Saturday, September 25, 2021
HomeRecommended"Taxes" vs "Revenues"

“Taxes” vs “Revenues”

Big Government Democrats have decided to stop calling taxes “taxes,” start calling taxes “revenues,” and measure them as if they were earnings. This newspeak is another Big Government Democrat scheme to conceal their intentions from the people who vote for them. To the extent that Republicans play along, they surrender to stupidity.

Here is the problem. Taxes are not earnings. They are taxes. They are not assessed in terms of dollars, but in percentages of income (the monetary measure of time) that individuals forfeit to the state. If you pay 10% of your income in taxes, you effectively forfeit 10% of your time to the state. If you pay 50%, then it’s 50%. It’s a form of servitude, and the higher the percentage the more intolerable the servitude.

If the government provided products or services people wanted enough to pay for, then it would have earnings. It doesn’t. It regulates our lives in intrusive and unwanted ways, and taxes us to pay for these unwanted invasions of our privacy. In this way government is like a parasite feeding on the American people. The larger and healthier the parasite gets, the sicker the American people get.

But the point is that taxes are not earnings. Taxes are taxes. They do not produce earnings, they simply convey to government the dollar value of the time taken from working Americans. They only extract time, energy, life, work, and value out of workers. In other words, government revenue is a measure of how much taxes suck.

Income taxes, since they are percentages that increase with increasing income, are also subject to avoidance. If people don’t want to be taxed they will avoid the taxes. They may move to somewhere where the government is not as greedy and destructive. They may stop working so hard. Or they may divert their earnings stream to a less taxed form. The actual tax moneys sucked from the American people may vary widely. But we know from experience that they will always fall short of expectations, making projected earnings consistently too high.

That brings up a question: Is consistently overestimating the amount of money available before creating a budget a smart thing to do?

To the contrary, it is stupid to measure taxes in terms of revenue, since the projected revenue from new taxes will always fall short. This includes the projected revenue from inflation driven bracket creep. Taxes will always fall short, as long as government pinheads measure taxes in dollars as a revenue and there is a progressive income tax.

The point is that we cannot measure percentage taxes in terms of dollars of revenue. They have to be measured in terms of percentages of wages, not in terms of revenue.

And they need to be called taxes, not revenue. Because people don’t mind paying for something that is worth the cost. Unfortunately, the US government does not pass that test.


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