Wednesday, February 20, 2008

A couple of thoughts on taxation.

I had originally posted a more elaborate analysis, but it was hastily written at 3 AM. I've saved it somewhere, and I'll get back to it when I get a chance. (maybe tonight)

In the mean time, I'd like point out that under a fiat currency, all taxation is redistributive... that is, there's a centerline at which dollars and "things which can be purchased with dollars" float, and taxation merely shifts purchasing power around that line. That's really all it does (under a fiat currency). All taxation is theft, yes, but that's only half the picture. All taxation is redistribution. All government spending is taxation. This is a complicated idea, but if you think of the fact that the actual number of dollars in circulation means nothing, and pursue that line of reasoning to it's end point, eventually you'll see what I'm talking about.

Think of government spending. When the government steals that money, who benefits, really? The government itself? They get their salaries, yeah. But other than that, most of the money goes to contractors of one sort or another. The people who get paid by the government are the Power Elite. They are the people the government is really working for.

The government also pays people by not taxing them as much. This one is the most difficult to grok, and will cause the most objection, but if you've understood the last two paragraphs, it should make sense.

1 comment:

Latecomer said...

Government workers work, so they have to be paid. Contractors work and use materials, so they have to be paid. It's not just pure free money. These workers and contractors do and make valuable things for society as a whole. You know, infrastructure, education, healthcare, defense, pensions, etc.

Also, a lot of government revenue is redistribution to those who are less well off, who would otherwise be in pretty bad shape in a free market society, anarchist or otherwise, most probably.