I had an email from a reader yesterday who asked why Congress won't fix the tax system. He writes:
I think the simplest answer to this question is to quote my catchphrase: there is no such thing as justice, only injustice.
For the individual congresscritter there is no percentage in writing wise laws that dispense justice far and wide. That sort of thing won't get a dog-catcher reelected.
What people want, when they are all stirred up about justice, is the removal of the monstrous injustice that is keeping them up at nights. So if you are a middle-class taxpayer and you pay your payroll tax and your income tax you feel the system is monstrously unjust. On the one hand there are welfare recipients in line before you at the market with their EBT cards; on the other hand there are fat-cat corporate lobbyists getting carve-outs from the pols in return for campaign contributions. It's an outrage! There oughta be a law!
Now the right and proper thing to do, when exercised by government injustice, is to say to yourself: wow, if I am pissed off about the government's Harvey hand in my pocket, what about everyone else? If I am suffering; I expect the whole world is suffering too. We should all get together and make the system truly just!
But people don't think like that. We only think about our personal troubles, the cruel spur of injustice in our own side, and we demand that our congressman fix it. We don't care about other people. In fact we are happy for them to pay more, if only we get to pay less.
This sort of thinking is catnip to politicians. because the art of politics is the art of division. To rile up one group of voters against another, and confirm a voter's rage against the system is the very heart of the politician's profession. Because he cares!
And since the clumsiness of government is eternal, for government is force and force is not particular where it lands its punch, there is never a shortage of injustice for people to rage about and for politicians to promise to do something about.
It sometimes happens, of course, that our rage about the injustice of it all actually pays a dividend, and we actually get government to enact our little subsidy or tax loophole. Yay! Then we discover the truth of the old story about the dog in the manger, for hell hath no fury like a woman scorned. No, wait. Hell hath no fury like the beneficiary of a government handout facing the minuscule diminution of that handout. The injustice! The outrage!
Charles Dickens knew all about this when he had David Copperfield's lawyer employer, Mr. Spenlow, cry that if you touched "Doctors Commons" you would bring down the country. Doctors Commons, for you young 'uns, was a cosy little lawyer monopoly in 19th century Britain that had the exclusive right to deal in wills and stuff. No wonder Mr. Spenlow was exercised about his own special little carve-out. Why, if you touched Doctors Commons then Spenlow, who kept a carriage, would have to go out and get a real job! "Keeping a carriage" in the 19th century was the equivalent of "flying private" in today's world. It wasn't cheap then and it ain't cheap now!
And that is the point of all government subsidies and spending and tax loopholes and Uncle Tom Cobbley and all. Every little carve-out allows some worthy citizen, you or I, to ease off a little on the neverending task of making a living. Backed by the government's men with guns. What's not to like?
It's nice work, if you can get it. And thus the whirligig of time brings in his revenges. And the most significant revenge is that government here in the United States has its hands in your pocket to the extent of 35 cents on every dollar you earn. Yes, you get your own little carve-out, that you are determined to defend to the death. But everyone else has there own little benny, and the total adds up to about $3.5 trillion a year, here in these United States, in the frenzy of everyone having a hand in someone else's pocket.
And it all starts with the really big carveouts, $1 trillion a year for grandpa's Social Security and $700 billion for grandma's Medicare. Don't you dare touch that, because we already paid in!
All just because you and I are much more focused on our own suffering from injustice than the sufferings of others.
And that's why nobody is going to pass a simple tax reform that just tax income, corporate and individual, at a simple and just 20 percent.
I have never heard it explained clearly. If all personal income over the federal poverty level, and all corporate income, provided it does not cause double taxation, is taxed at 20% wouldn’t that work? If not, why not?Yeah! Why not?
I think the simplest answer to this question is to quote my catchphrase: there is no such thing as justice, only injustice.
For the individual congresscritter there is no percentage in writing wise laws that dispense justice far and wide. That sort of thing won't get a dog-catcher reelected.
What people want, when they are all stirred up about justice, is the removal of the monstrous injustice that is keeping them up at nights. So if you are a middle-class taxpayer and you pay your payroll tax and your income tax you feel the system is monstrously unjust. On the one hand there are welfare recipients in line before you at the market with their EBT cards; on the other hand there are fat-cat corporate lobbyists getting carve-outs from the pols in return for campaign contributions. It's an outrage! There oughta be a law!
Now the right and proper thing to do, when exercised by government injustice, is to say to yourself: wow, if I am pissed off about the government's Harvey hand in my pocket, what about everyone else? If I am suffering; I expect the whole world is suffering too. We should all get together and make the system truly just!
But people don't think like that. We only think about our personal troubles, the cruel spur of injustice in our own side, and we demand that our congressman fix it. We don't care about other people. In fact we are happy for them to pay more, if only we get to pay less.
This sort of thinking is catnip to politicians. because the art of politics is the art of division. To rile up one group of voters against another, and confirm a voter's rage against the system is the very heart of the politician's profession. Because he cares!
And since the clumsiness of government is eternal, for government is force and force is not particular where it lands its punch, there is never a shortage of injustice for people to rage about and for politicians to promise to do something about.
It sometimes happens, of course, that our rage about the injustice of it all actually pays a dividend, and we actually get government to enact our little subsidy or tax loophole. Yay! Then we discover the truth of the old story about the dog in the manger, for hell hath no fury like a woman scorned. No, wait. Hell hath no fury like the beneficiary of a government handout facing the minuscule diminution of that handout. The injustice! The outrage!
Charles Dickens knew all about this when he had David Copperfield's lawyer employer, Mr. Spenlow, cry that if you touched "Doctors Commons" you would bring down the country. Doctors Commons, for you young 'uns, was a cosy little lawyer monopoly in 19th century Britain that had the exclusive right to deal in wills and stuff. No wonder Mr. Spenlow was exercised about his own special little carve-out. Why, if you touched Doctors Commons then Spenlow, who kept a carriage, would have to go out and get a real job! "Keeping a carriage" in the 19th century was the equivalent of "flying private" in today's world. It wasn't cheap then and it ain't cheap now!
And that is the point of all government subsidies and spending and tax loopholes and Uncle Tom Cobbley and all. Every little carve-out allows some worthy citizen, you or I, to ease off a little on the neverending task of making a living. Backed by the government's men with guns. What's not to like?
It's nice work, if you can get it. And thus the whirligig of time brings in his revenges. And the most significant revenge is that government here in the United States has its hands in your pocket to the extent of 35 cents on every dollar you earn. Yes, you get your own little carve-out, that you are determined to defend to the death. But everyone else has there own little benny, and the total adds up to about $3.5 trillion a year, here in these United States, in the frenzy of everyone having a hand in someone else's pocket.
And it all starts with the really big carveouts, $1 trillion a year for grandpa's Social Security and $700 billion for grandma's Medicare. Don't you dare touch that, because we already paid in!
All just because you and I are much more focused on our own suffering from injustice than the sufferings of others.
And that's why nobody is going to pass a simple tax reform that just tax income, corporate and individual, at a simple and just 20 percent.