Steve G.

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The Powers to Raise and to Spend Taxes (Liberal Libertarians Discussion Topic #01)

In Boston Tea Party, Charles Jay, Congress, Corruption, Democracy, Economics, Fraud, History, Law, Libertarian Party-US, Libertarian Politics, Politics, Pork, Spending, Taxation, Thomas L. Knapp, US Government, War on April 15, 2009 at 7:29 pm

The single greatest factor behind the rise and development of the English Parliament was taxation. What very quickly developed, and what lasted until the British Monarchy lost its functional power as a part of government and became a marginalized figurehead position (which happened over the course of the 1800s) was that the power to SPEND tax money was separated from the power to RAISE tax money. Under that system, only Parliament could RAISE tax money but only the Monarch could SPEND tax money. If the Monarch wanted to spend anything (for wars, his houses and mistresses, public building projects, anything) they had to convince Parliament to raise the necessary tax monies and give those money to him 9or her). Likewise, if Parliament wanted money spent on anything in particular, they had to convince the Monarch to agree to spend raised money in such ways. The inherent conflict within the system required negotiation and compromise from both sides. Sometimes one side would be more powerful than the other and would dictate to the other. Likewise, Kings would often not actually spend money as they agreed to. THOSE situations would lead to further conflicts in the future. Sometimes the Monarchs would simply get sick of their Parliaments and would dismiss them and not call another to replace it, but then the King could not raise any money. In those situations, the losers would usually be the common people who were hurt by both sides.

One of the main sources of conflicts between Monarchs and Parliaments (as in ALL nations) was the exorbitant costs of the wars which the Monarchs would want to fight. Because of the unique circumstances of both WWII and the Viet Nam war, Americans now think that wars create profit. They do not. Wars are and always have been burdensome drains on the public coffers. Monarchs want wars for various reasons, but those wars HAVE to be paid for… even in a dictatorship… and, historically, most wars bankrupt their nations as well as the other nations involved. Look at the current situation with our undeclared wars in Iraq and Afghanistan. Let’s not even get into the cost to human life or to property, let us just look at the actual fiscal cost to fight them, clean them up, care for our veterans afterwards, intelligence… all of it. The problem is, in America, because of the way the power to raise and spend tax monies is allocated, the dialogue is usually focused on questioning the patriotism of those who disagree with one side; on attempts to gain power by individuals, parties, factions, ideologies or branches of government; or is hurting our ability to deal with OTHER national priorities by saying we can’t question the money we spend on our wars so we cut the pennies in order to be able to keep throwing away the dollars.

So… in all of the discussion we hear these days about taxes, we are still simply talking about the ‘symptom’ of actual taxation rather than trying to explore the root causes of the actual problems. To ME, the issue is not whether or not taxes are too high, or if they are properly spent, it is that there is no incentive or system in place to DISCOURAGE spending OR raising tax money. If you give the people who have the power to SPEND your money the additional power of determining how MUCH of your money they can take you have the fox guarding the hen house. To me, before we talk about the very real issues of tax codes and policies in America, we need to talk about the basic powers involved in the fundamental issue of taxation.

Here is my personal idea, to start the ball rolling:

01.) ONLY The House of Representatives should have the power to RAISE tax monies. The functions of government which deal with raising and accounting for the expenditures of those monies should be placed under the authority of The House… the people’s house of government. I think that the IRS is the wrong organization for our nation but before it can be dismantled, we need to figure out something to take its place because its ROLE is, and will be necessary. We can NOT destroy something which has such a key role in the operation of our government (whether it SHOULD or should NOT HAVE that role is irrelevant… it does and it must be dealt with as a reality). The House should be completely in charge of our nation’s checking and savings account. This would result in Representatives keeping THEIR jobs in large part based on how they keep taxes low.

02.) ONLY the Senate should have the power to SPEND tax monies. The functions of government which deal with purchasing, contracting, supervising, etc. the expenditures of those monies should be placed under the authority of The Senate. The Senate should be completely in charge of our nation’s checkbooks, passbooks, and ATM cards. This would result in Senators keeping THEIR jobs in large part based on how much swag they can send back home.

03.) The President should be the mediator that coordinates the efforts of the two house of Congress and makes the deals. The President would also be the one who would make sure that all agreements between the two houses on both the raising AND the spending of tax monies would be followed to the letter. The President would be the one who makes sure that every side is honest with the other. The President would also be the one who signs off on all agreements (budgets) and certifies them as satisfying all sides and being in the best interest of the American people.

04.) All three parties involved (The House, The Senate and The Executive Branch) would have complete and unrestricted access to all records, notes, documents, EVERYTHING made or kept by any of the other parties regarding ANY issue regarding or relating to taxes. Further, all finalized, ratified and signed budgets and expenditure agreements shall have full force as LAWS for their durations and any violations of any parts if those agreements and budgets can be prosecuted as such, with the individuals responsible for those violations… ALL individuals at ALL levels up and down the ‘food chain’… being PERSONALLY accountable and liable for those violations (whether it is a Senator, the members of a specific committee, or a clerk who signs a check… EVERYONE is accountable and THUS has the motivation to be honest and above board about all actions and decisions regarding taxes).

05.) All three parties involved (The House, The Senate and The Executive Branch) would create a non-partisan, non-governmental committee or board, to which they will all appoint an equal number of members, which has the power and authority to review and mediate all agreements and violations and to make final and binding non-partisan decisions regarding the same when there are ANY questions about or challenges to finalized agreements or budgets which deal with tax monies and their expenditures. Each state would also get to choose one or two members of this board. Obviously all of the exact details would need to be carefully studied and worked out.

06.) SOMEHOW, The Federal Reserve and The National Bank (and any other such relevant entities) would be brought back under full federal control and incorporated into this who system… somehow.

No matter what our own personal and unrealistic idealistic vision of our government is, taxes are real, they are not going to go away and they ARE necessary. What WE need to do is to try to figure out how to make the system work better and fairer so that it can be a positive factor in our society rather than one which puts us at each others. throats.

Ok, those are my initial thoughts. What can anyone else contribute? How can anyone else make these ideas better or give us different ideas which are better? What can we do with this?

Recommended Readings for people interested in this topic are:

1.)For Good and Evil (Second Edition): The Impact of Taxes on the Course of Civilization
By: Charles Adams (Tax Scholar and Historian, Cato Institute Fellow) http://www.amazon.com/Good-Evil-Second-Impact-Civilization/dp/1568332351/ref=sr_1_1?ie=UTF8&s=books&qid=1224912619&sr=1-1

2.)Those Dirty Rotten taxes: The Tax Revolts that Built America
By: Charles Adams (Tax Scholar and Historian, Cato Institute Fellow) http://www.amazon.com/Those-Dirty-Rotten-taxes-Revolts/dp/0684871149/ref=sr_1_1?ie=UTF8&s=books&qid=1238470625&sr=1-1

Rhys M. Blavier
Romayor, Texas

© 2009 by Rhys M. Blavier

Thank you for reading this article. Please read my other articles and let me know what you think. I am writing them not to preach or to hear myself think but to try to create dialogs, debates and discussions on the nature of our government and how we can build upon and improve it based on what we have seen and learned over the course of the 225 years of The American Experiment.

To discuss this topic, the discussion thread is going on here: http://blavier.newsvine.com/_news/2009/04/15/2688338-the-powers-to-raise-and-to-spend-taxes-liberal-libertarian-discussion-topic-01