Taxes: Avoidance or Evasion

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Regarding the distinction between evading a tax and avoiding a tax – I will concede a legal difference between the two words.  But a moral difference is much harder to discern.  Vice President-Elect Joe Biden’s reference to the patriotic nature of paying one’s taxes addressed the moral dimension of each citizen’s obligation to support his or her country’s many fiscal responsibilities.  A good church member would not spend time figuring out how to avoid tithing.  He would support his church’s mission because it would be the right thing to do.  Why should one’s government deserve less?

 

Regarding tax loopholes, it is true that congress passed them.  It is not true, however, that congress debated them.  Most are passed without representatives knowing much, if anything, about them.  But don’t take my word for it.  Just review Senator John McCain’s many campaign speeches damning the abuse of pork-barrel spending and earmarks.

 

I asserted that salaried folks, who don’t have many loopholes available to them, pay more of what they earn in taxes than others.  My partner in this debate claimed that isn’t true, and then proceeded to prove beyond a doubt that it is.

 

The sales tax is by far the most regressive tax we’ve invented yet.  Tennessee‘s experience provides abundant proof of this.  It taxes the poor most heavily, the middle class heavily, and the rich very lightly indeed.  The reason is simple:  if you spend everything you earn on essentials you will be taxed on everything you earn; if you spend most of what you earn you will be taxed on most of what you earn; and if you spend some of your earnings on taxable items and some of it on investments and savings you will be taxed on only some of what you earn.  Neil Boortz not withstanding, there is nothing fair about that.

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2 Responses to “Taxes: Avoidance or Evasion”

  1. l3rucewayne Says:

    You reference the fair tax and make an interesting point in your final paragraph. But under the fair tax people get back money equal to the amount of taxes they would pay on purchases up to the level of poverty level spending, which creates the effect of the taxes not kicking in until after you spend above the poverty level. And so under the fair tax people who spend all of their money on essentials would in effect not be paying those taxes. Just thought that worth throwing in there.

  2. The Morality of Paying Taxes…. « Unicoipolitics’s Weblog Says:

    […] in the discussion of taxes on this blog, I must respond to some points made by the author of this post.  His post is in response to my previous post which can be found here.  He said Regarding the […]

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