Against Taxes

This is the anti-tax thread. Post here your bitching, moaning, venting, raving, etc.

I am particularly interested in posts that tackle the following problem:

Give a concise argument that has the best chance of persuading the average, patriotic individual* on the street that the government has no right to tax, and/or that taxation is always destructive to economic prosperity, etc. without going into extended discussions over whether we need a government or not. Almost as good are arguments that at least plant seeds of doubt/food-for-thought that will continue to fester in people’s minds over the long-term and potentially lead them to ask some of these questions later on out of their inability to eradicate the doubt from their mind created by the pesky arguments.

Clayton -

*i.e. the type of person who might say something like, “I’m grateful for the opportunities that the American government has made possible for me so I could have the comfortable income that I have”

It’s not incredibly short, but it gets the job done.

Libertarians really need to lose the 'stache.

…says the guy with the lulzsec logo as his avatar

@JJ - Good one. I guess George Ought to Help does similar:

It’s not directly anti-tax but it rebuts one of the most common arguments for taxes.

I guess the argument that really gets under my skin is the But you Drove on Roads! argument. What I really want is a George-Ought-to-Help-style refutation of that argument. OK, so the government decided to build roads and I decided to drive on them. So what? How does it follow from that that I owe taxes? And I don’t want to go the “Oh, but everything could be produced privately if we just tried it” route. I want something that makes the argument perhaps not in the strongest logical form but speaks to people’s hearts like George Ought to Help does.

Clayton -

Wouldn’t the argument then become:

  • People have no real alternative to public roads
  • The choice becomes “use public roads or cut yourself off from society”
  • Isn’t this extortion? It’s our way or the highway seclusion.
  • Wouldn’t it be moral if we cut out the extortion?

Which, ironically, is a statement that shows subjective valuation. What if we said, “I’m not grateful for the opportunities that the American government has made not possible for me so I could have the comfortable income that I have”? They would probably respond with some like, “Well, without the [state], then you wouldn’t have the opportinuties at all because anarchy this and that.”

It seems as if all we could do is point out the fallacies in their, instead of us being ones to make the arguments.

Anyway, I think an easy way for people to visualize the affect of taxation is by showing its affect on compound growth. For example, say you got a CD that rolls over for 10 years:

Without taxation: $1000 + 4% annually for 10 years = $1480.24

With taxation: $1000 + 4% annual, minus say 15% tax, for 10 years = $1397.03

Yeah, be sure and check out my post in that thread. It lists a lot of Block’s writings on that subject.

However, (granted I haven’t read many of them), I’m very disappointed with his reasoning. I find it incredibly unconvincing. He sounds like he’s trying every which way to have his cake and eat it too.

The one he always recommends first is “Ron Paul and Matching Funds”. There he addresses the argument that you are only getting your own money back by using these services, and then goes further and makes the argument that even if you were a Martian who came to Earth having never been the victim of the State’s extortion, you would still be justified in accepting any government largesse, on the grounds that the State has no claim on the wealth it has stolen.

This is just an incredibly poor argument in my view. The next piece that he recommends is his email correspondence with a high school graduate who is about to attend undergrad school and is uneasy about taking government financial aid.

This is an interesting piece, as you have this high school kid coming back with the same objections to Block’s reasoning that I would. Every time Block writes to him, I pick out flaws in his argument and then I read on and see that the kid points them out in his response. What gets me is the kid is that sharp, and in my view makes the better argument, and yet somehow ends up getting convinced of Block’s perspective (it would seem “starstruckness” had something to do with it.)

Block actually alleges there is no difference between actively applying for and accepting State aid for college, and walking on a public sidewalk. This is just utterly unconvincing to the point of basically being ridiculous. The kid points out that he has no choice but to use the roads, but he could easily avoid getting the financial aid. Block responds by saying he could easily avoid the roads too by becoming a hermit, or committing suicide. Seriously?

When the kid responds by essentially saying he needs to be mobile to survive, but getting free money to pay for college is hardly necessary for his survival, Block makes the argument that by taking money from the State he would be effectively making the State weaker…and thereby being a good libertarian. By not taking the money, he is (reductio) a statist, as he is complicit in allowing the State to keep wealth it illegitimately gained when he had the opportunity to relieve it of said booty.

I suppose if I overthought it enough, that might start to make rational sense, but to me, it’s incredibly unconvincing…and I’m someone who’d like it to be true (i.e. a solid argument). I see no possible way that would suffice for a statist who is not sympathetic to a libertarian persuasion and trying to see it that way.

The kid makes the (accurate in my opinion) point that:

“I would be getting counterfeit money from the Federal Reserve and borrowed money. You might argue that the state doesn’t deserve this money either, but I would still be ADDING to the problem. Because of people like me, our government needs to get more money somehow. I don’t know if I could live with myself if I was part of the reason our federal government was so big.”

And this is something Block never really counters. He just says “If I could get the government to give me $1 million in welfare I wouldn’t hesitate. I’d use the money to further weaken them. Merely taking it from them in this manner would weaken them.” And then later, after the kid points out they could just print up more, thus (a) countering any real “harm” you may have done to them, and (b) making things worse overall, Block just says

“Suppose I took $100 of yours. But, you have a printing press in your basement, and could print up as much more as you want (well, within some limits). Would you better off, worse off or the same if I hadn’t stolen $100 from you. Obviously, you’d be worse off from my theft. Ditto for the government.”

Is he fricking kidding me? This is economist Walter Block talking here, and that’s his rebuttal? What the hell?

So as far as I can tell, the best argument I’ve seen so far is that using the public services you effectively have no real choice (other than suicide) but to use, (a) it is a monopolized system that you cannot opt out of…kind of like copyright (see section “Copyright, Public Domain, Hypocrisy, and Ignorance” here). It is forced upon you and you have no other option…thus going about your life does not ipso facto mean you agree with it, nor does it make you a hypocrite. (b) you are merely getting your money back.

If anyone has literature (including anything in any of that list of Block writings) that could add to that, I’d love to hear about it.

I actually think that’s partially along the lines of bitbutter’s actual follow up film that is currently in the works.

I can definitely understand the apprehension of mentioning the privatization aspect, but I think it’s unavoidable because the very first response you inevitably get is “but who would build the roads?” (and yes, I do mean you personally). I agree you don’t want to start there, but you do have to have that argument ready to pull out when that question predictably comes. The ignorance is too great for it not to. Sometimes it’s as if their entire argument for government is “well I can’t think of any other way order would come about. So the State is necessary.”

Evidently they’ve never heard of the logical fallacy.

Not being a finance expert, I’m curious how you came up with that result.

I’m not necessarily against taxes myself, but I understand what it means to be for them. I think the most important thing I try to cover when I talk to people about taxes (which rarely happens but still) is what exactly we’re talking about doing. Most people I’ve personally talked to about such things end up trying to pretend they’re “good people” because they want the money to go to poor people, old people, sick people whatever. I try to make it clear to them that just because they may enjoy the result that the means used to accomplish that result are still brutal in nature.

I know this doesn’t necessarily cover the idea of rights. But I don’t really like to go into that with people. I just try to get them to think about the nature of their preferences and actions. Whether those actions are right or wrong are for them to come to terms with later.

Why?

Because they’re used to pay for some things that I enjoy. Besides I don’t get all hung up on morality too terribly often.

Oh right. I forgot you’re the “might makes right” guy. Nevermind.

I think that’s an oversimplification of the idea but yeah sure if it makes you happy.

@bloomj: That’s probably because you have a mistaken view of what morality is.

Clayton -

I guess what I should say is that I don’t concern myself with objective morality too terribly often.

The fact that a slave accepts a meal from his master doesn’t mean he has consented to slavery. It’s an extreme analogy but probably makes the point.

On a related note: what about the “if you don’t like it you can leave” justification for taxation? It seems wholly circular. If the mafia starts a protection racket in my neighbourhood, it’s also the case that “if I don’t like it I can leave.” (Though just leaving overnight might be difficult if that’s where I’ve lived my whole life.) But how does that make what the mafia is doing any more legitimate?

In fact, all of the “social contract” rationales for the state are circular. They all presume that the government already has a legitimate ownership claim over “its” territory, the same way that a restaurant proprietor has a legitimate claim over his restaurant. If it does, then it can certainly justifiably restrict entry into its own bailiwick or enforce obligations on the people who live within it, by making them swear an oath of citizenship for example, the same way that the store owner can justifiably demand that you pay for the food you take from his shelves.

But if the government doesn’t truly own the territory, then it isn’t any different from an extortion/protection racket run by a criminal gang. In both cases you don’t actually have a moral obligation to obey (though you might well for practical reasons, such as not being killed/sent to jail, etc.) So it all comes down to your theory of ownership: what makes an ownership claim legitimate? Do I come to own territory if I just proclaim that I own it and get a lot of people to agree with me (the way mafia gangs and states do) or is something more required?

Another extreme, but excellent, anology: If a woman doesn’t like being raped, then she can stop being raped if she agrees to be raped for another 10 minutes.

This is analoguous to the “if you don’t like being taxed, then you can leave” justification in that the US Government allows you to leave if you pay the Expatriation Tax.

@Muffinburg - LOL