At no time in history nor in any country has there ever been a fair system of taxation. At all times in history, if a country collects taxes (whatever they call them), the set-up has favored some group of another. In the present day, we have the rich whining about "unfair" taxation, when what they really mean is they don't want to pay taxes and want to buy more toys. We have the poor whining about "unfair" taxation, when what they really mean is that they don't want to pay taxes and want more handouts. Many proposals have been floated, all of them purporting to be "fair", but all of them really designed to favor one part of society over the rest. What, then would be "fair"? I propose what I call a "transaction tax". Every time money changes hands, a flat percentage would be deducted. Wages? Transaction tax. Interest? Transaction tax. Purchases? Transaction tax. Dividends? Transaction tax. Inheritance? Transaction tax. Gifts? Transaction tax. Charitable donations? Transaction tax. Investment? Transaction tax. Buy a bond? Transaction tax. Cash in a bond? Transaction tax. No exceptions. Call it a "usage fee" on the money. If you don't use the money, you don't pay the tax (barter underground economy is a great way to subvert potentially tyrannical governments and should always have some way to survive--most people won't take part in it, so it's not a problem). In order to be "fair" about the matter, the transaction would have to exceed a minimum amount in order to be subject to the tax. The tax would be completely flat rate, with no deductions, no credits, no exemptions, no extra taxes, no brackets, no fees. There would be no use of taxes in order to perform social engineering. Nobody's favorite projects gets deductions. No quibbling over "tax exempt status" for anybody. No problems with "property taxes"--these would be, of course, abolished and replaced by the transaction tax. The transaction tax would be collected at the time of the transaction. Yes, a hassle, but it puts everybody on a "fair" footing--all pay the same rate, with little to no exceptions made for "special" transactions. If we can explicitly see the costs of our government in terms of a tax on every time money changes hands, we will be more likely to watch over that government. Note that this is not the so-called "Fair Tax". The "Fair Tax" has an enormous number of favor-the-rich loopholes in it. I say "no loopholes, tax it all". We will either arrive at a truly fair tax or piss off the people so much about taxation that government will be dismantled.