A third scandalous aspect of the Romney tax-rate story is that the very people making the tired, tedious complaints that America’s income tax code is “unfair” are those who are primarily responsible for the unfairness. Fairness, or justice, means equal treatment before the law. In taxation, that presents two options: Either tax everyone the same amount or tax everyone at the same percentage rate. There is no principle that defines the “right” degree of progressivity in tax rates; such rates are essentially arbitrary, determined by who holds political power—a “might makes right” calculus devoid of ethical content.
Finally, the most egregious scandal in the story about Mitt Romney’s tax rate is that the discussion about taxation is distracting us from what is, by far, the major problem our elected officials in Washington need to address: out-of-control federal spending. Granted, a flat tax, if not a consumption tax, would be a huge improvement over the current monstrosity that is our 72,000-plus-page tax code. However, we can survive our flawed tax code for decades, whereas runaway federal spending threatens our country’s financial viability in the short run.
Uncle Sam is racing toward a fiscal train wreck that requires a massive cutback of the 75-percent increase in federal spending that has been added over the past dozen years, but neither party is talking along those lines. The Republicans are willing to trim around the edges, whereas the Democrats are digging in their heels against even those token cuts.
Here’s an experiment you can try: Ask any candidate running for federal office this year how he or she would cut $1 trillion in spending. They won’t have a clue. That’s the real scandal of Election Year 2012.
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