April 15 is Tax Day in America! Not exactly a national holiday, but a day of civic significance as the IRS starts raking in the revenue that will be used to fund your government and its multitude of functions. But how exactly are we taxed? Where does all the money go? Who even decided that taxing Americans for working was such a good idea that it should be written into the Constitution? Americans rebelled against England, in part, over taxes, but taxes remain a necessary evil, so in this episode, I explore some the foundational questions related to the how your taxes are calculated, collected and used.
Main topic: Where do taxes come from? Where do they go?
In theory, taxes should be like shopping. What I buy is government services. What I pay are my taxes.
P. J. O’Rourke
The Constitutionality of taxes
Article 1, Section 8, Clause 1
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
Amendment 16
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
The many ways in which you’re taxed
- Income
- Business
- Property
- Payroll
- Inheritance
- Capital Gains
- Excise
- Gifts
- Retirement
- Tariffs
- Tolls
Conversation starters
Should taxation be considered theft?
The spoken and written word (podcasts and reading)
Articles
Podcasts
The last word(s)
The high view:
“Taxes are what we pay for civilized society.”
Oliver Wendell Holmes, Jr., U.S. Supreme Court Justice
The low view:
“What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin.”
Mark Twain