This was the cry of the American colonies in 1765 when the British Parliament passed the Stamp Act. This was the first British attempt at direct taxation designed to raise revenue rather then regulate trade. The American response was an almost complete boycott of British made goods until the Stamp Act was repealed.
Almost 250 years later, is the situation faced by a significant segment of the population much different from that of the Colonists in 1765?
The Constitution gave Congress the power to collect taxes, however for much of our country’s history, excise taxes and customs duties paid for the entire cost of government. Today, the situation is far different. Despite what some groups would like you to believe, the Federal tax burden is not spread uniformly throughout society. Affluent households pay far more than their share of the cost of government. In 2005, the top 5% of taxpayers earned 36% of the total income but paid 60% of the total taxes paid to the federal government. In 1980, before Republican led tax cuts, the top 5% of earners paid 37% of all taxes. Amazingly, cuts in the top tax rates caused the rich to pay more taxes not less. That is not what those groups would have you believe.
When the tax contribution of the middle class is included, the results are even more skewed. Families with incomes above $45,000 represent the upper half of all family incomes. These families, by definition, constitute only 50% of taxpayers but pay 97% of the total tax burden in the United States.
While a representative democracy enables each eligible voter to cast a ballot, keep in mind that only 50% of the eligible voters paid for 97% of the cost of government.
Surely, these facts make a strong case that “taxation without representation” exists in 2009 just as it did in 1765. Taxpayers can not lawfully boycott their taxation obligations as the Colonists did, however they can make it clear to their legislators on a frequent basis who really pays for the cost of government.
When legislators ignore the requests of the taxpaying public as Congress and the Obama administration have since January 20th, taxpayers need to voice their demands more strenuously. This was done on April 15th, during the August recess and again on September 12th. Ultimately it make take the nullification of the healthcare bill by state legislatures to start the process of eliminating “taxation without representation” in 2010.
David Nace was raised in rural western Pennsylvania. Graduated from Penn State University with an Undergraduate degree in Engineering and a Masters degree in Business Administration. He has managed and co-owned a construction company since 1989. Dave is active in the Associated Builders and Contractors organization on the local and national level, and is able to demonstrate the consequences of legislation and policies in concise and easily understood articles.
