Congresswoman Alexandria Ocasio Cortez’ famous (or infamous) “Tax the Rich” dress provided the perfect opportunity for discussion regarding taxation. Changes to the tax structure are popular themes during elections and when trying to gain media attention, but they lose momentum when it comes time to govern. A change in taxes could alter an elected official’s base of support and therefore changing the tax structure is not worth the political risk. It’s easier to just spend and let someone else figure out how to pay.
This does not have to be the case. Like any change, blowback can be mitigated by having a fair and transparent system in place that all are made aware of. Any tax, but particularly a new tax or a change to the tax structure, should flow from these four principles: Neutrality, Transparency, Simplicity, Predictability. These four principles will help ensure a just system is implemented and will lead to a more informed debate about what ought to be done and why. It can also help depersonalize and depolarize the debate if we focus on first principles rather than sound bites.
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