Friday, February 15, 2013

& Taxes

I'm altogether too terrified to talk about death, but I like discussing taxes. It's topic that deserves all the attention it gets.

If money makes the world go round, then taxes are the physics in the equation  They are the gravity, the motion, the velocity. Taxes always get things done. But the things they do isn't always good. Sometimes, they stymie good intentions. Sometimes they drive good people and companies to do bad things. Or simply drive 'em away.

But taxes feel good too. Smooth roads make my ancient car feel young again. New playgrounds, good schools, impressive libraries, quality first responses make neighborhoods fun, safe and interesting. Fun, safe and interesting neighborhoods attract fun, safe and interesting people. Fun, safe and interesting people buy stuff and pay more taxes. The neighborhood street gets swanky new light-poles and the neighborhood school can afford a nurse and counselor.

Of course, when taxes increase, you don't always get what you pay for. Especially at the ferderal level, it can be difficult to see your tax dollars at work. You hear about tremendous waste and inefficiency. Many times the reports are true.

However, while you decipher evidence of bureaucratic waste, do consider that your city was not invaded, your breakfast didn't kill you, your house is structurally sound, a satellite just passed overhead and will recommend you bring an umbrella today, a rover on Mars is snapping photos for you so you don't have to, back on Earth, not every animal is extinct and somewhere in a small lab a government employee is making the next internet/fuel source/medical discovery. Quietly, your taxes are at work.

Conversely, while you may not always get exactly what you pay for when you increase taxes, when you decrease 'em, you always do. Sometimes, this is marvelous. It's money in the bank. But, other times, the mentally ill don't get the care they need. Without that care, someone might hassle you in the street today. Might even shoot you dead. It can be that dramatic. Or it just might be that what used to be a publicly provided service becomes private and profitable.

So, it's all good and bad. Which means the very framework of our current conversation about taxes is all wrong. The arguments are dogmatic. The pledges are insipid. The fear is palpable.

But it doesn't have to be this way. Higher taxes could be the super hero. Lower taxes could be our savior. And this could happen at the same time.

I think it might be easy. Say, you're a business. You're paying taxes, naturally. All the cool ones do. Let's say you decide to start an investigation into sustainable practices. Research into that gets you a tax break. Sharing your research (especially among similar industries) gets you another. Implementation of your sustainability investment provides a massive tax break. Hey, you're helping everybody now. It's appreciated. That extra cash allows you to cut waste to zero. Closing the loop entirely? Okay, no taxes for you. No, really. Thanks.

Meanwhile, the EPA, OSHA, and a host of other agencies are seeing their experts pulled into the private field. It's okay, we need less government now that good corporate governance is incentivized like an X-Prize. Good things are getting done.

Overly optimistic? Probably. But corporations behave like young children. If they start making their beds, they might deserve an increase in their allowance.

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