Tax Cuts Are Theft.

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Ben Franklin famously said that nothing is certain in this world except death and taxes.

 

But in our modern age, that might have to be amended to read, “death and tax cuts.”

 

These days, lawmakers on both sides of the aisle can’t figure out how to govern without continually cutting taxes – and invariably the beneficiaries of such largess are the rich.

 

No one likes paying taxes.

 

You do a job, earn money and have to give a portion of it to the government.

 

But no one likes going to the dentist, either. Yet it’s something most adults do because we understand its necessity. We know that ignoring basic dental hygiene and avoiding regular dental check-ups will most likely result in halitosis, mouth pain and the eventual decay of our teeth.

 

There are similar societal problems with tax avoidance, but we’ve been tricked into willful ignorance.

 

The rich have paid for an army of economists, libertarians and other would-be thinkers to come up with justifications for avoiding taxation as much as possible.

 

It’s completely disingenuous. This is prostitution as philosophy. It’s whoring out one’s mental faculties to come up with a smoke screen behind which the wealthy can get away without paying their fair share.

 

The idea basically comes down to this: taxation is theft.

 

The government has no right to tax its citizens because it only gets rights from the consent of the governed. People can only give the government rights they already posses. Since they don’t already have the right to tax each other, they can’t give that right to the government.

 

It’s pure sophistry.

 

It imagines a mythical world without government and then tells a story about how that government got its power. But few of us have ever lived in a world without government. Neither did our parents or grandparents back through the mists of prehistory. In fact, it is hard to conceive of a time when people existed with no social structure at all from which individuals could then cede rights to a collective group.

 

And once government exists, each individual citizen owes it a debt. We owe it for all the public institutions from which we benefit. If we went to public school, for instance, we owe it for our education. Even if we were educated privately, we owe it for being able to live in a society where most people are educated since the great majority of those people received that education from public school.

 

It only takes a moment of reflection to see the complex web of benefits every person receives from society that come from some public services. Think of the inventions funded at least in part by government investment. Think of the safety we enjoy due to law enforcement and the military. Think of the roads and infrastructure that allow us to live at a high standard.

 

These are all provided by government, and no matter how rich or poor you are, you have benefited tremendously from being a part of it.

 

As such, you owe that society a certain portion of your income to help support this system.

 

It’s not exactly complicated. But certain economists make it complicated in a cynical shell game while their masters getaway without paying their debts.

 

And when they do, who has to make up the difference? You do!

 

It’s not taxation that’s theft. It’s tax avoidance and – often – tax cuts.

 

No one gets rich because they’re inherently better than others.

 

A person worth $500 million is not 500 million times better than a person worth $1. They are both people and equally as valuable. Nor does income equate to how hard someone works. Many billionaires spend their days lounging around the pool drinking piña coladas. Many poor people spend their days scrubbing floors and toilets. The biggest difference between the two is luck.

 

The wealthy most often are rich merely because they won the lottery of birth or their business ventures succeeded due to pure chance. And even in the rare instances when people made a lot of money because of their intelligence or savvy, that doesn’t justify them being so unequally rewarded by our society compared to those of us without such talents.

 

If you judge a person solely on his/her bank account, you misjudge the majority of the population.

 

Some policymakers will acknowledge these points but still insist on tax cuts based on misconceptions and/or lies about how economies work.

 

They’ll say the United States already has some of the highest taxes in the world. We need to cut taxes to be competitive.

 

However, this is not true.

 

In 2014, total US tax revenue equaled 26 percent of gross domestic product (GDP) – well below the 34 percent average for developed countries, according to the Organization for Economic Co-operation and Development (OECD).

 

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Of all OECD countries, only Korea, Chile and Mexico collected less than the United States as a percentage of GDP. In many European countries, taxes exceeded 40 percent of GDP. But those countries generally provide more extensive government services than the United States.

 

Some will argue that tax cuts are necessary to boost the economy. However, we have countless counterexamples to this popular fabrication. For instance, when President George W. Bush cut taxes from 2001 – 2007, the average annual growth rate was far below the average growth rate for any other period after World War II. In fact, only corporate profits experienced rapid growth. Over all, this expansion was among the weakest since World War II.

 

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In short, the US is doing a terrible job providing every citizen with the benefits of our society. We are disproportionately rewarding the rich while forcing the rest of us to pay for the services from which we all gain. Moreover, other countries provide even more bang for that buck.

 

Now this doesn’t mean that the government should tax us all into the ground.

Nor does it mean that the government should spend our tax dollars willy-nilly.

 

Taxation needs to be fair and spending needs to be regulated.

 

But constantly cutting rich people’s taxes is immoral. It is unfair to the majority of people making up the difference and struggling to survive when government services lag behind need.

 

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Our public schools are suffering under strategic disinvestment. Especially in poor neighborhoods that often disproportionately serve people of color, public schools cannot keep up with children’s needs. They aren’t providing an equitable level of service with those schools in richer, whiter neighborhoods.

 

Our policymakers try to solve the problem with charter schools, vouchers, standardized tests and Common Core. And the results have only been a worsening situation.

 

The real solution is simple – increased funding through fair increases in taxes on the wealthy.

 

Tax cuts are popular, but every time we let the rich get away with paying less, we have to either take more from the poor or take the knife to public services.

 

This affects the poor immediately in the form of reduced services, but it affects the rich, too. They have to live in a world where the majority has less – this means increased crime, increased drug abuse, increased ignorance, etc.

 

As a society, we must get beyond the selfish urge to look out only for what seems best for ourselves and our immediate friends and families. We must look out for our entire society. We must look out for the needs of everyone in it.

 

Otherwise, when we fall for these economic fallacies, we’re only stealing from ourselves.

Standardized Testing Creates Captive Markets

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It’s easy to do business when the customer is forced to buy.

But is it fair, is it just, or does it create a situation where people are coerced into purchases they wouldn’t make if they had a say in the matter?

For example, school children as young as 8-years-old are forced to take a battery of standardized tests in public schools. Would educators prescribe such assessments if it were up to them? Would parents demand children be treated this way if they were consulted? Or is this just a corporate scam perpetrated by our government for the sole benefit of a particular industry that funnels a portion of the profits to our lawmakers as political donations?

Let’s look at it economically.

Say you sold widgets – you know, those hypothetical doodads we use whenever we want to talk about selling something without importing the emotional baggage of a particular product.

You sell widgets. The best widgets. Grade A, primo, first class widgets.

Your goal in life is to sell the most widgets possible and thus generate the highest profit.

Unfortunately, the demand for widgets is fixed. Whatever they are, people only want so many of them. But if you could increase the demand and thus expand the market, you would likewise boost your profits and better meet your goals.

There are many ways you could do this. You could advertise and try to convince consumers that they need more widgets. You could encourage doctors and world health organizations to prescribe widgets as part of a healthy lifestyle. Or you could convince the government to mandate the market.

That’s right – force people to buy your products.

That doesn’t sound very American does it?

In a Democratic society, we generally don’t want the government telling us what to purchase. Recall the hysteria around the Obamacare individual mandate requiring people who could afford to buy healthcare coverage to do so or else face a financial tax penalty. In this case, one might argue that it was justified because everyone wants healthcare. No one wants to let themselves die from a preventable disease or allow free riders to bump up the cost for everyone else.

However, it’s still a captive market though perhaps an innocuous one. Most are far more pernicious.

According to dictionary.com, a captive market is “a group of consumers who are obliged… to buy a particular product, thus giving the supplier a monopoly” or oligopoly. This could be because of lack of competition, shortages, or other factors.

In the case of government mandating consumers to buy a particular product, it’s perhaps the strongest case of a captive market. Consumers have no choice but to comply and thus have little to no protection from abuse. They are at the mercy of the supplier.

It’s a terrible position to be in for consumers, but a powerful one for businesspeople. And it’s exactly the situation for public schools and the standardized testing industry.

Let’s break it down.

These huge corporations don’t sell widgets, they sell tests. In fact, they sell more than just that, but let’s focus right now on just that – the multiple choice, fill-in-the-bubble assessments.

Why do our public schools give these tests? Because peer-reviewed research shows they fairly and accurately demonstrate student learning? Because they’ve been proven by independent observers to be an invaluable part of the learning process and help students continue to learn new things?

No and no.

The reason public schools give these tests is because the government forces them. The Elementary and Secondary Education Act (ESEA) requires that all students in grades 3-8 and once in high school take certain approved standardized assessments. Parents are allowed to refuse the tests for their children, but otherwise they have to take them.

It wasn’t always this way. When the act was first passed in 1965, it focused almost entirely on providing students with equitable resources. That all changed in 2001, with the passage of No Child Left Behind, a reauthorization of this original bill. And ever since, through every subsequent reauthorization and name change, the federal law governing K-12 schools has required the same standardized testing.

The testing corporations don’t have to prove their products. Those products are required by law.

It’s one of the largest captive markets in existence. That’s some 50.4 million children forced to take standardized assessments. The largest such corporation, Pearson, boasts profits of $9 billion annually. It’s largest competitor, CBT/ McGraw-Hill, makes $2 billion annually. Others include Education Testing Services and Riverside Publishing better known through its parent company Houghton Mifflin Harcourt.

If many of these companies sound like book publishers, that’s because they are or their parent companies are. And that’s no coincidence. It’s another way they bolster their own market.

Not only do many of these testing corporations make, provide and score standardized assessments, they make and provide the remedial resources used to help students pass.

So if your students are having difficulty passing the state test, often the same company has a series of workbooks or a software package to help remediate them. It’s a good business model. Cash in before kids take the test. Cash in when they take it. And if kids fail, cash in again to remediate them.

Ever wonder why our test scores are so low? Because it’s profitable! The money is all on the side of failure, not success. In fact, from an economic point of view, there is a disincentive to succeed. Not for teachers and students, but for the people who make and grade the tests.

But that’s not all.

Once you have a system in place, things can become static. Once districts already have the books and resources to pass the tests, the testing corporation has less to sell them, the market stagnates and thus their profits go down or at least stop growing.

The solution once again is to create yet another captive market. That’s why Common Core was created.

These are new academic standards written almost exclusively by the testing corporations and forced on districts by federal and state governments. Under President Barack Obama’s Race to the Top initiative, $500 million in federal education grants were tied to adopting these new standards. States were coerced to push Common Core on their districts or else lose out on much needed funding.

This resulted in the need for districts to buy all new materials – new text books, new workbooks, new software, etc. It also required the states to order brand new standardized tests. So once again the testing industry cashed in at both ends.

And these tests were more needlessly difficult so more children would fail and need costly remediation.

Was there a pressing academic need for these new standards? Was there any evidence that these standards would increase student learning? Were there even any independent studies conducted to attempt to prove a need?

No. This was a total money grab. It was naked greed from one industry completely enabled by our lawmakers at the federal and state levels.

Republicans made noises against it, and some still do. But consider this – the overwhelming majority of state houses are controlled by the GOP. They have the power to repeal Common Core at any time. Yet almost none of them did or do.

Ask yourself why. It has nothing to do with the Democrats. Republicans are owned by the same masters as the so-called liberals – these same test corporations.

You have to understand that our government is no longer ruled by the principle of one person, one vote. Money has become speech so wealthy corporations get a huge say in what our government does.

If an industry gets big enough and makes enough donations to enough lawmakers, they get the legislation they want. In many cases, the corporations write the legislation and then tell lawmakers to pass it. And this is true for lawmakers on both sides of the aisle.

Standardized testing and Common Core are one pernicious example of our new captive market capitalism collapsing into plutocracy.

Our tax dollars are given away to big business and our voices are silenced.

Forget selling widgets. Our children have BECOME widgets, hostage consumers, and access to them is being bought and sold.

We are all slaves to this new runaway capitalism that has freed itself from the burden of self-rule.

How long will we continue to put up with it?

How long will we continue to be hostages to these captive markets?