power

As much as there are powerful people with the ability to control the economy, governments have ways of ensuring the powerful in society do not utilize their power negatively. I selected a reading that explained taxes; carriage tax, and firearm and ammunition taxes. About the carriage tax, the podcast discusses the onset of carriage tax that former US president George Washington imposed on the wealthy in society (Planet Money, 2019). Although some opposed the move, arguing that it was a direct tax, I feel the move was positive in maintaining an equal economy for all. My argument is based on the power of resources where they have access to many life chances. For example, the wealthy in society are the same people with the resources to start businesses. Due to this, they create monopolies in which other small businesses might not enter. A monopoly is a market system where one seller or business dominates the whole market. In the end, the seller dominates and controls the economy.

Imposing taxes is a good way of avoiding such market systems. I find the strategy a way of equalizing people because when only the wealthy are taxed, the poor are given a chance to grow their wealth without barriers from the wealthy. Also, it is a way of controlling and building the economy. George Washington’s government decided to impose the carriage tax because the government had run out of money. It is, therefore, upon the government to control the economy through taxes. However, taxation should not limit the less disadvantaged in gaining wealth to build the economy. Also, it should not give the wealthy the power to manipulate the economy through establishing monopolistic markets. Smart (2021) posits that firearm and ammunition taxation strategies have been used to generate revenue more than control ownership of such equipment that causes harm. This should not be the case; the role of taxation should be balanced between minimizing harm and generating revenue.

References

Planet Money. (2019, December 6). The carriage tax: Planet money. Retrieved from https://www.npr.org/transcripts/760148148

Smart, R. (2021, April 15). Firearm and ammunition taxes. Retrieved from https://www.rand.org/research/gun-policy/analysis/essays/firearm-and-ammunition-taxes.html