How much of your paycheck do you deserve? Who should determine how much of it you deserve: politicians, your neighbors, or you? Democrats believe that government should decide the answers to these questions. But is it government’s place to determine these answers?
Democrats (and many Republicans) believe that the federal tax system should be used to redistribute wealth from the “rich” to the “poor.” Our current graduated tax system is based on this philosophy. The more productive one is in America, the more one is punished for their productivity (in the form of taxes).
This belief is far from equitable and goes against America’s capitalistic values. Taxing individuals based on their income gives the government, and hence politicians, the power to determine how much of your paycheck you deserve. Washington currently believes that individuals who get ahead in life (like by enduring four years of mental torture to become an engineer) deserve less of their paycheck than individuals who may have fallen behind (like by getting a degree in communications).
To remedy these inequities, a “fair tax” system has been proposed. In this system, people are taxed on how much they spend, not how much they earn. This system has several advantages over our current system. First, the huge governmental bureaucracy called the IRS would disappear, along with all of the institutions that feed off of it (like H&R Block). This would force many individuals to start producing, rather than feeding off the bureaucracy. Second, it would encourage companies to locate in America because there would be no corporate tax; thus, providing jobs to Americans. Finally, illegal immigrants and tax evaders would be forced to pay taxes like every other law abiding citizen.
Despite the many benefits a “fair tax” system would offer, one will never be implemented in America. This is because Congress would have to pass such an act, but in doing so they would be relinquishing almost all of their power. Congress’s power to legislate is mainly utilized to offer tax breaks or subsidies to narrow groups of individuals whose work is deemed “essential.” Take away Congress’s ability to offer tax breaks, and you take away their power. This is why the “fair tax” will always be just a dream.