Tuesday, September 29, 2009

Chris the Libertarian...sort of

The "Deficit" is a funny thing. I put it in quotations because it's a major issue to the American public, and yet it isn't. Everyone seems to be quite concerned about it, but any measures that could meaningfully reduce it are incredibly unpopular. Any cuts in Medicare or Social Security will piss off seniors, the most dependable voters, any effort to cut military spending will piss off the military-industrial complex, and any effort to raise taxes pisses off conservatives, along with the people who's taxes are being raised. No one really loves to get less from their paycheck, even if they can accept that it is going to worthy things. Among the recent presidential candidates who campaigned on reducing the deficits were President H. Ross Perot and President Walter Mondale (conservatives seem to forget that Ronald Reagan didn't give a flying flip about the deficit). So yes, people are concerned, but it wont make them pry their ample frames from their favorite tan easy chairs during a rerun of the Bill Engvall Show to go do something.

But there are various proposals on ways to raise revenue and maybe reduce the deficit. One that's gotten much attention recently is a tax on soda. I consider myself a civil libertarian, and I would be fine with such a tax. I would be fine with higher taxes on cigarettes, even though I very much oppose any effort to restrict where people can smoke. Also, I'm opposed to the ban on trans fats that was implemented in New York City a few years ago. While this may seem inconsistent at first, there is a reason behind it. I believe the government has wide latitude to disincentivize certain behaviors that may be be harmful and are costing the public great sums of money, and one of the most effective ways it can do this is through taxing. I may be a civil libertarian, but like a good economic liberal I believe the government's power to tax is plenary, as long as it passes Equal Protection muster and ex-post facto rules, etc... However, I do not believe the government should ban things (I must concede they have the authority to do this, I just oppose it). They shouldn't ban smoking, trans fats, sodas, alcohol, prostitution, marijuana, driving without wearing a seatbelt, and many other things that are harmful and a net loss for society, but are so damn fun!...well, driving without a seatbelt is just stupid, but should still be legal since you're only hurting yourself. I take a pretty expansive view of government's role in the lives of people, but I don't think it has a role in stopping people from doing harmful things to themselves.

Government should allow harmful things like smoking, sodas, and drugs, but should also tax them heavily to provide for the health care these people will eventually need. I guess I view government like the bumpers on a bowling ball lane. It's not there to keep you veering from side to side, but it is there to keep you from going into the gutter, and maybe to push you in a certain direction...through taxes.

So levy a tax on sodas. It will probably result in a healthier country, but don't you dare tell me i can't drink them if I want to.

1 comment:

  1. Just a few thoughts.

    One other issue that you might consider is not adding more on to the government's plate. What good are cuts in spending (not that I do not believe that there should be; one that you and I would probably agree on is an end to the ridiculous war on drugs) when more is added on every year.

    This increase in what is spent on every year is one of the reasons I would disagree with your comments on hirer taxes on items like sodas. The government does not need more money it needs the ability to control its spending habits. As it stands now, if we give it more money history shows that we will be in the same place we are now (fiscally) in however many years it takes them to come up with enough ridiculous programs to spend the extra cash on (that arguement applies to both parties).

    Another argument I would pose is that there is a happy medium in which taxes on "sinful items" should be to bring in the most amount of taxes (yes I realize that bringing in more taxes contradicts my previous point, but in reality the government has about as much chance of controlling its spending now as it did in the 1980s when the deal was struck between Reagan and Congress). If you charge to much people stop buying. Yes they are healthier, but you loose a tax base. Also, you create what is effectively a ban. Last you create a black market (or is that a grey market). So there you have it, you have destroyed a tax base, curtailed liberty, and gave the whole thing to enterprising young criminals to run. I will not argue that one can tax to little because I do not believe that it is that governments job to regulate what people buy though the use of taxes. I do however think that it is a greet way to hide how much people are taxed ever day (especially the poor). However, if the government wants to get its bang for its tax it needs to find that sweet spot in which the tax is just low enough not to destroy a tax base (another thought is that when taxes are higher corporations find it easier to rationalize moving production out of the country --you can only stay in business so long as you can sell your product).

    I guess my point is think about the whole picture. Policies, especially taxing policies, have vast consequences.

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