Taxing Situation

I have been reading a history of early British America — America before the revolution. It is intriguing. The Americans were a recalcitrant people who really didn’t want to cooperate with the British in protecting their own frontier. Further, they were a bit of a burden to the British who spent hundreds of thousands of pounds over seven years protecting that frontier against the French and Indians in the New World. It was costing the British about £350,000 a year to maintain their army in America even after the war.

Of course, the British had been fighting the French for centuries so that was nothing new. But the fact that they had to protect fiercely independent colonists across the pond against an ancient foe and their new allies was not something they welcomed. And the fact that it cost thousands of pounds and placed the Mother country in debt up to her ears created tensions between Britain and its New World colonies. The solution proposed by Lord of the Treasury George Grenville was to tax the colonists and recoup some of the losses.

The initial tax in 1733 (in the form of a “duty”) was on molasses that came from the West Indies and was used by New Englanders to make rum. The tax was generally ineffective and simply encouraged smuggling in the colonies. But when the sugar tax was levied in 1763, and actively enforced, it began to bring the disparate colonies together as one and to create strong resistance that eventually led to the Revolution. Until I read this book I was unaware of how independent each of the colonies was from the others and yet how the people in the distinct colonies all felt themselves to be British citizens — and therefore privileged above the rest of the world — but not the least bit beholden to the Mother Country for protecting them against enemies. But it was taxation that brought them together and actually helped to create some sense of unity out of the diverse — and very different — American colonies (think: Massachusetts and Virginia who were worlds apart in so many ways and never really got on the same page).

Taxation, especially the Stamp Act, got the colonists all riled up; it was something to be avoided like the plague. That has never changed. We still lump taxes together with death as the two things we fear most and neither of which can be avoided. And it is that attitude that has given birth to the Tea Party and its insistence that there be no more taxes — in the spirit of the early colonists about whom I dare say most Tea Partiers know very little, if anything at all.

The problem is that there is another side to the issue: taxes are essential for the running of the individual states and the country itself whether we like it or not. And as noted by one of my favorite blog-buddies, our country is taxed at a lower rate than almost every other developed country in the world yet we complain the loudest. Perhaps this is part of our inheritance (as noted above, we have a long tradition of complaining about taxes), but it is unseemly and also unworldly. Taxes are essential to the well-being of each and every one of us. As noted by another of my favorite bloggers, our tax money does immense good. Not only are taxes necessary to maintain a strong defense against terrorism (a point that is accepted by almost all) but they are also necessary to maintain social programs that benefit those who are most in need and ultimately make us a stronger nation (a point that is rejected by many).

To be sure there are abuses, as critics are quick to point out. They know — or have heard about — a fellow who takes his student loans and buys himself a new car, or, perhaps, $15,000 worth of weapons that are later used in a shooting in a movie theater. These things certainly happen. But this money also makes it possible for people in need to keep their collective heads above water, to buy food, clothing, and shelter for their struggling families. And we must never forget that. Instead of focusing on the abuses and the waste we can all attest to, let’s instead focus on the immense good that our taxes do to not only those in real need but all of us who benefit from health care and better schools for our children. After all, we are supposed to be a charitable people. We need to alter our mind-set and start to think of taxation not in conjunction with death, but with life itself.

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7 thoughts on “Taxing Situation

  1. Very Interesting post. I would come at the social programs thing from a different perspective, though, in that often in the way the programs are structured they enslave the recipients and the taxpayers who fund them to the government programs rather than make the public independent. In fact, I have perused statistics and have heard that more people are now receiving a government check of some type or another than are paying into the system. I’m doubt the founding fathers ever meant that to be.

    Again, very interesting post.

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