At the risk of giving it more attention than it
deserves, I want to go back to Mitt Romney's remarks about "47%" of the
people being unwilling to vote for him. Part of the problem with these
remarks is that, as Rich Lowry points out, they confuse three distinct
groups.
Lowry goes on the characterize the
remarks as a bad idea poorly stated. To the extent that Romney was
suggesting that people who pay no income tax will not vote for him, he's
wrong.
Nor would it be fair to say that everyone who does
not pay income tax or receives governmental assistance does not take
personal responsibility for themselves.
But given
that Romney doesn't call for raising taxes on low income people or
abolishing social welfare programs, I don't think he meant to say that. I
think he was trying to stay - in a cobbed up way - that there are
voters that he has no chance to win over and that a substantial reason
for that is that they benefti from and do not pay for an ever increasing
web of entitlements. Because of this, they have little interest in
controlling the growth of the social welfare state. This, I think he
meant to say, is a bad thing.
And that was a good point poorly stated.
Having
large percentages of the public who don’t pay taxes and receive
government aid is probably not healthy for democracy. As Madison wrote
in Federalist No. 10, permitting a majority to exact money from a
minority is a dangerous thing:
“The apportionment of taxes on the various
descriptions of property is an act which seems to require the most exact
impartiality; yet there is, perhaps, no legislative act in which
greater opportunity and temptation are given to a predominant party to
trample on the rules of justice. Every shilling with which they
overburden the inferior number, is a shilling saved to their own
pockets.”
This doesn’t mean that there ought not be a social
safety net or provision of public services. No one who followed Romney’s
record in Massachusetts or the positions that he has taken in the
campaign can make the case that he disagrees (even if they want more
government than he does.) Madison’s observation does suggest that there
is a “tipping point” – a stage at which the disconnect between the
receipt of benefits and the obligation to pay towards them becomes
problematic.
Cross posted at Purple Wisconsin
14 comments:
Fortunately, we are not a country where "large percentages of the public do not pay taxes." Working Americans, whether they pay income tax or not, pay the payroll taxes that support the social safety nets of Social Security, Medicare, and unemployment compensation. Homeowners pay the property taxes that support local government -- and renters pay them indirectly, through their rent. All of us who consume pay sales taxes, at least in states and localities that levy sales taxes, and all of us who drive pay the gasoline excise taxes that support highway construction.
Maybe only 54% of Americans currently pay income taxes. A far smaller percentage will ever be taxed on their estates. That doesn't mean the vast majority of Americans don't pay taxes. And, frankly, between payroll taxes, sales taxes, property taxes, state and federal income taxes, and excise taxes, almost all of us devote a far higher percentage of our incomes to taxes of one sort or another than W. Mitt Romney does. Add up what you pay in all those categories. I'll bet it's a lot more than 14% (or 15% or 16%, if you include the sales taxes the Romneys pay on their horse feed, the property taxes they pay on their various estates, etc.).
...not to mention the indirect taxes paid when any citizen buys ANYthing, thus creating taxable income for the retailer and provider(s) of the goods/services.
And let's not forget the taxes paid which are disguised as "regulatory costs" but which, in a lot of cases, are simply wealth-transfers to Government employees.
Dad: How you likin' that Social Security, and that Medicare? My payroll taxes are paying for those for you. And the payroll taxes of people who pay no income taxes.
Thanks, sucka!!
I'll send you a card from Hialeah...
If Mitt gets deductions for his Olympic horse, why can't I write off a pony for my kids?
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