http://finblogs.24.com/ViewComments...8&blogid=4fffc2bb-0e59-455a-aa70-528df810ea38
I agree.
Why our current 'Democracy' does not work.
2:05PM, Tuesday, 21 Apr, 2009
The nature of 21st century politics is that our office seekers win continual re-election, not by preserving the peace and protecting people's basic rights , but by granting privileges, subsidies and pork barrel programs to favored segments of the people.
This is known as the "big tent" philosophy of governing. It means that political parties win elections by gathering numerous disparate factions of voters in under one large tent. They do this by promising to grant all of the factions something that they want: welfare payments for lower income groups, loans and price supports for corporations, subsidies for farmers and artists, pork barrel bills for local communities, ever-increasing funds for educational, energy, housing, and commerce bureaucracies, etc. Since government has no money of its own, it taxes the necessary money from society's productive citizens in order to become the grand benefactor of all its favored factions.
This is the modern game of social welfare politics. Our politicians basically buy their office and power. All parties play this game in order to be elected and re-elected. And no one ever challenges the game's fundamental premise -- that government has the right to confiscate some people's earnings to gratify other people's needs and desires.Thus, they end up contesting only as to where all the confiscated wealth is to be spent, never on the premise of "wealth redistribution" itself.
A uniform tax rate system must be proposed, fought for, and enacted into law. Until this is done, the social welfare game of "tax and spend, elect and re-elect" cannot be reformed. Ever-expanding, centralized government cannot be stopped.The reason why abolishing progressive income tax rates is so important is because there would then be no incentive for voters to try and gain their life's status by relentlessly increasing government spending, i.e., by redistributing wealth from the pockets of their neighbors.
Progressive tax rates are the major cause of explosive government spending because they create large constituencies of voters that pay zero taxes and equally large constituencies that pay next to zero taxes. Thus, they spawn a "something for nothing" voter mindset. An irresponsible electorate then evolves to demand a steady expansion of government services. This is one of the cardinal laws of economics. If government benefits are free (or nearly free), demand for them will be infinite. At present a small minority of our population, say 30%, pay all the taxes, while the remaining 70% pay nothing.
In a uniform tax system voters would then have to pay for all government subsidies and pork barrel programs proportionately out of their own pockets, they would lose their overwhelming desire for such subsidies and programs. Voters would then begin to favor politicians who advocate "reduction" of government instead of its "constant expansion" because this is the only way they could get their own taxes reduced and more freedom into their lives.
Liberals and me-too conservatives will naturally attack any genuine equal-rate tax as unfair to the poor people. So if a floor is to be established under which no one will have to pay the tax, i.e., an exemption for those under the poverty level, then a provision should be included in any equal-rate tax bill stating that those who are exempted from paying are also to be excluded from voting. After all, we deny children the right to vote. Why do we do this? Because they are not mature enough to vote responsibly. The same principle applies to men and women who are exempt from taxes; they will never vote responsibly. They will possess "infinite demand" for government services.
Liberals will, of course, protest vehemently upon hearing such a proposal; but if one thinks the issue through, he will see that it is really the only solution if a large segment of voters is going to be exempt from paying taxes. There is no other way to stop infinite demand for government services unless everyone who casts a vote has a stake in doing it responsibly.
The Fool
Reference : http://www.afr.org/Hultberg/041505.html
I agree.