they decide, whether we agree with it or not. We should be demanding more taxes and more direct control of it. Who cares if we live in a "Democracy" if we have no control of how the government distribtes our national treasury?
This Cosmic visitor wonders: what do people really think would happen without tax? Who builds the roads, and the water systems, and the sewage and all that? Let coporations take over that too? They've done such a great job keeping the prices of food and gasoline affordable, and what a bang up job with the housing market! How much is a private company going to charge you to use their roads? Just think about how much they charge for parking. Perhaps we should return to the days when fire departments only serviced the houses that paid the fee.
If people want a society then we need taxes, if people want to live in an anarchistic suburban wasteland then scrap the taxes, corporatize the whole works and pay for endless user fees and other "protection."
You are right. Taxes are not the problem. It is how they are distributed. Under capitalism they are distributed to to benefit the capitalists, not the majority of the population.
Progressives often see the state as a neutral party. It is not. It is a crucial participant in capital accumulation. Law, policy anid regulation all serve corporations. Progressives think that if they can get enough of their candidates in office they can make the government serve thier interests. This demonstrates a fundamental misunderstanding of the state under capitalism. This is also something that libertarians do not understand. The state is not a barrier to wealth accumulation. It is fact a critical to it. Important natural recources are made available to private gain at rock bottom prices by state intervention, for example. The American revolution is often called one of the first bourgeois revolutions. This is because it was primarily a revolution to benefit, a then new, class. The capitalist class.
the author writes: When words and deeds are so far disconnected, it suggests a kind of craziness.
well here in amerika we got crazy - even more than we got taxes
we got lots of crazy
tax tax and more tax - crazy tax
and now the bankers and the un and the rothschild/rockefeller debt prison has developed this crazy idea of a carbon tax
the mother of all taxes - which will be administered by the way through the rothschild bank in switzerland
here is the featured story from newsweek in 1975 about - of all things - global cooling
"There are ominous signs that the Earth’s weather patterns have begun to change dramatically and that these changes may portend a drastic decline in food production – with serious political implications for just about every nation on Earth. The drop in food output could begin quite soon, perhaps only 10 years from now. The regions destined to feel its impact are the great wheat-producing lands of Canada and the U.S.S.R. in the North, along with a number of marginally self-sufficient tropical areas – parts of India, Pakistan, Bangladesh, Indochina and Indonesia – where the growing season is dependent upon the rains brought by the monsoon.
The evidence in support of these predictions has now begun to accumulate so massively that meteorologists are hard-pressed to keep up with it. In England, farmers have seen their growing season decline by about two weeks since 1950, with a resultant overall loss in grain production estimated at up to 100,000 tons annually. During the same time, the average temperature around the equator has risen by a fraction of a degree – a fraction that in some areas can mean drought and desolation. Last April, in the most devastating outbreak of tornadoes ever recorded, 148 twisters killed more than 300 people and caused half a billion dollars’ worth of damage in 13 U.S. states."
the full article is here - http://www.denisdutton.com/cooling_world.htm
notice how they cite "massive scientific evidence"
also notice how these days global warming has been changed to climate change - mainly because the climate is cooling
they know we are so stupid we will believe anything
like wmd in iraq
bin laden attacked america
bill clinton is innocent
bush is the decider
now before all the climate change nazis and shills go apeshit on me let me point out that i am against pollution and want it to stop
paying taxes to the rothschilds will not accomplish that
i sold my car - bucket seat cougar - many years ago and ride a bike these days
i think we should put polluters in jail for long prison terms and take all of their cash and holdings as a penalty
i think we should mount a worldwide class action suit against the corporations for killing our planet and several millions of poor people along the way
i'm all for that
just don't give me any bullshit about rothschild taxes or carbon credits which is nothing more than yet a new ponzi scheme which will dwarf the 4 quadrillion credit default swap market
fuck the carbon tax
let's make the corporations clean up the world - they were the ones who killed it
First of all, with regard to global warming, you are confusing the average worldwide temperature with local temperatures. It does not matter by what small fraction of a degree the temperature goes up (or down) in North Rabbit Tail Bend, South Dakota. The worldwide temperature is going up.
Second, your comment about the control of tax funds by the Rothchilds is ominous. Will your next post be based on the Protocols of the Elders of Zion?
MED: It takes a lot of imagination to conflate one thing, the OBVIOUS weather events given their calamitous, ubiquitous nature, and the dishonesty of politicians lured by the age-old problem of greed. It is either dishonest, or reflective of a twisted sense of logic, to compare one item with the other.
Although I may not agree with the carbon tax, and do agree corporate profits should substantially contribute to clean-up, as well as "Greening" efforts, the message of your post is that climate change is a fiction convenient to economic elites. That's some really twisted logic, right up there with the resident apologists for nuclear energy chiming in about the "proven" safety of that deadly technology.
Just as Naomi Klein pointed out in "The Shock Doctrine," catastrophes are money makers to the fiscal sharks that reside in our nation's symbolic waters. It's sad that people mistake the money making compulsion for the THING itself.
You can critique "leaders" and corporations all you want. You can speak about corruption in high and low places, about human greed, and a consumerism ethos too long parked in over-drive. However, none of these replaces the REALITY that weather systems have become substantially destabilized, it's costing billions, it's been predicted from both scientific AND mystical sources, and there's NO going
back to what was.
What would motivate a person to pretend otherwise? Or STILL be unable to see what's beyond obvious? And please, not the ridiculous come-back that there's always been tornadoes, earthquakes, etc. AS HAS BEEN PROVEN and stated by scientists who are NOT sponsored by Republican or Libertarian think tanks... what we are witnessing is an uptick of frequency, intensity, and activity. THAT is the issue.
Now put THAT in your pipe, and smoke it.
We all believe what we want to believe. It's kind of like food gathering, you see something that seems interesting so you give it a taste, if it's to your liking you ingest it, if not you move on. We all put weight to those things we agree with and discount the rest. In the US we are conditioned from birth in an authoritarian belief system, the experts hold the true knowledge. What is the track record of the experts in human history? Throughout history most expert knowledge has subsequently been proven to be in error. We do a great disservice to ourselves when we totally discount those we disagree with. It seems that most who post here on CD are seeking understanding and an exchange of ideals. Yet there are some who seem to believe their ideals and thoughts are superior to all others. Do any of us truly understand how or why we think, feel, and act the way we do? Are there really people who believe they know the only correct way to think and have an obligation to police the posts on CD? I appreciate it when folks respond to my posts on CD I really like to read your thoughts on what I have to add to the discussion. I appreciate it even more when the comments don't end with ”nough said”or “ put that in your pipe and smoke it” Peace.
I wonder: In many ways I would agree with your post. However, there ARE think tanks designed to muddy the waters, and when it comes to climate change, which we ALL have a stake in, anyone who would STILL push the idea that there is not enough proof, or conflate the real events with political greed is doing a MASSIVE disservice.
Do you think the Nazis should have been tolerated in Germany? Do you think the person being knocked in the head should show respect to the one hitting them?
All thoughts and opinions are NOT equal. Lies are not on a par with truth. Fox news is NOT Fair and Balanced. You want to debate a political horse race, fine. You want to debate what degree diet impacts health, fine. You want to debate whether privatizing education has any merit, fine. But I will draw the line on both integrity and credibility when ANY poster still has the nerve to show up and pretend that the evidence is NOT in plain sight about nature's HORRIFIC decline. She cannot speak with words, so Gaia speaks with actions... and her SCREAMS are in plain sight. Everywhere!
Why would anyone deny this?
It argues that no behaviors should change.
It argues that not enough data is in.
It argues the wrong cause with the effects. And what that does is nullify action.
No real action is possible until enough people wake up, and posting FALSE data is tantamount to telling everyone to remain asleep. In another thread today Eric Blair put it very wisely: that those of us who are awake, are waiting for others to join us... to wake up. Effective change, and with respect to climate change we are REALLY talking life and death, needs those numbers.
So just as think tanks LIED about big tobacco, and the same ones have pushed massive lies into mainstream media outlets about climate change, here we sees lies, or a pretty selective capacity for inattention... in either case, these lies/willful ignorance cost lives. And they are KILLING nature.
I expect the comeback to be about blaming me, and other citizens, for still heating our homes or occasionally using our cars & computers. That is the favored meme when the right wing types feel UP against the wall... and can't answer the charges.
Hi Siouxrose, Thanks for the response. It is a fact that in the seventies and eighties there was much talk of coming global cooling. Some even spoke of catastrophe if we did not act. Had we believed,we might have taken action to warm the planet. Your thoughts please. You say no real action is possible until enough people wake up. Do you think that you can convince someone to change their mind with belittling and insulting comments? More likely you will polarize the argument and harden their opinion. I propose to you and other responders here on CD that rational and well reasoned discourse is a more effective way to change minds and gather more readers to your cause. With Respect Thank you.
You don't much wonder at all. What do you think I am, some school girl you can condition to behave with nonsensical comments about effective ways to change minds? That type of attitude made sense 25 years ago. The evidence is screaming all around us. Those who don't see it or want to tell the truth are harboring AGENDAS.
I noticed how all sorts of "new" names appeared in these threads lately while the persons who used to post hour after hour (many also known to harass me) just happened to disappear. Now they appear to have been replaced with a whole new "crop" of the good cop/bad cop brigade. I sensed you were trying to bait me into a discourse that would only result in granting you another opportunity to chastise me for not being quite polite enough. As if the life or death issues of our times come down to such NONSENSE! Please. Dancing with Nazis is not my forte. Sometimes the wisest thing to do is to scream.
I'll try to avoid you in the future. Hopefully, you'll do likewise. IF you were interested in Truth, rather than adhering to polite protocols on the virtual Titanic, maybe there'd be cause to converse. I see that you're just playing games... or blind to what's going on. I cannot lend you my eyes. That job belongs to YOU. In case you don't recognize this about yourself, your post comes off like someone trained in Christian obedience and religious fundamentalism, either that, or you reflect all the inverted qualities of a natural authoritarian. I find that type of ideology and behavior repugnant... it KILLS the spirit.
Wow, I am sorry. Somebody must have really shit in your flower pot! I will take your advice and try to avoid you in the future. Good Day.
"We all believe what we want to believe."
Biggest fallacy in America today, another lesser polite word for it is delusion or wishful thinking. This is a fallacy shared by many on BOTH the left and right whether it's right wing Christian Zionist fundamentalists, or left wing New Agers and hipster cafe living post modernists relativists, like wow man what if my bong wasn't real maaaaaaaan?
The fact that there are millions of Americans who are overtly delusional and it doesn't raise any alarm bells shows the failure of our economic and educational system. Here are some truths that invariant objective truths regardless of whether you choose to acknowledge them, 2 + 2=4, if a piano falls on your head from a 10th story window it will squash you, and anthropogenic climate change is very real and getting worse:
http://www.sciencemag.org/content/306/5702/1686.full
Oh noes peer reviewed science, cue outrage from BOTH the right wing know nothings and the New Age crew.
Sigh!
I'm not sure how taxes and how we talk about them are the driving force behind the predicaments in which we find ourselves today.
For a slightly different take on a space visitor's impressions of Earth, see my column published on Saturday, June 3, 2006 by CommonDreams.org:
"A Martian's Eclectic Observations of Earthlings"
http://www.commondreams.org/views06/0603-22.htm
Caroline:
I looked at the column you cited. It is (was?) very good. You and the author of the tax article are approaching the same thing (Wake Up! We are all crazy fools!) from different directions. You say that we are inconsistent, which certainly is true, but his indirect approach is valuable because it addresses our tendency to look for the bogeyman (taxes) under our beds every night.
I admire DCJ and I like his books, even though he seems to have a studied indifference to the fact that our monetary system is run by private entities (the FED, BOE, etc.) set up for the private profit of their behind-the-scenes shareholders. Surely this fact alone is just as important as taxes. When for-profit private entities can create money out of thin air and make us pay it back with interest, that rates as a bigger story than the relative detail called "tax".
For those of you who want to refute me, please be grown up about it and refrain from name calling and attempting to smear me with references to the "Protocols of the Elders of Zion". Thanks.