Tax’s philosophical purpose: redistribution of wealth

Professor Christoph Schumacher
National Business Review
31 October, 2022

Tax is a little word that triggers all sorts of emotions. “Why do I have to pay taxes? Why so much? Is it fair that I pay more than others who don’t work as hard? Imagine how much more money I would have in my back pocket if I didn’t have to pay taxes.” 

We pay taxes so the government has a source of income to finance investments in physical, social, and human capital. But there is also a more philosophical purpose: redistribution of wealth. Believing in some form of equity (rather than equality), we take from those who have more and give to those who have less. 

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