The Tool of Taxation

Old hammer during reconstruction of the buildi...

Old hammer during reconstruction of the building in Pleszew. (Photo credit: Wikipedia)

In graduate school a professor of mine often referred to the “toolbox of government.”  The characterization must have resonated with me because I still use it in my own classes almost fifteen years later.  Of course he was referring to the variety of actions that governments at all levels have at their disposal to implement and otherwise enforce public policy.  For our purposes we can narrow the contents of the “toolbox” down to the bare minimum:

  • The power of government to deprive a person of liberty (think incarceration and in the most extreme form, the death penalty)—the hammer.
  • The power of government to deprive a person of property (think real property and money)—the hammer.

Confused?  Don’t be.  Chief Justice John Marshall (1801-1835) is credited with expressing the position that the power to tax is the power to destroy.  In this regard the power to tax is the power to punish those who violate the law, ignore regulations, or otherwise challenge the general welfare—the hammer.  The power to tax citizens and residents, businesses, corporations, is generally available to most governments—from Congress to your local water district.  Check your text books, one of the first concurrent or shared powers listed is the power to tax.  Moreover, taxes are ubiquitous—fees: taxes; assessments: taxes; dues: taxes; levies: taxes; taxes: taxes.  The power to tax is the power of government to deprive.

In the months following the Supreme Court’s decision on the Affordable Care Act (Obama-care) , much will be made of the taxation aspect of the now upheld health care reform package—especially the individual mandate, which requires people capable of paying for health insurance to do so or risk a penalty (tax).  What do you think, is it the most intrusive tax ever devised by government (in this case by democrats)?  Is it a new tax?  Is it a tax increase (even though it only applies to people who don’t buy their own health insurance—and wouldn’t we otherwise call these people free-riders or equate them to people who don’t buy car insurance and drive up all of our rates)?  With all the hammers we get hit with every day, is this the one we’re really going to object to?  Ouch!  I know how to fix it; where’s my hammer?!

–DENNIS FALCON

20 responses to “The Tool of Taxation

  1. Silvia Sanchez

    The small tax increase that comes with “obama care” will provide much needed medical assistance to those that can’t afford health insurance. I think this will have a positive affect on everyone lowering medical costs like medicine. This also means many low income people will be able to have access to doctors which means early detection of deadly diseases.

  2. Aimee Cervantes

    The power to tax now a days is part of everyday life. Without taxation where would the country be? At some point taxation can get a bit exaggerated but mostly it’s done with a positive intent. Obamacare may be getting some negative publicity but like everything there are pros and cons. Taxing those that can afford healthcare and choose not to buy it makes sense to me, but then who decides what income can afford healthcare. What if your employers does not want to provide it, they should be the ones paying the penalty.

  3. I agree with Aimee the power of tax now a day is part of everyday life
    And is just so normal also citizens really don’t do much to actually try
    To stop the increase of taxes maybe because a lot citizen from this generation are a bit less careless of voting and getting involve then before. In my opinion tax can be raise if it is for a great and positive use that will benefit everyone not just some citizens. Indeed I approve with Obamacare. I think having health care for everyone is important and benefits everyone. Is extremely important that everyone is health care cover. Health is one of the most important things in life that should be put in first priority to maintain a save and healthier life style. True those that can afford health care and are provide with should take advantage of it and grasp it and is taxing them more will get them to step up to the game then taxing should be allowed and that goes for employers as well .And those that don’t have the opportunity to have such benefit should be aid and if using tax money have to do the work it should be ok because health come always first then money.

  4. Esau Gonzalez Zuno

    This law is not perfect, but it is a step in the right direction. Millions are going to have access to affordable health insurance without the fear of getting denied because of a preexisting condition. Prior to getting the health insurance i currently have, i was denied because i had smoked for a couple years. Luckily, I was able to get insurance through another company. This of course was because i wasn’t going to cost the company too much money as oppose to someone with a serious medical condition. I couldn’t even imagine the difficulty these people go through when they are continuously getting denied. And this law brings hope to those people. A tax is a good thing in that it makes others pay a penalty for not having insurance, so the rest of us who are complying with the law don’t have to foot the bill. The only problem i see with the tax is some people just don’t have the money to pay for insurance and earn just enough that they are not eligible for assistance. Insurance is expensive and adding an additional $300 to $600 to their already tight budget might not be feasible. Since i have insurance, i like the law. The ones without insurance might think otherwise.

  5. Jaime Navarro

    Oooh, most intrusive tax (in this case by democrats), well that is a little one sided but anyways taxation is a basic need of the federal government. Now whether you want a federal government and what size that depends on you. Whether we are taxed too much (well I am going to say yes and most of you will as well) but compared to other countries (U.S. around 30% and let me tell you there are a quite a few european countries at 40% or more) it seems down right cozy over here.
    “Obama Care” basically makes everyone pitch in for a service that will eventually be rendered. If it allows for lower health care that will remain to be seen, ever since Mr. Kaiser (aka Kaiser permanente) had a nice talk with a republican bloke (uhh.. Ronald Reagan) and said he had a great idea of about health care and how to take it out of the governments hands “HEALTH CARE FOR PROFIT”. This is probably why many americans were going to Mexico and Canda for health care and medications since THEY COULDN’T AFFORD IT. Hopefully this bill will allow a larger pot of money or holdings to make more affordable health plans for families, individuals and small businesses.
    Whether this bill works or not, I don’t know. What I will say is when U.S. spends as much as the next 20 or 26 countries on its so called defense budget yet it populas can’t afford basic medications because big business (pharma) has lobbyist controling our government, I don’t know what to say.
    Closing shot, what’s the old saying if taxes can’t get the economy going, start a war (it’s always good business).

  6. I agree that this tax will do nothing but good for this country. Many people that can’t afford health insurance will now have the ability to receive the care that they need. Paying a little bit more shouldn’t be an issue for someone’s life long health. I only see good coming out of “Obamacare.”

  7. In general I am happy with the comments. A word of advice: Don’t jump on the band wagon by just agreeing with people who posted before you. Each of you needs to find a way to make your comment “POP!” Make a reference to the textbook, a simulation, to show that YOU understand what you are reading/learning.

  8. As Oliver Wendel Holmes, Jr is credited with saying “Taxes are the price of civilization” Truely so..
    Encase youeself in a wet, paper bag and see if you can think your way out of it with a stimulating subject like, “how could we enjoy the freedoms we have without taxes?”
    Of course there would be markedly less pollution without millions of vehicles traversing the tax created Interstates and Intrastate highways. no Highway Patol to issue speeding tickets, no ambulences to pick up our wrecked pieces, no military to attack third world countries to stimulate our economy, nor in the rare cases,defend out borders, no PELL grants, few universities and schools, no airports, and no beer! jk about the beer, there could be microbreweries-just seeing if you were still awake. AND without our US military, we would be at the mercy of horrorific organizations like BLACKWATER. shudder.
    We are all concerned about additional taxes and the straw that broke the camel’s back; historically, many societirs have indeed taxed themselves out of existence. Likely the medical community is not going to substantially lower their price structure, and the big pharm conglomerations will continue to rape the public, so there are many issues to overcome ahead.
    Like many, I cannot afford mdical insurance and worry greatly about my wife. We are forced to live a healthy lifestyle to avoid medical expenditures, but if a major calamity occurred, I could not get medical help for her. An etra tax is worth it to me.

  9. I believe that Obama-care is a good thing because people with need of medical care will receive it. I don’t think this is the most intrusive tax ever devised by government; the No Child Left Behind Act gives more federal intrusion into a state according to our textbook. I’m not sure if this will be a new tax or an increase tax, but if the tax only applies to those who don’t purchase their own medical insurance, then this will be a way for them to pay for it. I also think that because of the Obama-care tax, because people are being taxed they will be more likely to see a doctor more frequently than before, and therefore perform preventative healthcare. I also think that much of the health care money that people spend in other countries because they have lower health care cost, will stay in the pocket of the U. S.

  10. Rochelle MacArthur

    Politics aside, I think this is great! Car insurance is mandatory, I think Health Insurance should be too. What a relief it would be. I would much rather pay a bit per month than to have a hefty bill it could take a lifetime to pay back. Its about time!!

  11. Shivangi Sharma

    I solely believe that this is a good idea. But one thing I don’t agree with is when you stated, “The power to tax is the power of the government to deprive.” I don’t look at it as deprivation, I look at it as bettering our country, considering our taxes go towards our wants and needs. Also, it’s only a tax increase to those who already don’t have health insurance. I am all for Obama-care!

  12. tammey machurski

    Myself being without insurance think it is needed. There are others who have this and thrive within the health care dilemma. I agree that paying a little to end up saving alot will even help with the unpaid bills that we that dont have the money to pay the hospitals for.

  13. Angel Arvizu- The tax will help many people that have low income or are stuggling to survive. I agree the tax will do good for the United states of America which will improve many lives. Many people that can’t afford health insurance will now have the ability to receive the care that they need which is great becasue i am one of those special people that have low income. Paying a little bit may turn heads which have an issue but the positive outcome would be saving someones life or improving health. I see great news coming from of the Obama care which will one day save my life if i would not be able to afford the cost of medical bills or etc.

  14. Taxation might sound to some people, as “the power to tax is the power of government to deprive”. However, I believe what makes America great is being able to get many services that benefit everyone in each community. Without being tax one can wonder where our country might be. Yes, I do agree that there was a time our government system was not grand such as the nineteenth century, were poll taxes were used to maintain the political system and to discriminate against African Americans. However, in 1964 the Twenty-fourth Amendment was ratified which banned any tax or fee as a requirement for voting. As stated in the book Government in America, the Sixteenth Amendment “is the only existing amendment specifically addressing the economy” (Edwards, Wattenberg, Lineberry 52). The Sixteenth Amendment plays a big role in the American life because without it, Americans would not have certain benefits that help us succeed as a country such as public education. Although many Americans complain of having to pay high taxes, taxes are only benefiting us, the American people. As a country we must understand not everything is going to be perfect and sacrifices will need to be made to help our country succeed. Health care is another important factor everyone should have in America. Everyone should be able to live a healthy life style with health care. I do support Obama-care because it can benefit the people who couldn’t afford health care. Any person who can afford health care should take advantage and should be tax for not complying with the law. However, just one question remains, which is, who gets to decide what income falls in the category of a person being able to pay for health care. As a young American it is difficult for me to receive any health care because it is very expensive. Like I have stated before affordable health care will be benefiting many Americans including my family and myself.

  15. Taxes are a good thing, sometimes. It helps a lot of single women with public assistance, Like welfare, foodstamps. I do think its a good idea because some of those women really do need help, some even work two jobs and are going to school. As far as getting taxed for obama-care, I think its kind of dumb because a lot of people work hard for their money and for them to have to pay a tax for everyone to get health care. They would have to pay for lazy people who do not work, and I do think, its the most intrusive tax ever devised by the government.

  16. I agree with Obamacare, since there are taxes for almost everything why not have taxes for something thats as important as healthcare. Some part-time and even full-time jobs don’t offer healthcare to their employees. It’s really hard to find a good job with the way the economy has been, so people will take what they can get to pay the bills and even care for their families. With Obamacare men, women, and their children will all be taken care of with out worrying about receiving high medical bills in the mail. Many people have health problems but won’t get them taken care of because they can’t afford the cost of health care and some of their problems are life threatening, which is a bigger berden on the families because if the person dies then the funeral cost is higher then the medical bill. My sister has had a job for a few years and was never offered health insurance and when she would get sick it would be bad cause she couldn’t go to the dr. She couln’t even go to my grandmas funeral because she was so sick.

  17. This tax it’s simply “insane” how would small businesses survive, they would be obligated to provide medical insurance for their employees or pay a “tax” penalty, also if/when the law goes into full effect I am sure the Medical Insurance Co. will like the government take full advantage and raise their fees, everyone talks about economy getting better but if this here happens it looks to me like it will get worse. I honestly belive that the government just doesn’t know how else to get money out of us, they make up taxes for every single thing we do, it’s sad because it affects all of us that work hard for our money, business owners, employess, etc. Who benefits from all of this if it isn’t tax payers? The government and people that don’t work and collect public aid that sometimes they don’t necessarily need.

  18. As we all know, taxation is part of the daily American life. It is not that big of a surprise for the government to add this taxation, since, as we all know, they have the power to impose tax. I do believe Obamacare is on the right track and it is just taking it’s time to get there. I do not really see this as a new tax since there are already many programs such as Medicare that mostly require a monthly bill. In a way, I agree that if someone is capable of paying off their health insurance, then they should do so. Everyone has the right to medical services, so if this helps people who cannot afford to get the medical attention they need, then this is a good thing. Throughout my childhood, I always had health insurance under my dad’s name because of his job until about three years ago and it has been really hard for the whole family having to adjust and deal with new sicknesses. So from my point of view, programs like these are helpful.

  19. I believe Obama care is going to be something we are forced to pay into like unemployment insurance that some of us would never use or even Medicare that is not for seniors. In some countries in Europe health care is covered universally. This definitely could be classified use by people who are considered “free riders”. It makes me think of the lady in the mink coat tossing around one hundred dollar bills to her kids one day. They were in the grocery checkout and she was handing off large sums of money. When she went to pay she pulled out an EBT card; I could not help but gasp shocked. When I left the parking lot she pulled away in a Mercedes S class, she would is a free rider! How will the incumbents in Congress allow this type of new Affordable Care Act travel into policy? It will be a tax increase we should start feeling all of Obama’s changes within the next several months following this election. Since the Supreme Court is backing Obama’s decision it should be interesting to note that the Judges are primarily selected by the party and president. They just might pass something he is interested in, what will the house rules committee have to say about this is also interesting. If a hammer is in order it might be a sledge hammer or possibly jack hammer in size. Before we start issuing health care it might be wise to decrease the unemployment rate. Many unemployed people have not even been involved in counts and are at their limits with unemployment extensions the last thing the working class needs to be paying for is more people to sit at home and providing their health care on top of it, jack hammer over here please!

  20. Chapter 1
    “The power to tax is the power to destroy”, I love this quote in the article above. I hate to think I’m negative when thinking about government in America today, but I do. The government uses fees or taxes in any which way possible to keep control of citizens. “Approximately one out of every three dollars earned by American citizens goes to pay national, state, and local taxes”,(Edwards, Wattenberg, Lineberry, pg. 8)Taxes are constantly raised here in America regardless of how bad our economy seems to get. By raising our taxes we somehow think it will get us (America) out of debt; but in all realism the people are the ones who are suffering. Reading this article really shows how our government is constantly making new laws or taxes to fix old problems. If we just go back to the source of the issue and change that specific law passed we would not come across such minuet issues turning into such large debates. We should not increase or penalize people for not having health insurance; our society should not have to come to that. Denying someone of medical help is ridiculous. The value of money will never be more then someone’s life. How can we charge a taxation of citizens for not being able to affording medical insurance?? That to me is trying to turn Americans against each other, especially in the medical field aspect. Think of it as a Doctor or Nurse not giving the attention needed to you while you’re dying in the hospital because you do not have insurance. We the people need to work together on the problems and the issues created in America by going back to the root of the problem.

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