The idea that wealthy people should contribute a “fair share” is becoming ubiquitous nowadays. This morning a news anchor asked a Congresswoman what her idea of a “fair share” was, apparently trying to illustrate to her the point that this is an ephemeral concept; even lawmakers rarely give a definitive answer. This particular lawmaker did, however: She suggested an increase to 45% and 49% for the wealthiest Americans, a somewhat modest rate (in comparison to some) to ensure that they’re paying their “debt” to everyone else.
I think the point was lost in translation. Why should it be 45% or 49% or anything? Are we to run the tax code on the whim of a politician? Decide what is morally correct by committees of people in Congress? Even worse – let a majority determine what is just? The meaning of “fair” is not something that can be picked and chosen by human caprice. A tax rate does not become fair simply because people vote for it. The concept of “fair” is determined by reality; human beings can only discover it. In this case, it is simple: Impose a flat tax that is the same for every American citizen, with no loopholes or breaks or credits for anyone, whether family farms or corporations. And how do you determine the rate? By first enacting a proper government whose only role is to protect liberties (i.e., with armed forces, police, and courts). When you’ve done that, the tax rate is exactly and precisely how much you need to run that government, and no more. Voila: You have a tax rate that is determined by objective principle rather than the false legitimacy of a majority.
Critics are correct: The system we have now is completely unfair. But they have it backwards; it is unfairly biased against the wealthy, not the poor. The fact that people are poor is not because the government doesn’t help them enough. It helps them from the cradle to the grave! It gives them anything they need! if you can’t pay your bills in this country, there is no lack of government programs to transfer money from the pockets of others to you.
Furthermore, the problems of the “poor” are definitely not the fault of wealthy Americans. The rick owe us nothing. If anything, we owe them! Let’s talk about the “share” contributed by the wealthy. They create all the jobs. They give us all the products that we use to make our lives better and easier. They create wealth and whole new sectors of the market. They save people time and money by competition and cost-cutting. They already pay far more of the share of the government’s tax revenue than the rest of us. And to top it all off, they give far more money to charity than everyone else. Our entire way of life, including every single advance and amenity that we take for granted, is based around what billionaires and corporations have created for us.
So tell me, when was the last time a lower-or middle-class American did any of that? Tell me when a construction worker or janitor or sales clerk made that kind of contribution to society as a whole? Maybe the “poor” ought to be contributing more. Maybe middle-class Americans ought to be paying a “fairer” share.
But that wouldn’t be right. No one wants that. No one deserves special privileges or breaks. Take a small flat tax rate from everyone, rich or poor, and call it quits. Remove politicians, majorities, and busybodies completely from the business of deciding “fairness” based on opinion. That would be fair.