Taxation is the Death of Empires

And the foundation of a strong nation

We don’t think much about taxes, but we should. From the fall of the Roman Empire to the collapse of the Qing Dynasty, flawed taxation policies have often both precipitated and foretold national decline. Chinese history in particular has much to teach us about the consequences of fiscal dysfunction and political backlash.

In this article, I propose three reforms, including a way to stabilize Social Security by letting wealthier retirees opt out of benefits and donate them. I explore the idea of reforming US tax policies related to the exemptions currently enjoyed by educational and healthcare institutions which have promoted high inflation in these sectors. All three proposals would however preserve the tax deductibility of charitable donations.

There is an urgent need to lower sovereign debt levels worldwide in the wake of the pandemic crisis. Unless we act now, and with imagination and concern for social consequences, suboptimal and perhaps catastrophic fiscal adjustments such as defaults will occur. This is the moment to act.

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