Taxation With Representation

“No Taxation without Representation!” is one of the commonly referred to causes of the War for Independence.  This cry was largely rooted in John Locke’s assertion that a government forfeited its legitimacy when “any one shall claim a power to lay and levy taxes on the people, by his own authority, and without such consent of the people, he thereby invades the fundamental law of property, and subverts the end of government."

The issue of taxes and spending remained central to the political discussion after the war.  The Articles of Confederacy were purposefully weak in their ability to raise funds, to the point where it was difficult to discharge the debts incurred by the war itself.  Even so, the Constitution originally stated that "No Capitation, or other direct, Tax shall be laid, unless in proportion to the Census" and even then the funds could only be spent "to pay the Debts and provide for the... general Welfare of the United States."

It stands that the best kind of government spending is that which is approved by the majority of the people, with the costs equally shouldered across the people, and the benefits borne by the general people as a whole.

Any time one of those three criteria is compromised, the authority to tax and spend becomes perverted.

Less preferred, but still acceptable is when the benefits are reaped by a few, but those few bear the lion’s share of the costs.  User pays.  This is rare, however, because why would someone who had the ability and desire to pay for something decide to launder their money through the bureaucracy to do so?

No, in most cases special interests want to reap the benefit while forcing others to shoulder the costs.  When the tax-and-spend power of government is no longer paid by the People on behalf of the People, it becomes tantamount to theft by majority (in the case of popular support) or theft by the powerful (in the case of a small but politically influential group).  If history is any indicator, abusing the power of taxation eventually stirs the ire of the populace and undermines the very legitimacy of the government.