Sealing the Ceiling
May 23, 2023
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Politicians and the media say an unraised debt ceiling will cause an economic disaster. Put succinctly, unless the current ceiling rises, the sky will fall.
Issue: Taxation
Principles supporting position:
- Free enterprise
- Freedom
- Stewardship
- Limited government
- Protect the vulnerable
- Equality
- Transparency
Basis for federal government role in the issue:
Constitution Art. I, Sec. 8: “Congress shall have Power To lay and collect Taxes...to pay the Debts and provide for the common Defence and general Welfare of the United States…”; 16th Amendment to Constitution: “Congress shall have power to lay and collect taxes on incomes, from whatever source derived…”
Principle Based Position
This is another complex issue as to which many principles must be balanced, with the optimal result as follows:
- Only impose taxes as necessary to pay federal debts and fund essential and properly-budgeted government services (e.g., infrastructure, disease prevention and control, national defense, environment, protecting the vulnerable, foreign relations, legal system, ensuring the future)
- Wealthy people should pay higher tax rates than poor and middle-class people
- Low taxes on individuals and businesses are good for our economy
- An efficient federal government can do more good with less tax revenue
- Balancing the federal budget and minimizing the federal deficit are important goals
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How high should federal income tax rates be? Only as high as necessary to pay the nation’s bills. The same is true for estate taxes, although there is something more to be said for taxing the estates of wealthy people instead of raising corporate or individual income taxes.