The Problem Many economists, including a group of Nobel Laureates, will tell you that income, sales, property, excise, and import taxes damage the economy, because the under production is created by wrong incentives. So the usual argument is over doing moderate or major damage to the economy. We need government, big enough to protect our rights and small enough that it cannot take our rights away. The government needs revenue to operate, but the problem with the present system is it is cumbersome and unfair. The income tax punishes productivity.
Sales taxes punish the poor more than the rich.
The property tax punishes those who take good care of their property, and rewards those who let their property go to ruin. Excises and tariffs raise prices and discourage free trade. Criteria of Effective Taxation What is needed is a revenue which bears as lightly as possible upon production so as not to discourage the general output. Various Proposals to Achieve a Fair Economy Various proposals have been made over the years and each falls short of economic fairness in some way. Many believe that governmental guidance and regulation will bring economic justice.