Is it time to ditch The Income Tax?

Well tax time is here again, and as we all sift through the huge pile of paper we’ve accumulated over the year and attempt to decipher the literally thousands of pages of tax law to make some kind of sense on how much of your economic energy you’re willing to have stolen from you for this go around the sun.  It is a great time to reflect on exactly how effective income tax actually is, why we have it and weather or not it is time to ditch it for something better.

Whether or not you agree with the theory that we need taxes to pay for roads, police, landfills etc. The fact is that income tax is one of the most onerous, bureaucratic, inefficient, Swiss cheese taxes that exist. Just to be able to effectively navigate the snakes and ladders of this system takes years of study and even those that know the system well are still horribly ignorant about huge tracts of income tax regulation that exists.

On top of this it takes a literal army of 40,000 bureaucrats to administer this system, costing citizens literally billions of dollars every year, just to have their wealth confiscated. The income tax system also causes nearly every man, woman and child in the country an undue amount of stress by having to go and deal with this by either getting the forms and doing it themselves, or paying a tax preparation agent to do it for them. Children feel the stress that their parents feel when being forced to deal with this system. As everyone is well aware stress kills and tough I can find no study to support it, I would well imagine that the occurrence of heart attacks must spike during tax season.

Income tax also puts undue hardship on small business. Small business, as the name suggests, often don’t have the resources to have accounting departments, forcing them to deal with the huge amount of work involved in keeping all paperwork in order, filing the forms etc. is far more onerous than should be reasonably required of these entrepreneurs, especially in a society that rightly espouses free enterprise as a cornerstone of it’s philosophy.

As there are other forms of taxation available in Canada, GST being the most notable, we should get rid of the huge paper burden involved in income tax and for now go with GST and import duties as our government’s source of revenue. Income tax provides no benefit to society by and large, costs taxpayers billions per year in health considerations, not to mention the large number of people employed in an endeavor with no beneficial outcomes. Govt. expenses, under as such, would need to be extremely rolled back. In the long run, we need to decide as a society what we want. Do we want nanny state-ism, regulation over every aspect of our daily lives, taxation for programs and “services” which we do not agree with or want and a constant road to less and less personal freedom? Or do we want more responsibility for our own choices, more faith in ourselves and our neighbors, more freedom to act and choose what we see fit and less govt. and arbitrary laws controlling every aspect of our daily lives?

There are better ways to finance the things we need in society and better ways to allocate capital. The book “The Market For Liberty” by Linda and Morris Tannahill describes such a society and I highly recommend reading it with an open mind!

 

about the author

Micah Hoeschele is a small business owner and entrepreneur. He describes himself as an Anarcho-Capitalist and believes society can provide the most freedom and the greatest levels of human achievement when people are allowed to deal with each other in a voluntary, non coercive, free market system.

He currently lives in Calgary Alberta, with his wife, 3 children and dog Bandit.

 

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