Taxes Have Never Been Fair

The Real Story of Taxes

I am trying to understand President Biden's new program of child payments. I’m not even sure what to call it. The President says it is part of the recovery from the panic of COVID 19. If that’s the case it, should be a limited one-time offer, but it’s not. The program is designed to be permanent. Parents of young children will receive several hundred dollars a month from now on whether they need it or not. The President also claims it is a tax break for the middle class. That can’t be true either because it doesn’t reduce taxes for anyone. The new program will eliminate the existing tax deduction for dependent children increasing taxes for middle class parents. I’m not sure how it ­involves taxes at all. It does, however, give politicians an opportunity to buy votes with your money.

Since the beginning of civilization, taxes have been manipulated to buy popular support. About the time humans developed the capability to record history, kings would attack their neighbors and make them pay tribute. The Romans divided those they ruled by right of force into provinces. Each province was to pay the demanded tribute. Each province was in turn divided into taxable districts, and a tax collector was appointed to collect the specified sum from the people. It didn’t matter how the funds were collected as long as they filled the quota. You may recall that Matthew, one of Christ’s disciples, was a tax collector. The ruling kingdom, however, was exempt from taxation. The people of Rome not only didn’t have to pay taxes, they received free food and other commodities from the provinces. Thus, the more the emperor squeezed out of the provinces the more popular he was with the people of Rome.

A couple thousand years later, kings had changed the name from provinces to colonies, but the system was much the same. Kings were popular at home when they supported the realm with income from the colonies. You will recall the American revolution began as a protest against unfair taxes.

As kingdoms gave way to democratic republics, the government was financed by taxing the people. Ordinary citizens realized the need to fund the government and taxes were relatively low and based either on property or tariffs on imports. As technology allowed governments to monitor transactions, sales taxes become popular for state and local governments. Technology also allowed the government to monitor workers’ wages, and income taxes were initiated to fund our participation in World War I. Then, during the height of the Great Depression, elected officials discovered they could manipulate the tax system to buy votes. Astute politicians used taxes to fund programs that made taxpayers dependent on government. Social Security destroyed the multigenerational family and made ordinary citizens rely on government for their retirement. Social welfare programs, now called entitlements, not only buy votes, but make the recipients wards of the state.

The President’s new child payment program is just another step to redistribute wealth and make citizens dependent on politicians. Giveaway programs are not usually in the best interest of our nation’s future, but they buy short term political advantage. President Biden cares more about his political image than he does about our future.

Frank Watson is a retired Air Force Colonel and long-time resident of Eastern Washington. He has been a free-lance columnist for over 20 years.