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Thursday, April 17, 2008 - 8:23amSanction this postReply
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Mr. Machan, I thoroughly enjoy all your essays, including this one. But I feel I must point out the case is slightly worse for U.S. citizens than your statement here indicates:

One is born in a country and unless one stops being its citizen and leaves it, one must pay taxes.

The U.S. Internal Revenue Service claims expatriated citizens (people who renounce their U.S. citizenship to be clear) have an income tax obligation for ten years following expatriation. Your statement is not wrong or inaccurate, it just takes ten years to leave the country!

Best regards,
Paul

Post 1

Thursday, April 17, 2008 - 11:06amSanction this postReply
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This is a really wonderful essay, because it lays bare the unsavory and inescapable truth about taxation. Taxes are the means by which political elites coercively finance and impose their "vision" on other people, and not coincidentally, thereby elevate their own power, prestige, and financial status. Taxes are the means by which various interest-groups that rally behind political leaders endeavour to live off the work of others.  Once one grasps that taxation is institutionalized theft, most of the activities of the federal (and lower levels of) government are revealed to be ethically wrong. If taxation is ethically wrong, then so are the numerous collectivist crusades, both domestic and military, that have been used to whip up support for restricting individual freedom by further empowering the state.

Post 2

Thursday, April 17, 2008 - 6:13pmSanction this postReply
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There is, however, the underlying problem of "justice."  Freedom is not "free."  Let's take the paradigm that Tibor presents and do a little deconstruction.  Let's say that there are a bunch of people living in proximity reasonably peacefully, doing primitive farming as well as hunting and gathering.  Meanwhile, another tribe that lives exclusively by hunting and gathering has run out of resources or been run off its land by somebody even nastier, and the farmers are easy pickings to seasoned hunters, used to killing big game.  So, initially they kill the farmers as needed or for entertainment and steal their produce.  After all, if they don't do it, then there are other hunting tribes who likely will.

But that's only a short term fix.  Because there are probably other hunting tribes competing for a share of the action, a longer term solution is for a smarter hunting tribe to offer "protection" to the farmers in return for a set share of their production.  That way the hunter/warriors have a fixed resource and the farmers won't simply be wiped out by a series of predatory groups. 

The thing to note here is that without someone providing protection, the farmers will simply be wiped out, as the farming lifestyle does not really prepare one with the proper skills and resources for fighting.  Secondly, while the random predators care little about the long-term success of any particular group of farmers, as someone else will pillage them anyway, without protection, the gang that has made a deal for a share in return for protection does indeed have a vested interest in the productivity of all the farmers under its wing, both long and short term.

As an anarchist, I feel a bit uncomfortable providing what appears to be a justification for the coercive state, as you might imagine.  However, my take on this has long been that the elimination of the state, both total and piecemeal, is an evolutionary progression.  Moving from pure predation to mutualism, as in the above paradigm, was the first stage.  And, just as the percentage of people involved in farming itself has fallen exponentially over time, due to better technology and better economic systems, so the number of people and resources needed to provide protection should also be falling.

The fact is that you either grow your own food or you trade with farmers.  Similarly, you can try to provide your own protection, but unless you specialize in that field, you are in the same situation as an amateur farmer.  The problem is that because the state has exerted a monopoly control over basic aspects of protection, it is able to inflate its prices almost without limit, without any corresponding increase in the value of its services. 

As Rothbard demonstrated in his classic Power and Market, the optimum price point for any good or service is set by the supply and demand curve.  This applies whether there are many competitors or a single monopoly.  However, this point, while valuable in arguing for unfettored free markets, may obscure the fact that the producers of that good, if they are a coercive monopoly, like the state, may not be responding well to the market signals.  They may, in fact, have other priorities, such as a dog-eat-dog competition within the state for raw power, a competition that can easilly degenerate into a resource eating black hole that can destroy the host society.


Post 3

Sunday, April 20, 2008 - 3:54pmSanction this postReply
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Beardsley Ruml, the Chairman of the NYC Federal Reserve,
the primary Federal Reserve Bank, made a speech to the
Chamber of Commerce in 1946 detailing the purpose of
the income tax.

You will find a link the text of that speech here:

http://www.detaxcanada.org/fairshare.htm

Also, you will see that the Grace Commission appointed
by Pres. Reagan says that income tax pays for NO
government services.



Post 4

Wednesday, May 1, 2013 - 10:28pmSanction this postReply
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In my hypothetical, a black orb called 'The Glom' appears from deepest space at light speed and hovers just a mile above DC. A show of power is achieved. Michael Rennie takes a walk around town. He shuts the earth down for 30 minutes. There's a new sheriff in town.

Michael Rennie is an affable Glom King; "No need to disband the federal or any government; you guys tax anything on the dirt, I'll tax anything even a micron above the dirt."

A new cosmic authority imposes a new tax. This is in addition to the local tax, the county tax, the school tax, the state tax, and the federal tax.

It's the Glom tax. It is payable in US dollars in the US. It's a reasonable 40%. That is fair, considering that there is way more than 40% of us above the dirt.

Michael Rennie spends the money taxed back into the US Economy! (Translated; he hands back currency he just took from us and demands we give him things for it.) In addition, his printing technology is light years ahead of ours, and when he has even bigger ideas for how some of us can live better if only he builds a new imperial gizmo in The Glom Capitol, he prints as much as he wants.


Question: under the current theoretical thinking about 'stimulus' should we all be praying for The Glom to arrive tomorrow, or does any of us think that this would drive our economies even deeper into the mudd?

Would those of us still working and trying to run uphill just find the new additional tax more of a burden, or would this be overwhelmed by all the new, selectively aimed 'spending' that Michael Rennie was throwing around?

Who is pulling on pump handles to make whatever Michael Rennie and the Glom is buying with the money that he takes and that he simply prints?


How is this analysis any different than dealing with the overburden of an unchecked and out of all control DC?

regards,
Fred

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