Principles of Taxation for Elected Officials
October 2008
With Washington facing a projected $3.2 billion budget deficit (the difference
between growing revenues and even faster projected spending growth), the
temptation exists for elected officials to close the budget gap with tax increases.
Already policymakers are being encouraged to enact a “temporary” sales tax
increase. Before any conversation about raising taxes can occur, however, state
officials should first agree to a set of guiding principles on taxation.
The proper function of taxation is to raise money for core functions of
government, not to direct the behavior of citizens or close budget gaps created
by overspending. This is true regardless of whether government is big or small,
and this is true for lawmakers at all levels of government. Many lawmakers think
of the tax code as a way to penalize “bad” behaviors and reward “good” ones.
They have sought incessantly to guide, micromanage and steer the economy by
manipulating the tax laws.
Taxation will always impose some damage on an economy’s performance, but that harm can be minimized if policymakers resist the temptation to use the tax code for social engineering, class warfare and other extraneous purposes. A simple and fair tax system is an ideal way for advancing Washington’s economic interests and promoting prosperity for its residents.
Read or download WPC's Guiding Principles of Taxation (pdf)
Additional Resources:
• Washington Policy Center Proposes Tax Transparency Website
• Taxation Disclosure Act
