“This is America, the richest country in the world.” I hate that saying! I hear it often from those on the left, usually in defense of some half-baked plan to care for another down-and-out segment of society or to “give” some other entitlement to “all Americans.” There are two problems with this idea.

First, America is not rich. At least not America as the left usually defines it. You see the left sees the government as the great checkbook in Washington. They don’t understand that the government has no money and no source of producing it. I’m not talking about printing money because they can do that, but those greenbacks are only a symbol of someone’s tax burden. All wealth in this country is created by those who produce products—meaning anything of value: widgets, services, information, et al. The government pays for nothing and provides nothing. All they can do is redistribute wealth by taking it from those who earned it (and therefore deserve it) and give it to those who did not earn it (and therefore do not deserve it). The government does this through coercion. They come to your home or place of business and require that you report exactly how much money you have made and give them a proportional amount. This is acceptable when one considers what the government does appropriately. When the government spends seized money on the military it is protecting all of us from enemies. When they spend this money on police they are protecting us all from those who would steal and kill. Entitlements are a different story.

Government efforts to champion the poor by providing for the have-nots would be fine if they spent their own money, but all their money comes from us. They must first coerce it from the rightful owner before they can give it to another. Of course they take their cut off the top to finance the bureaucracy. This is actually theft because the person taxed loses money that he earned and gets nothing in return. Actually what the government does is far worse than simple theft. Robert Nozik (Nozick, 1974, p. 169) says, “Taking the earnings of n hours labor is like taking n hours from the person; it is like forcing the person to work n hours for another’s purpose.” This forced labor is, in effect, government sanctioned slavery. When you consider the money is given to those who did not work for it you can only conclude that the producer is made slave to the unproductive. Those who work hard to build wealth must work even harder to make up for what the government forces them to provide for those who choose not to work, or not to work as hard.

Second, with our progressive tax system no program benefits all Americans the same. Like I said taxation is appropriate for things that only the government can or should provide. We would not want private armies roaming the land or police working for the highest bidder so the government provides these and must tax to do so. However, when money is taken and nothing is given it is easy to see the wrong that is done. Lately, the problem is another type of entitlement. We are not faced with one that only benefits the poor but it is claimed that its implementation will benefit all Americans. The debate I am speaking of is healthcare. The plan, right now, is to create a government safety net for those without insurance, but the details put forth show a deeper desire to create a government program meant to spread and grow until its tentacles entwine all Americans. The final goal is a one-payer system in which all people will be on the government plan. Many see this as an acceptable use of tax power because those who pay the taxes will participate in the program—getting something in return. Actually, the problem with this view is that only those who work and can afford it will pay for the program that is meant to cover everyone. Those who currently pay for their own insurance and care will continue to do so, but they will send the check to the Federal government along with a hefty additional sum to cover their neighbor. This is not a program for all Americans but one more example of the productive subsidizing the unproductive.

This brings up a major problem to consider. With our progressive tax system, those who produce wealth pay for their own police and military protection and also for the protection of those who do not produce. This is still a subsidy of bad choices. The only fair tax is one that is totally flat and shared by all Americans, rich and poor, big and small alike. Any attempt at a graduated tax system gives higher value to some Americans by taking away from others.

America is not a rich country. Among the American people are rich and poor. Like all nations we only have the wealth produced by our people. Each American is entitled to the wealth he produces and none other.

Works Cited
Nozick, R. (1974). Aarchy, State, and Utopia. Basic Books.