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Taxation and Direct Democracy
The only way that citizens can make sure that politicians do not
raise taxes over their heads it the introduction of facultative
and/or mandatory
referenda about any changes in tax rates or the introduction of new
taxes. Taxation is (next to Liberty) the area where politicians can exert to
most direct influence on citizen's lives. Not for nothing it was questions
of tax that lead to the start of the American War of Independence. So if
Direct Democracy should be involved it has to be in all matters concerning
tax. The threat of citizen action will also be a healthy deterrent to ill-conceived
spending plans and any tinkering with the tax system.
Including all duties, levies, direct
and indirect taxes the average family in the United Kingdom (and
many other 'developed' countries) spends more than half its
earnings on taxes.
Compared to the 'horrible' Middle Ages when farmers were supposed to
be heavily oppressed by their landlords this is a staggering amount
and could be termed a modern form of slavery.
The main reason for this sorry state of affairs is the lack of
democratic consultation of the citizens and the centralisation of
all fiscal decisions in a government where division of powers is
unknown and lobbies and party bureaucracies are not accountable to
the majority of affected taxpayers.
In addition, contrary to the constant affirmation of equal rights as
the modern-day religion the tax laws are highly discriminatory and
arbitrary.
The political
establishment to the left and right admits that there is no willingness to
reduce spending in the bloated public sector. The interests of their clientele
come first and the taxpayer does not have a chance to have a say on this tax
rise - or any other increase in taxes, fees or other forced contributions
exacted by the rulers - as both dominant parties sing to the same
hymn sheet.
Only explicit referendums on the introduction of taxes or changes in tax rates
will prevent this abuse of democratic process.
Parties during election
campaigns and Governments regularly use misleading and false tax and spending
estimates to frighten the electorate.
The only way to bring abusive election propaganda to a halt and reign in
uncontrolled public spending is to give the voters final say over all tax and
spending measures.
Voters should have the right to accept or reject each new tax or change in
the level of tax that is imposed. All the proceeds of the tax should be
earmarked - as much as possible - for spending on particular purposes.
If the citizens have the ultimate say about how taxes are raised, and at what
level, the constant fight over the distribution of tax and spending proposals
would be reduced and a more rational and objective way to reach spending
decisions would be possible.
Even on routine tax laws and spending decisions that were necessary for the
running of government functions on a daily basis and unlikely to be
controversial politicians would be more careful as there would always be the
danger that the citizens would initiate a referendum if the interests of
important segments of society are neglected.
The case of Switzerland shows that a system of
direct democracy and competition between different levels of government and
regions is a useful brake on excessive spending. All three levels of Government
(Federal, Canton and Communities - i.e. towns or villages) set their own taxes
at a level that they think is necessary to finance their spending. This way they
bear the full cost of their decisions. Citizens add an extra brake on the
natural tendency of politicians to overspend as they have the final say on all
major spending decisions. Tax competition between the cantons and communities is
an additional incentive to keep taxes and spending under control. |