As the new debt deal passed President Obama’s desk, the word “taxes” has recently received a lot of beating from both sides of the political isle and many people perhaps even justifiably grunge when they see that they have to pay a little more just to receive their goods, or in many cases, for paying a tax on goods they already own. Nevertheless taxes are a necessary evil for the establishment of democracy – particularly ours. With tax money we keep our borders safe, our streets clean and our children educated to say the least. The extent however of how much tax you should pay is heavily debated on and the right answer will never be just one answer, despite what a Limbaugh or an Olbermann may say.
Americans have bravely fought unfair tax codes since the birth of our nation. Tax collectors in the early 18th century were actually tarred and feathered during the Whiskey Rebellion as the United States placed a heavy tax on certain alcohol. But even though many people would still like to do the same to some folks in the IRS, let’s not forget what our first Secretary of Treasury Alexander Hamilton said that it was a “fundamental maxim, in the system of public credit of the United States that the creation of debt should always be accompanied with the means of its extinguished”. These words (far from only providing sound personal finance advice as well) have persevered through the ages and still remains the priority to our politicians as they handle our debt crises today.