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Old 11-19-2012, 17:36   #15
GratefulCitizen
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Join Date: Aug 2007
Location: Page/Lake Powell, Arizona
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Taxes (with a fiat currency) aren't the true tax burden.
Spending is.

Here's a hypothetical to explain it:
The federal deficit has been running about $1 trillion.

Suppose, by some miracle, the federal budget got reduced next year down to $1 trillion total.
Suppose, also, that the federal government collected $0 in taxes next year.

The deficit would still be $1 trillion, but nobody would pay taxes.
Would this mean there is no tax burden?

There would still be a burden of $1 trillion.
All of those goods and services "bought" by the government were, in fact, confiscated by fiat.

Taxes aren't what matters.
Spending, as a percentage of the economy, is what matters.

<edit>
Concerning the unintended consequences of taxes and subsidies:
http://scottgrannis.blogspot.com/201...raps-poor.html
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Last edited by GratefulCitizen; 11-19-2012 at 17:44. Reason: added link
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