Taxes on the Broken Window Fallacy

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A tax is a sum of money demanded by a government for its support or for specific facilities or services levied upon incomes, property, sales, etc. It is also defined as a burdensome charge, obligation, duty, or demand. Every country has this, and everyone must pay taxes.

When a government intervenes to build a bridge, it is supposed to build it with the tax money. A bridge is supposed to make transportation easier and faster. It is a construction that makes many people happy. It is interesting to see that when the bridge is built, nobody thinks about the taxes they paid for the government to build it. People simply applaud to the government, thinking it is finally doing the right thing. That it is using the money for the right cause.

The thing seen is the bridge. The thing not seen is the tax money. However, with the tax money, the thing seen is what the government can do with it. The thing not seen is what the people could have done with it.

According to the mind of the people money conveys authority. In reality money only conveys paper. Nevertheless, sticking to the idea of it conveying authority, then tax money gives the government authority to “control” us. It is, however, an indirect “control”. What they do is choose for us. For example, the government chose to build the bridge, but maybe the people would have chosen a highway. Then, the thing seen is the bridge, and the thing not seen is the highway.

It is not an easy task to eliminate all taxes. Nobody likes taxes, yet nobody does anything to eliminate them. It is easier to let someone else do the work for you, than for you to do it yourself. Notwithstanding, many people think that it would be hard for everyone to come to an agreement with the lack of unity there is in the world. Of course, unity is only achieved when everyone thinks, and feels the same thing. One thing I believe is only achieved when having one religion or God.

Going back to the taxes and the government intervention on them, it is what is seen that has shaped society, but what is not seen is left alone. Ironically, people are still in discomfort.

The Illusion of Money

Freedom from Mammon

The Broken Window Fallacy

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Categories: Economics | Tags: , , , , , | 1 Comment

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