Robbing Peter to pay Paul

Some are against Direct Democracy because they fear that poor people, who outnumber the rich, will vote for more government welfare services for themselves and higher taxes for the rich.

Taxes Funding for government activities does not have to be provided by an income tax and was not provided by income tax before 1913. Using fiat currency for public works (schools, hospitals, research, roads, transportation) would, at worse, be a flat tax on everyone, wealthy and poor, insofar as fiat currency can cause inflation. However, inflation is a low risk if fiat funds are used solely for capital improvements and research. Implementing trade tariffs is another way for the government to raise money for operations instead of taxing the people. Levying Consumption Taxes makes only those who use government services pay for them. The elimination of the Income Tax on Wages would be one way of preventing people from voting for services that benefit themselves at a cost to others.

Welfare A number of changes to our welfare system could be made to prevent a Robinhood government and still provide for the poor. Workfare, government jobs providing services for the state and public good, could replace welfare checks for the poor. Workfare jobs could also help provide food for the poor and housing for the poor. Prison inmates, who are currently forced to work for private industry at low wages, could instead provide food and other services for the poor, mostly benefiting their own communities. Charities for the poor could provide further help if the government altered Inheritance Tax and Exemptions for Charities.

But most importantly, government measures that tend to create economic disparity could be eliminated. These include the Federal Reserve banking system,  corporate taxes that hurt small businesses, and regulations that hurt small businesses.


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