What's unfair about taxing everybody based on the level of privilege that they've achieved by making use of the system set up by a government?
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It's the same people who cry laissez-faire that seem to be the biggest flat taxers. Laissez-faire would treat the government just like any other business entity. Taxes are what we pay for playing on this field. If businesses or individuals feel they're paying too much tax, they can move-- and in fact, this happens, with people changing states to avoid local taxes all the time.
If enough move, the tax base drops, and taxes will be lowered to bring the folks back in.
Regardless of the structure, one can say that its brutally fair in that anyone who doesn't like it is free to find something more palatable. In fact, those who pay the highest rates are probably the most mobile folks in our society.
16th amendment, eh? Check out The Law That Never Was -- The Fraud of Income & Social Security Tax -- Home - I guess some would claim that the amendment was never ratified by 75% of the states, but was announced as ratified anyway.
I've always wondered how on earth such an amendment could have been passed by 3/4 of the states at any period. I need to refresh myself on early 20th century US history