Reply to Classmate Post
Your post on your reactions to the high taxes was excellent although the reasons for the reactions was not quite elaborative. It is indispensable that the media and the politicians highly influence the mindsets of the public regarding taxes. The media and politicians can either portray taxation in a positive or negative manner. Taxes are required for the provision of services to the public and its lack results in the need to cut the provision of some services (Alt, Preston & Sibieta, 2010).
However, the claim that higher taxes are necessary for the provision of the services needed is somehow misguided. Higher taxes do not correspond to service provision but rather on the policies that are implemented to guide the use of public resources. People may be taxed highly while the services provided are insufficient or are of poor quality. Low taxes used in an excellent manner may allow for the provision of sufficient and quality services to the public.
The post also fails to consider the concerns of people regarding organized and unorganized interests. The concern of how taxes that have already been paid are used is of critical concern. High taxes without the presence of electoral incentives that will prevent misappropriation of public money is at the core of the interests that various people have. Moreover, there is a conflict between the public and the government. According to Alt, Preston and Sibieta (2010), a majority of people suppose that the government’s decision makers use the money on personal interests.
Assuming that there is proper use and there exist excellent electoral incentives to prevent misappropriation of public fund, I would only be concerned with high taxes if they affect the low-income group. It would be fair if high taxes were impacted upon those in the high-income class as it would help prevent joblessness and is deemed fair (Thompson, 2012).
Alt, J., Preston, I., & Sibieta, L. (2010). The political economy of tax policy.In stitute of Fiscal Studies (Hrsg.), Dimensions of Tax Design: The Mirrlees Review, Oxford (im Erscheinen).
Thompson, J. (2012). Raising Revenue from High-Income Households: Should States Continue to Place the Lowest Tax Rates on Those with the Highest Incomes? (No. revenue_peri_march5). Political Economy Research Institute, University of Massachusetts at Amherst.