“Modern American politics is dominated by the doctrine that government is the problem, not the solution. In practice, this doctrine translates into policies that make low taxes on the rich the highest priority, even if lack of revenue undermines basic public services. You don’t have to be a liberal to realize that this is wrong-headed. Corporate leaders understand quite well that good public services are also good for business. But the political environment is so polarized these days that top executives are often afraid to speak up against conservative dogma.”

— Paul Krugman

Paul Krugman is a Princeton University economist who writes for the New York Times. The excerpt above came from one of his recent columns, and in many ways it synthesizes the thinking behind what has become one of this country’s most bedeviling political credos: taxes and government are bad.

For many, this pithy one-liner is the extent of their political philosophy. This kind of thinking won’t allow its followers to reasonably discuss the merits of government investment in public services because it relies inherently on the belief that government is the problem. It turns a blind eye to what government does well.

As I watched North Carolina’s General Assembly stumble toward a messy conclusion to its most recent session, I couldn’t help but be reminded of what Krugman had pointed out. While a lowering of taxes for those in the upper income brackets may turn out to help the state, it is happening in the same year that many legislative leaders are trumpeting the need for the state to enact a lottery. In other words, we need money. To get it, we’ll reduce taxes on the rich and hike taxes on the poor (which, after all, is what a lottery is).

I once argued to a reasonable friend that bureaucrats — whether they are air quality inspectors, workplace safety regulators, or school administrators — are vital and necessary for a functioning society. Of course we’ve all run across those self-righteous bureaucrats who do gloat on — and often abuse — the power they hold. Unfortunately, those people make life difficult for other government employees who, for the most part, do a commendable job for a relatively low wage. Local government, state and federal workers — i.e., bureaucrats — are an integral part of our society.

It’s that word — society — that is often forgotten by those who always argue against any kind of tax hike. We are all members of this society, which is defined as a “community of people bound together by similar traditions, institutions or nationality.” To live in a society, we must pay some dues.

I certainly won’t argue that our tax codes are completely fair, or that they can’t be improved. Phil Kirk, who heads an organization called N.C. Citizens for Business and Industry, recently wrote an opinion piece bemoaning this state’s tax code. He worries that North Carolina’s corporate income tax rate — the second highest in the Southeast — and our personal income tax rate for those in the upper income brackets combine to deter companies from locating here. His organization advocates a gradual reduction in these tax rates so that government investment in education, human services and transportation won’t disrupt necessary increases to accommodate population growth.

As these taxes on the wealthy are reduced — a position that has gained support in the General Assembly — Kirk argues that the improving business climate will ultimately increase the tax base. I’m still not sure I buy that logic. It’s just a reworked version of the trickle-down economics many in the business community have been preaching for decades.

But what if the stagnant investment in public services, especially in this global economy, drives away economic opportunities?

Krugman’s excerpt was from a column he wrote about Toyota choosing Canada over Alabama for a new manufacturing facility. Two factors led to the decision: one, Canada’s free public health system meant Toyota would not have to invest anything in health care (remember what is decimating the bottom line of General Motors?); and two, the training necessary to get the citizens in Alabama up to speed was much more expensive than what it would cost in Canada to get workers ready.

Think about that. Whenever talk turns to the need for a national health care system in the U.S., immediately we hear that we have the best system in the world? Really? Or is it the best only for those who have insurance — and nowadays the level of insurance coverage and the cost of the deductibles varies tremendously — and can afford this great system we have?

Not only is our system not the best for the low-income and middle-income workers who don’t have access to it, it also penalizes companies who treat their employees great. Their competitors can go to Europe or Canada and not pay health care costs, or they can go to a Third World country and pay sweatshop wages without having to worry about environmental regulations. Either way, American businesses — and particularly American workers — suffer. Right here in Western North Carolina Blue Ridge Paper is struggling to hang on, and one of its most costly items is benefits for employees, especially health care.

Toyota also, by choosing Canada, was being critical of our education system. Workers were too costly to train. As mentioned earlier, North Carolina leaders are trying to float a lottery to pay for basic education needs in our public schools instead of relying on taxes. Our flagship university system is taking funding cuts even as more high school students than ever are seeking a university education. Money for teacher assistants in the early elementary grades is being reduced. In other words, we are beginning to sacrifice basic needs while at the same time lowering taxes on those in the upper income brackets.

So how do we contribute to our society — and our economy — when we pay taxes to fund the salaries of bureaucrats? When corporations and small businesses locate in North Carolina, their workers and their children will have access to some of the best-priced universities in the nation. If a kid wants to become a nurse or a computer technician, jobs they can be trained for at a community college, the cost laughably cheap. We have good roads and industries are meeting emission standards set by the EPA and others. We have policemen on our streets and a landfill for our trash. The list goes on and on.

Look, I’m a cheapskate. Ask the people who work with me. I hate paying taxes just and I dislike having to upgrade computers and buy office furniture.

But I also like living in a well-educated, prosperous society that makes wise investments to take care of its needs. Things like great public schools and even health insurance for the poor cost money. But instead of moaning about the high cost, we need to see them for what they are — investments in our society, its people, and its economy. Without paying the price, the system won’t last. As more and more citizens continue to see taxes as the ultimate government evil, the underpinning of our social structure will begin to crumble. Perhaps it has already started.

(Scott McLeod can be reached at info@smokymountainnews.com.)