Franklin D. Roosevelt: 'Here is my principle: Taxes shall be levied according to ability to pay. That is the only American principle.'

Here is my principle: Taxes shall be levied according to ability to pay. That is the only American principle.

In his famous quote, Franklin D. Roosevelt succinctly captures his principle regarding taxation: 'Taxes shall be levied according to ability to pay. That is the only American principle.' This quote represents an essential aspect of American democracy - the idea that individuals and businesses should bear the burden of taxes in proportion to their ability to do so. Roosevelt's words emphasize the importance of fairness and equal opportunity within the tax system.Taxation is a fundamental tool for governments to generate revenue and fund public services and infrastructure. However, it is crucial to implement tax policies that are equitable and just. Roosevelt's principle aligns with the notion of progressive taxation, where those who earn more contribute a higher percentage of their income to taxes, while those with lower incomes bear a smaller burden. This approach ensures that individuals and families in higher income brackets contribute their fair share to society, while also allowing those with lesser means to meet their basic needs.The concept of progressive taxation is not just an economic principle but also a philosophical one, rooted in the belief that individuals should contribute to the collective welfare according to their ability. It reflects the ideals of fairness, social justice, and equality of opportunity. By levying taxes based on ability to pay, societies actively strive to reduce economic disparities and promote a more just and inclusive society.Nevertheless, it is essential to recognize that the concept of ability to pay extends beyond mere financial capability. This brings us to an unexpected philosophical concept, one that adds depth and interest to the discussion: the idea of subjective ability to pay. While income and wealth are traditional markers of one's financial capacity, there are other factors to consider. For instance, an individual may have high financial resources but also face significant financial obligations, preventing them from contributing as much as their income might indicate.Subjective ability to pay introduces elements of personal circumstances, responsibilities, and obligations into the taxation equation. Such considerations could include medical expenses, childcare costs, student loans, or even the need to support elderly parents. By acknowledging the complexities of financial situations and incorporating the subjective ability to pay, the taxation system becomes more nuanced and compassionate.Integrating subjective ability to pay alongside objective financial capability may make taxation policies fairer and more inclusive. It helps ensure that people's economic burdens are not solely determined by their income but by a broader understanding of their circumstances. A tax system that considers both objective and subjective factors can support individuals and families in maintaining a decent standard of living while still contributing their fair share.In conclusion, Franklin D. Roosevelt's quote encapsulates a fundamental principle of American taxation: that taxes should be levied according to ability to pay. This principle aligns with the concept of progressive taxation, where those with higher incomes contribute a larger percentage of their earnings. However, to fully embrace the spirit of fairness and inclusivity, it is essential to also consider the subjective ability to pay. By recognizing personal circumstances and obligations, we can create a tax system that promotes economic equity, reduces disparities, and ensures a just and compassionate society for all.