Federal versus state taxation powers and Smith's principles

¶ … Taxes, Direct Democracy and Federalism

A continuing debate that has been occurring is the power of the federal government in relation to the states. This is because both are given specific areas of authority under the Constitution. However, the language is general enough that there is contention about who has what specific powers. To determine this, the judicial system will often rely on case precedent and interpretation of the law. This has caused the overall scope of federal vs. state power to continually shift. As a result, there are various instances which are illustrating how these rulings can affect the way the law is enforced. To fully understand what is taking place requires looking at issues such as: taxes, the use of the National Guard / military forces, the state's right to exercise direct democracy, acts of civil disobedience, the economic system and freedom of speech. Together, these different elements will offer the greatest insights as to how these powers are shifting and which level is the most dominant. ("Principles of Constitutional Construction," 2010)

Taxes

Why do we need state and local taxes? What were Adam Smith's four principles of sound taxation? What do you think makes each of them important?

The use of state and local taxes is designed to provide communities with a host of services (i.e. roads, fire / police and sanitation). The four principles of Adam Smith's views on sound taxation include:

Every citizen should contribute to supporting their local government. This is based upon their ability to contribute.

The tax that each person is paying is certain but not arbitrary.

Each tax should be levied at times when they are convenient for the contributor.

All taxes should take the smallest amounts possible from the people.

What makes each of them important is they are providing a foundation for funding the government. While; not imposing such a burden to hurt economic growth throughout the region. (Lambert, 2009)

Consider the following taxes (cigarettes, sales, inheritance and income). How do they stack up against the four principles?

Cigarettes are considered to be in line with the four principles. This is because: it is not placing a burden on the individual, it is certain, they are levied when someone is buying the product and the amount is small. Sales taxes are considered to be in line with Smith's guidelines by: giving communities / states control over the amount (which prevents it from being a burden), it is certain, it will be imposed when someone is buying various merchandise or services and they are a small amount of total sale. The inheritance tax is considered to be: a burden, it is certain, they are imposed at a poor time and the amount is excessive. Income tax could be considered as: a burden (depending on the individual), it is certain, it will be imposed at a bad time and the amounts are considered to be high. Yet, the tax is also viewed as fair by some individuals. This is because the government taxes the person based upon what they contribute. (Lambert, 2009)

States also get money from non-tax sources. What are problems that arise, especially with vices such as liquor and gambling?

The problem with non-tax sources is that the city or state is encouraging everyone to engage in these activities. This can lead to an increase in crime for select areas. At the same time, these activities do not contribute to an improvement in economic activity (such as: bringing in high paying jobs). Instead, there is focus on anything that is entertainment orientated (which is geared toward these regions). This can cause the states' and communities to run deficits when providing the support for these activities. ("Sin Taxes," 2005)

Give at least two ideas for gaining more control and preventing corruption.

Two possible strategies for eliminating pork barrel spending are to support legislation that will ban these practices. At the same time, there should be a push to enact a Constitutional amendment that will give the Executive Branch the line item veto. These two areas will make it difficult for Congress to place these projects on government spending bills. Moreover, the line item veto will allow specific areas to be removed that are considered to be wasteful.

Who demonstrated civil disobedience? Rosa Parks? Yertle? Mack? Justify your answer fully

The individuals who demonstrated civil disobedience were Rosa Parks and Mack. The way that is occurred, is they wanted to change things in society. Yet, they were refused to do so by: the higher authorities and forced to suffer. Once they finally had enough, is when they rose up against the establishment with a form of civil disobedience. This is when everything changed, as others were inspired by their example. ("Yertle the Turtle," 2000)

Comparative Economic Systems

Consider the common criticism of socialism on the grounds that it discourages individual initiative. What assumption about initiative underlies this criticism? Is this assumption valid? Why or why not?

The criticisms of socialism are based on the belief, in the lack of desire for someone to do something more with their life. This is because there are social support systems in place that are encouraging this kind of behavior. As a result, most people will instinctively have no motivation to do more. (Wolf, 2005)

This assumption is valid. Evidence of this can be seen with social programs such as Welfare. This is designed to help support individuals who are dealing with financial challenges. The problem is that select amounts of recipients will use as a way to live off of the government. (Wolf, 2005)

How might a socialist and a capitalist government differ in its treatment of the problem of unemployment?

Socialists want to see massive amounts of government spending to create new jobs, training programs and provide unemployment benefits. A capitalist is opposed to these kinds of programs and believes that charities / private enterprises can address these issues.

In your opinion, should the government have the responsibility of providing health care for every citizen? Why or why not?

Yes, the government should provide health care. The reason why is because prices are increasing exponentially and the number of uninsured is rising. These factors are a sign that there is very little competition inside the sector. To address these imbalances a government mandate could implement price reforms and ensure that everyone has access to these services.

Is a dictatorship necessary to the existence of a communist society? Why or why not?

Yes, a dictatorship is necessary. This is because the ultimate goal of communism is no government. The dictator is supposed to be the individual who will steer society towards these objectives by: redistributing wealth and moving in the direction of this goal. (Runciman, 2010, pp. 54 -- 86)

Free Speech

Should our collective reverence for the U.S. flag override our commitment to free speech?

No. The reason why is because freedom of speech is the basic foundation of the American democracy. When this is taken away, it will reduce the ability of groups to express their opinions about a host of issues.

Should the government take action to restrict the ways in which national symbols, such as our flag, may be used in protests?

No. This is because these activities will come directly into conflict with the basic ideas that nation was founded upon. Instead, there should be a focus on protecting these principles at all times.