Taxes are necessary in a modern country.

There, I said it. I used to believe that all taxes were theft, unconstitutional, etc. But since our country has moved more and more into technology and quasi-socialism, there really is no turning back. Our high tech world has become very expensive, with most people considering certain things as ‘human rights’ and inequality has diminished the feasibility of ‘every man for himself’, if it was ever a thing.

The world has changed. The fact is that every man for himself may have worked somewhat when America was first founded and land was plentiful for farming and we could raise our own food and build houses from trees. Even then, people helped each other in many ways and shared burdens. But it’s not like that now. Our clothes are made in foreign countries and food is made in factories from ingredients that are sourced all over the world. Our houses are made of plastic and we have cars, not horses and buggies. We all use the internet and cell phones. We expect medical care to be affordable and available. And we don’t usually share burdens with our next door neighbors.

We want to live in a safe country. Currently property theft crime is rising and that is not just because of lax enforcement of laws. It’s because people are desperate. Should the government just allow shoplifting and not prosecute porch pirates and car thieves, or should they focus more on causes of crimes such as the high cost of living? I’m not justifying crimes. I’m saying crime gets worse when people are desperate.

I have thought about this issue a lot and when you think of local, state, and federal governments and the services they offer to the public, you will see that certain taxes are necessary. Nothing is free. Could the system be improved, and politicians less corrupt, sure! But that doesn’t mean all taxes are theft.

Taxes redistribute income which I always thought was bad. But in a country were some people make $400 a week and some make $400 a minute, some redistribution is necessary due to the way prices tend to rise along with the wealth of the upper class. Capitalism has failed at providing products and services that all classes can afford.

Part of the reason is that workers, materials, and transportation of such goods have to be paid for. So don’t expect low prices AND quality goods and higher wages. It is a conundrum only solved by income redistribution, as far as I can see. Charity can’t make up that gap anymore. So unless you think the working poor are less than human, some do, then you can see why taxes are needed to provide a safety net, as well as services that all citizens benefit from such as law enforcement and roads and dams and schools.

The current system of tax credits to the working class is one way the government supplements income. The other more well known welfare system of food stamps, housing subsidies, and Medicaid is not available to as many people. Tax credits encourage working and being responsible. They are actually better for the person than outright payments. This system could be improved and the federal government has been increasing tax credits for years now. In effect, tax credits are a redistribution of taxes collected from other taxpayers.

Lastly, I advocate for financial literacy and education on investing so that all people have the knowledge they need to grow wealth. True freedom isn’t free. A country where poverty is growing will eventually become unsafe. And sharing is just the right thing to do.

Have you ever thought about taxes this way? What can you add to the discussion? Do you see any alternatives to taxes? Does this topic trigger you? Please let me know your thoughts in the comments.

The following is an essay I told ChatGpt to write about why charities and voluntary giving cannot replace taxes. The preceding section was all me. (Sorry about all the bold letters. Not sure why ChatGpt does that! )

Why Taxes Are More Practical Than You Think

Nobody likes to pay taxes. Seeing that deduction on your paycheck or getting that annual bill from the IRS isn’t enjoyable. Some people argue that “taxation is theft” or suggest we could rely on private donations and charities instead of government spending.

There are, however, several practical reasons why taxes make sense. These reasons are less about ideology and more about what actually works.

Economies of Scale Taxes allow the government to provide public services on a large scale. This means they can get better prices, spread out costs, and avoid duplication. Think about roads and highways. A charity wouldn’t be able to raise enough money to build an entire interstate system. The same goes for public water systems. These projects require large, coordinated investment, which taxes make possible.

Universal Coverage Taxes ensure that everyone benefits from essential services. Public schools, fire departments, police, libraries, and healthcare programs are available to everyone, not just those who receive help from charities. Charities often do great work, but they have limited reach. They might focus on specific groups or regions, while taxes fund services that everyone can access.

Consistency and Stability Charitable giving can be unpredictable. When the economy struggles, donations often decrease. But services like healthcare, education, and public safety are still needed, regardless of economic conditions. Taxes provide consistent funding so that programs like Social Security, Medicare, and public infrastructure can keep operating no matter what.

Accountability and Oversight Public spending comes with oversight and transparency. Government agencies have to report how they use tax money and are subject to audits and reviews. While some charities are efficient and transparent, others spend a significant amount on overhead, fundraising, and salaries. Taxes come with built-in accountability, even if the system isn’t perfect.

Collective Responsibility Taxes ensure that everyone contributes to essential services. It’s not about punishing success; it’s about sharing the cost of things we all benefit from, like firefighters, police, and sanitation services. If funding relied solely on donations, services could suffer during shortfalls.

Big Projects Need Big Funding Some projects are too large for charities to handle. Public transit systems, national defense, and disaster response require resources and coordination that only a government can manage. Taxes make these large-scale projects possible. Crowdfunding a new airport runway or military defense simply wouldn’t work.

Reducing Inefficiency and Duplication Government services can be centralized and streamlined, reducing duplication. For example, a public healthcare program can efficiently cover millions of people. In contrast, multiple small charities might overlap, waste resources, or leave gaps in coverage.

Charities Have Their Limits Charities, while helpful, have limitations. They can be selective about who they help, focusing on specific groups like veterans or children. Government programs funded by taxes are often more inclusive and serve a broader range of people. Additionally, some wealthy individuals use charities as tax shelters, meaning donations don’t always go where they’re most needed. Charities also depend on constant fundraising, which can be inefficient and inconsistent. Taxes provide steady funding without these challenges.

Taxes Aren’t Perfect, But They’re Practical Taxes may not be perfect, and there’s always room to improve how funds are used. But for funding essential services, taxes are more practical than relying on donations. They provide economies of scale, universal coverage, consistent funding, accountability, collective responsibility, the ability to fund large projects, and broader support compared to charities. Charities fill in the gaps, but taxes keep society running smoothly. At the end of the day, taxes are how we invest in each other.