It is evident that a constraint or limit on the taxing power or authority of government means little unless this constraint is also accompanied by constraints on the spending power. If a government can implement direct transfers in a discriminatory manner, then members of any ruling coalition can capture for themselves any desired share of the total income of the exploited group independent of any structural tax-side constraints that might be constitutionally imposed.
-James Buchanan and Roger Congleton (Proportional and Progressive Income Taxation with Utility-Maximizing Governments)
That’s why I am always suspicious when politicians of either side advocate for “balanced budget” bills up – NONE of them rarely have the verbiage that reins in the spending AND puts a stop to “Theft by Taxation” policies. For those that have loose morals with respect to spending, all it takes is ratcheting up taxation – and voila! The budget it balanced and taxpayers get screwed again. And politicians, once their butts are in those seats, hate to have voters sweep in behind them to impose tax caps.
Amazing – all the time!
