Why do we have any taxes at all?

[zdenek795]

Why do we have any taxes at all?

There is the Keynsian theory that we could have free lunch by printing money.
So why don't we ban all taxes and support the state only from money printing?

 

[hugolp]

Because prices would go up a lot quicker than they alredy do.

If you have to tax, it is 100 times better to tax directly than to tax through inflation, because with direct taxing people have a better control over the capacity of government to tax.

 

[LibForestPaul]

People have not control over the capacity of government to tax.

The reason is control of the people through favoritism and behavior modification. How could you control people if you do not tax them.
Gasoline tax
Fuel tax
Food not taxed
Clothes may or may not be taxed.
Specific "capital" improvements, tax write off.
Tax credits
etc...

How much does property tax and home improvements help in propping up housing and mortgage and construction cartels?

 

[LibForestPaul]

Did you know teachers have a specific line item deduction on 1040 form. Why?

 

[hugolp]

People have not control over the capacity of government to tax.

The reason is control of the people through favoritism and behavior modification. How could you control people if you do not tax them.
Gasoline tax
Fuel tax
Food not taxed
Clothes may or may not be taxed.
Specific "capital" improvements, tax write off.
Tax credits
etc...

How much does property tax and home improvements help in propping up housing and mortgage and construction cartels?

Well, yes, democracy has its problem and it does not gives a lot of control to the people. But still, people have a lot more control if they are taxed directly, than if they are they are taxed through inflation. When you are taxed directly you see how much they take from you every year, and if they are taking too much you can vote to someone else, you can protest in the streets, etc.. But inflation is a hidden tax, and the effects of inflation (rising prices) are not seen after two or three years after the inflation happened (when the politician that did it could be alredy out of office), and people have a strong problem relating the rise in prices with a government indirect tax. That is why politicians love inflation, because people dont realize they are being taxed and they can get away with it.

I am not justifying direct taxation. All I am saying is that if you have to tax, its 100 times better to tax directly than to tax through inflation, because its more upfront and not hidden and gives people more direct information and control.

 

[SevenEyedJeff]

Why do we have any taxes at all?

There is the Keynsian theory that we could have free lunch by printing money.
So why don't we ban all taxes and support the state only from money printing?

I like your idea. Get rid of all taxes except the inflation tax. If inflation is too high, then it will be easier to see that the problem is government overspending. No more shell games of raising this tax, and lowering that tax, etc.

Seriously, the makers of the Matrix wanted to make this a perfect world. But the human mind cannot accept this, and must experience the misery of things such as taxes, and helping the landlady take out her garbage.

 

[FreedomRings]

Why do we have any taxes at all?

There is the Keynsian theory that we could have free lunch by printing money.
So why don't we ban all taxes and support the state only from money printing?

1. Wealth redistribution
2. To create/increase demand for dollars (as they must be used to pay taxes)
3. An excuse to control and monitor everyone
4. To divert attention from the inflation tax
5. ...

 

[dwdollar]

So you can't afford guns, ammo, extra gas for long distance protests. Think I'm kidding?