@dexter: I will pay taxes, but wouldn't it be fairer for the government to charge for it's individual services?
Here is an article explaining the insanity of taxes (there's another one to, which I'll find later):
Regardless of what you call it, the economic system works as follows, in any country you care to name. The wealth produced is heavily influenced by the ratio of producers to thieves (mainly, the state):
Bob the candy dude buys various basic ingredients in bulk, such as sugar, baker's chocolate, etc. Bob then transforms these raw ingredients into his famous Zonkos. He sells his Zonkos for one Fwango (unit of currency) each. The cost of ingredients per Zonko is half a Fwango. Thus, Bob's profit is a half Fwango per Zonko.
Along comes Bill the Compassion Fascist, who institutes a Zonko tax of one Fwango per Zonko. If Bob keeps his prices the same, he obviously loses a half Fwango on each Zonko he sells. If he raises the price to one and a half Fwangos, he only breaks even (and still goes out of business). If he raises the price to one hundred Fwangos, no one will buy any, and he will go out of business.
Bob raises the price to two Fwangos per Zonko. He sells considerably fewer Zonkos at the higher price, but he still sells enough to stay in business.
So what was the effect of the Zonko tax that Bill the Compassion Fascist imposed?
1) Bob raises the price of Zonkos to stay in business.
2) Fewer Zonkos are sold because of the higher price.
3) Fewer Zonkos are made to adjust for what Bob can sell.
4) Supply of Zonkos is down, and demand for Zonkos is down.
Bill the Compassion Fascist has successfully made things cost more for everyone, and made there be less overall wealth. (Wealth is stuff people ultimately want, not currency.)
Bill, being the economic jackass that politicians usually are, had expected to make 50,000 Fwangos a year from the Zonko tax, since Bob had been selling 50,000 Zonkos a year. But because of the price increase, Bob sold only 20,000 Zonkos this year, so Bill only got 20,000 Fwangos in taxes; not enough to fund his universal healthcare plan. So Bill, proud of his stupidity, triples the Zonko tax, immediately putting Bob out of business, and ending any tax revenue from the sale of Zonkos.
In summary, here is how economics works:
People make trades they want to make (duh).
If the "buyer" wants to keep his money rather than pay a high price, he does (duh).
The same is true of the trade from the "sellers" view (duh).
Adding "tax" to the deal makes it more likely there will be no deal (duh).
(This bleeding obvious phenomenon affects "essential" items less, such as food, since the buyer needs food in order to survive.)
Any questions?