Libertarians call 'Tax Fairness Act' unfair

RALEIGH (May 14) – The tax reform plan announced by state Senate Republicans last week is just another charade designed to make people think they are actually reducing taxes, the Libertarian Party of North Carolina state chair said in a statement today.

“Calling it the Tax Fairness Act and claiming it's the largest tax cut in state history is misleading at best,” said J.J. Summerell. “Taxes are inherently unfair. The only difference between taxes proposed by Republicans and Democrats is which special interest group is going to benefit and which is going to pay.”

Here is the full text of Summerell's statement:

The tax reform plan announced by state Sen. Phil Berger is just another charade designed to make citizens think Republicans are actually reducing taxes. Calling it the Tax Fairness Act and claiming it's the largest tax cut in state history is misleading at best.

In fact, it isn't fair and it isn't a tax cut. Senator Berger and the other Republican leaders at their press conference last week probably used the word “fair” hundreds of times.

No tax is fair. Taxes are inherently unfair. Every tax hurts someone. The only difference between taxes proposed by Republicans and Democrats is which special interest group is going to benefit and which is going to pay.

Granted, Senator Berger’s plan moves North Carolina from a system of taxation that taxes production to a taxation system that taxes consumption. This is a step in the right direction, but only a small, miniscule step rather than the major reform that is needed. The individual and corporate income taxes should be repealed immediately. One hundred percent repealed, not simply marginally reduced.

A “revenue neutral” plan that increases the number of things taxed can't be called a tax cut. Nor can it be called “fair,” because it shifts the tax burden onto the backs of those least able to pay.

The truth is, Republicans and Democrats believe the same thing. They insist that only way to fund what they claim are essential government programs is through taxes. Whether the tax is proposed by a liberal or a conservative, the idea is based on one premise: you don't own your money or the fruits of your labor because the State has the right to take what it wants.

Only Libertarians believe that you own the fruits of your labor and enterprise, and that government does not have the right to take it from you. We believe taxation is by its very nature destructive to the economy, especially job creation.

We propose to reduce the need for increased taxes by reducing the size of state government in every way possible. We would use the John Locke Foundation's “Budget for Growth” as a starting point. Ending corporate welfare and state aid to special interests would save over $100,000,000 annually with no cuts to other programs.

Libertarians agree with Senator Berger on one point. We can't fix the broken state tax code by nibbling at the edges. Yet his tax plan does just that. The senator proposes minimal change. Libertarians propose radical change.

North Carolina's tax code is obsolete and oppressive to the working class. Libertarians are working to change that.

Comments

Some good points

except for the recommended solution.

If all taxes are unfair - but are nonetheless necessary - why not go with the simplest and least "unfair" approach? That would be a graduated, progressive income tax.

In the few jurisdictions that have adopted full reliance on consumption taxes, the model has proven itself to be bad public policy. It leads to black and gray markets, fostering an underground economy that results in government not being able to collect the taxes needed to do the few things it should be doing. It is also highly regressive and notoriously unstable.

This

... is why I am no longer, and haven't been for decades, a member of the Libertarian Party. They have many good ideas, but keep tripping themselves up on their Utopian, idealistic "principles".

I'm all for principles, but principles imply a very black and white world. The world I find myself living in every morning is filled with millions of shades of grey (not to mention a few more colorful hues). Black and white, cut and dry, right and wrong just don't get the job done very well.

_______________________________________________

"...the question is not whether we will be extremists, but what kind of extremists we will be."

Martin Luther King, Jr., Letter from Birmingham Jail

Inherent conflict

Senator Berger’s plan moves North Carolina from a system of taxation that taxes production to a taxation system that taxes consumption. This is a step in the right direction.

Nor can it be called “fair,” because it shifts the tax burden onto the backs of those least able to pay.

Those on the bottom of the income scale are unable to "produce" much, so the vast majority of what little wealth they have goes toward "consumption". To shift the system of taxation from production to consumption will shift the burden to the backs of poor. Major logical pothole there.

Lizard Lick Space Alien

Good to know you're still alive and ... um ... well.

: )

Russians have it right?

The Russians also have one of the largest black markets in the world and the Russian mafia has their long tentacles in much of it. I think that is exactly what JP said about the increase in black and grey markets when you have a completely consumption-based tax.

@KG

Don't take the Alien Lizard guy too seriously. Every now and then we see a flash of brilliance, but mostly it's ... um ... kinda crazy. Not dangerous and destructive crazy like the GOP. Just sort of fun crazy.

The Russians also have one of

The Russians also have one of the largest black markets in the world and the Russian mafia has their long tentacles in much of it. I think that is exactly what JP said about the increase in black and grey markets when you have a completely consumption-based tax*KP

You must be watching too many James Bond Movies from the middle 90's about the Russian Mob..They hotfooted out of Russia after Putin took charge years ago,, The biggest black market in Russia today is the Dope from Afghanstan funded by our CIA and guarded by our Military.. The Billioniares 1 % Russian Mob ended up in London after ripping off every known former Soviet State Asset under Yelin and have been suing each other and killing themselves off in London for the past 10 years....The Russian legal State has had Warrents for their Arrest for many years in order to get back the Dudes for trials The Brits gave them English Citizenship under the State Secrets Act.. In short, the Brit Pols were bought off just like American Pols are by our Corporations..

Russia has 9 Billioniares and is 3 rd in ranking among the Nations Billionaries Club..7 do not live in Russia anymore.. 4 live in the USA and one has just bought the New York Nets NBA team and move it to Brookleyn. He also is building the new Madison Square Guarden for a tune of a Billion bucks to house the team and a high ended Apartment Complex and shopping center for the super 1% Rich who want to watch games in their own Apartments.. By the way, this Dude ran for Russian President last year and form his own political party and got only 5 % of the Vote after spending millions.. There is 20 times more individual freedoms in Russia than the USA and the due process of law that the USA has forgot about under both the Repubs and Demos Parties since 9-11-01..