This paper examines the deeply rooted American aversion to taxation, tracing it from general cultural sentiment to specific policy grievances. It discusses the necessity of taxes for public services while arguing that certain tax structures—particularly transfer taxes—impose disproportionate burdens on small businesses and middle-income households. The paper reviews unfair tax legislation, the economic consequences of excessive taxation, and historical parallels stretching from biblical times to feudal systems. It also considers democratic strategies, such as consumption tax proposals, that aim to reduce tax burdens while maintaining public funding. The paper concludes by calling for greater government transparency and public participation in tax legislation.
Americans hate paying taxes. Idioms that place death and taxes in the same category prove this. There are some very specific reasons why Americans do not enjoy paying taxes, and these are examined below. Apart from the mere principle behind this sentiment, there are also concrete and even valid motivations for attempting to evade the obligation to pay taxes. These include reasons relating to government corruption and the tendency of the very rich to evade their own tax-paying responsibilities. Furthermore, according to some, the economy does not benefit from current tax legislation, and this is mainly a result of the corruption mentioned above.
Doubtlessly, taxes are necessary. The government needs funding in order to provide its people with the highest quality of goods and services. Recreation facilities and roads, for example, are maintained by means of taxes. Taxes, while applied for the benefit of society, are therefore not so much an evil as a necessity. One could therefore agree with Johnston in his assessment that taxes are the price for a civilized society. Nonetheless, Americans have a very negative attitude towards this issue, and perhaps not without reason.
The first and most basic reason for a negative attitude towards paying taxes is that taxation takes a large chunk from already strained salaries. The perception is that the rich become increasingly wealthy as a result of the over-taxation of the poor and middle classes. Large companies such as Enron, for example, neglected their tax-paying duties for years without being caught. This exacerbates the already negative feelings people have regarding taxes.
A further perception is that taxes are excessively and unfairly high. An example of this is the issue of transfer taxes. In this case, taxes are levied on property that is transferred at death (estate tax), during life (gift tax), and to grandchildren or other descendants (generation-skipping transfer tax) (Wagner). According to Wagner, these taxes generate little revenue while having severely adverse economic effects. They are therefore an example not only of unfair tax laws, but also of a lack of proper or intelligent tax management on the part of legislators.
"Transfer taxes harm small businesses and wages"
"How flawed legislation deepens public negativity"
"Consumption taxes and democratic reform proposals"
In whatever way one chooses to view it, the only certainties in life are death and taxes. Both are equally unpleasant to consider and equally unavoidable. Taxes, however, at least carry some benefit for citizens. With a democratic style of government, legislation can be improved to increasingly help rather than hinder people in creating a living for themselves.
You’re 33% through this paper. Sign up to read the remaining 3 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.