The Case for Higher Taxes on Corporations and the Wealthy

Abstract Tax avoidance threatens stabile society because it undermines government. Taxes buy important, necessary, and desirable services. Most particularly, taxes provide value to the individuals in society who have property. Taxes are needed to support regulation, arguably the most essential role of government. Failure to regulate the activities of society invites unfairness, dishonesty, physical danger, and a lack of security. When collective regulation through government is not provided, strong private parties will nearly always function as government to regulate activities. Professional service providers are generally beneficiaries of regulation. Regulation also protects public health and well-being. It is nonsense to argue that private services are inherently better than public services. It is wrong to use government to gain an unfair advantage for a few at the expense of the many. It is also wrong to cause maldistribution of wealth; to use government to force the moral and cultural values of a minority on the majority; and to enact policies that destabilize democratic government or endanger the environment and the planet. Diversionary tactics that draw attention away from the consequences of tax and regulatory policy are common and should to be exposed as harmful to good government. A system of regulations that define predictable rights and obligations, an educated work force, good management, stable financing, and technological innovation are essential to strong economic growth, as are public investment in education, research, transportation, and communication. Income inequality slows economic growth. Suspicion of government and distaste for taxes are obstacles to economic growth and stability.