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From: dgh@sun.uucp (David Hough)
Newsgroups: net.legal,net.taxes
Subject: Re: Abuse of social contracts. (tax system)
Message-ID: <1998@sun.uucp>
Date: Mon, 18-Feb-85 21:16:21 EST
Article-I.D.: sun.1998
Posted: Mon Feb 18 21:16:21 1985
Date-Received: Tue, 19-Feb-85 10:48:14 EST
References: <2748@dartvax.UUCP> <445@ahuta.UUCP> <399@lsuc.UUCP> <110@styx.UUCP> <687@amdcad.UUCP>
Reply-To: dgh@sun.UUCP (David Hough)
Organization: Sun Microsystems, Inc.
Lines: 33
Xref: utcs net.legal:1420 net.taxes:618
Summary: 

In article <687@amdcad.UUCP> phil@amdcad.UUCP (Phil Ngai) writes:
>
>What's wrong with using taxes to achieve policy objectives?
>Surely you would agree it is a good thing for the government to
>encourage the use of alternative energy sources? In stimulating
>a new market, the government can either give direct subsidies
>or tax breaks. I don't see much difference. Actually, I prefer
>having the tax breaks so I don't have to deal with as many government
>agencies.
>
> Phil Ngai (408) 749-5720
> UUCP: {ucbvax,decwrl,ihnp4,allegra}!amdcad!phil
> ARPA: amdcad!phil@decwrl.ARPA

What's wrong is that the most important feature our tax system might have
has been lost, and it is not now PERCEIVED as JUST or FAIR.  Economists may
legitimately argue about whether it IS just or fair, but it's pretty
generally PERCEIVED otherwise.  A major reason for this perception is that
the tax code is enormously complex, and those who have the means
need not pay income taxes if they choose not to.
Ordinary working people do not have the means and the system is not
voluntary for them.
	Politicians often pretend that the "loopholes" were some sort
of accidental oversight, but one person's loophole is another person's
device to achieve legitimate policy objectives.  There is scarcely a clause
in the IRC that does not have a vociferous constituency 
whenever anyone threatens to reform it.
	To conclude, a very simple flat tax with no deductions, no credits,
and only a simple per capita exemption would be correctly perceived
by everyone.  Graduated rates would be acceptable too (to me at least)
as long as the simplicity were retained.

David Hough