The position that taxation is theft, and therefore immoral, is found in a number of political philosophies. Its popularization marks a significant departure from conservatism and classical liberalism, and has been considered radical by many as a result. [1] [2] The position is often held by anarcho-capitalists, objectivists, most minarchists, right-wing libertarians, and voluntaryists, as well as left-anarchists, libertarian socialists and some anarcho-communists.
Proponents of this position see taxation as a violation of the non-aggression principle. [3] Under this view, government transgresses property rights by enforcing compulsory tax collection, regardless of what the amount may be. [4] [5] Some opponents of taxation, like Michael Huemer, argue that rightful ownership of property should be based on what he calls "natural property rights", not those determined by the law of the state. [6]
Defenders of taxation argue that the notions of both legal private property rights and theft are defined by the legal framework of the state, and thus taxation by the state does not represent a violation of property law, unless the tax itself is illegal. [7] [8] Some defenders of taxation, such as socialist Matt Bruenig, argue that the phrase "taxation is theft" is question-begging, since it relies on presupposing a particular theory of property entitlement. [9]
In the 17th century, John Locke took the position in Second Treatise of Government that government authority arises from the consent of the governed, and not through the divine right of kings. [10] The libertarian activist L. K. Samuels, asserts in his "Rulers' Paradox" that since the citizenry is the holder of all rights, governmental bodies derive their authority to govern society via elections of government officials. In that vein, Samuels maintains that citizens can only give rights which they have. The Rulers' Paradox comes into play when governmental bodies exercise rights that the citizens do not hold or could not hold. According to Samuels: "If ordinary citizens could assassinate, steal, imprison, torture, kidnap, and wiretap without incrimination, that authority could be transferred to government for its democratic arsenal of policymaking weaponry." [11] Taxation could be viewed as theft since, according to Lockean natural rights doctrine, government authority must obtain their rights from the citizenry. [12]
Lysander Spooner, a 19th-century lawyer and political philosopher, who had argued before the United States Supreme Court, wrote the essay No Treason: The Constitution of No Authority . In it he stated that a supposed social contract cannot be used to justify governmental actions such as taxation, because government will initiate force against anyone who does not wish to enter into such a contract.
No open, avowed, or responsible association, or body of men, can say this to him; because there is no such association or body of men in existence. If any one should assert that there is such an association, let him prove, if he can, who compose it. Let him produce, if he can, any open, written, or other authentic contract, signed or agreed to by these men; forming themselves into an association; making themselves known as such to the world; appointing him as their agent; and making themselves individually, or as an association, responsible for his acts, done by their authority. Until all this can be shown, no one can say that, in any legitimate sense, there is any such association; or that he is their agent; or that he ever gave his oath to them; or ever pledged his faith to them. [13] [14]
The 19th-century French economist Frédéric Bastiat described taxes as legal plunder. Bastiat held that the state's only legitimate function was to protect the life, liberty, and property of the individual.
Now, legal plunder may be exercised in an infinite multitude of ways. Hence come an infinite multitude of plans for organization; tariffs, protection, perquisites, gratuities, encouragements, progressive taxation, free public education, right to work, right to profit, right to wages, right to assistance, right to instruments of labor, gratuity of credit, etc., etc. And it is all these plans, taken as a whole, with what they have in common, legal plunder, that takes the name of socialism. [15]
Murray Rothbard argued in The Ethics of Liberty in 1982 that taxation is theft and that tax resistance is therefore legitimate: "Just as no one is morally required to answer a robber truthfully when he asks if there are any valuables in one's house, so no one can be morally required to answer truthfully similar questions asked by the state, e.g., when filling out income tax returns." [16] [17]
Andrew Napolitano attempts to justify the position that "taxation is theft" in his book It Is Dangerous to Be Right When the Government Is Wrong where he asks a series of rhetorical questions like "Is it theft if one man steals a car?" and "What if a gang of ten men take a vote (allowing the victim to vote as well) on whether to steal the car before stealing it?", showing what he believes are similarities between theft and taxation. [18] [ non-primary source needed ]
Liam Murphy and Thomas Nagel assert that since property rights are determined by laws and conventions, of which the state forms an integral part, taxation by the state cannot be considered theft. In their 2002 book, The Myth of Ownership: Taxes and Justice, they argue:
...the emphasis on distributing the tax burden relative to pretax income is a fundamental mistake. Taxation does not take from people what they already own. Property rights are the product of a set of laws and conventions, of which the tax system forms a central part, so the fairness of taxes can’t be evaluated by their impact on preexisting entitlements. Pretax income has no independent moral significance. Standards of justice should be applied not to the distribution of tax burdens but to the operation and results of the entire framework of economic institutions. [7]
Another justification of taxation is contained in social contract theory. Proponents argue that the public has democratically allowed people to accumulate wealth with the understanding that a portion of that wealth would be allocated for public use. In their view, to accumulate wealth without taxation would be to violate this social understanding. [19] Institutions such as the IMF and economist Alex Cobham, of the Tax Justice Network, argue that since public services in the form of education and infrastructure provides a foundation for wealth creation, a portion of those economic gains should therefore be used to continue to fund basic provisions that provide the opportunity for future economic growth. [20] The libertarian response to this is that they do not consent to the social contract, and that any compact that would involuntarily bind people to it is tantamount to slavery. [21] Indeed, John Locke himself argued that the social contract was a voluntary arrangement. [22]
Anarcho-capitalism is an anti-statist, libertarian political philosophy and economic theory that seeks to abolish centralized states in favor of stateless societies with systems of private property enforced by private agencies, based on concepts such as the non-aggression principle, free markets and self-ownership. In the absence of statute, anarcho-capitalists hold that society tends to contractually self-regulate and civilize through participation in the free market, which they describe as a voluntary society involving the voluntary exchange of goods and services. In a theoretical anarcho-capitalist society a system of private property would still exist, and would be enforced by private defense agencies and/or insurance companies that were selected by property owners, whose ownership rights or claims would be enforced by private defence agencies and/or insurance companies. These agencies or companies would operate competitively in a market and fulfill the roles of courts and the police. Some anarcho-capitalist authors have argued that voluntary slavery is compatible with anarcho-capitalist ideals.
Claude-Frédéric Bastiat was a French economist, writer and a prominent member of the French liberal school.
Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, rent, sell, exchange, transfer, give away, or destroy it, or to exclude others from doing these things, as well as to perhaps abandon it; whereas regardless of the nature of the property, the owner thereof has the right to properly use it under the granted property rights.
Libertarian theories of law build upon classical liberal and individualist doctrines.
Some philosophers distinguish two types of rights, natural rights and legal rights.
Geolibertarianism is a political and economic ideology that integrates libertarianism with Georgism. It favors a taxation system based on income derived from land and natural resources instead of on labor, coupled with a minimalist model of government, as in libertarianism. The term was coined by the late economist Fred Foldvary in 1981.
A night-watchman state, also referred to as a minimal state or minarchy, whose proponents are known as minarchists, is a model of a state that is limited and minimal, whose functions depend on libertarian theory. Right-libertarians support it only as an enforcer of the non-aggression principle by providing citizens with the military, the police, and courts, thereby protecting them from aggression, theft, breach of contract, fraud, and enforcing property laws.
The nature of capitalism is criticized by left-wing anarchists, who reject hierarchy and advocate stateless societies based on non-hierarchical voluntary associations. Anarchism is generally defined as the libertarian philosophy which holds the state to be undesirable, unnecessary and harmful as well as opposing authoritarianism, illegitimate authority and hierarchical organization in the conduct of human relations. Capitalism is generally considered by scholars to be an economic system that includes private ownership of the means of production, creation of goods or services for profit or income, the accumulation of capital, competitive markets, voluntary exchange and wage labor, which have generally been opposed by most anarchists historically. Since capitalism is variously defined by sources and there is no general consensus among scholars on the definition nor on how the term should be used as a historical category, the designation is applied to a variety of historical cases, varying in time, geography, politics and culture.
The Non-Aggression Principle (NAP), also called the Non-Aggression Axiom, the non-coercion principle, the non-initiation of force and the zero aggression principle, is a concept in which "aggression" – defined as initiating or threatening any forceful interference with either an individual or their property, or agreements (contracts) – is illegitimate and should be prohibited. Interpretations of the NAP vary, particularly concerning issues like intellectual property, force, and abortion.
The Lockean proviso is a feature of John Locke's labor theory of property which states that whilst individuals have a right to homestead private property from nature by working on it, they can do so only if "there was still enough, and as good left; and more than the yet unprovided could use".
The labor theory of property is a theory of natural law that holds that property originally comes about by the exertion of labor upon natural resources. The theory has been used to justify the homestead principle, which holds that one may gain whole permanent ownership of an unowned natural resource by performing an act of original appropriation.
Libertarianism is a political philosophy that holds freedom as its primary value. Many libertarians conceive of freedom in accord with the Non-Aggression Principle, according to which each individual has the right to live as they choose, so long as it does not involve violating the rights of others by initiating force or fraud against them.
In the United States, libertarianism is a political philosophy promoting individual liberty. According to common meanings of conservatism and liberalism in the United States, libertarianism has been described as conservative on economic issues and liberal on personal freedom, often associated with a foreign policy of non-interventionism. Broadly, there are four principal traditions within libertarianism, namely the libertarianism that developed in the mid-20th century out of the revival tradition of classical liberalism in the United States after liberalism associated with the New Deal; the libertarianism developed in the 1950s by anarcho-capitalist author Murray Rothbard, who based it on the anti-New Deal Old Right and 19th-century libertarianism and American individualist anarchists such as Benjamin Tucker and Lysander Spooner while rejecting the labor theory of value in favor of Austrian School economics and the subjective theory of value; the libertarianism developed in the 1970s by Robert Nozick and founded in American and European classical liberal traditions; and the libertarianism associated with the Libertarian Party, which was founded in 1971, including politicians such as David Nolan and Ron Paul.
Right-libertarianism, also known as libertarian capitalism, or right-wing libertarianism, is a libertarian political philosophy that supports capitalist property rights and defends market distribution of natural resources and private property. The term right-libertarianism is used to distinguish this class of views on the nature of property and capital from left-libertarianism, a variant of libertarianism that combines self-ownership with an anti-authoritarian approach to property and income. In contrast to socialist libertarianism, right-libertarianism supports free-market capitalism. Like most forms of libertarianism, it supports civil liberties, especially natural law, negative rights, the non-aggression principle, and a significant transformation of the modern welfare state. Practitioners of right-libertarianism usually do not self-describe by that term and often object to it.
The Law is an 1850 book by Frédéric Bastiat. It was written at Mugron two years after the third French Revolution and a few months before his death of tuberculosis at age 49. The essay was influenced by John Locke's Second Treatise on Government and in turn influenced Henry Hazlitt's Economics in One Lesson. It is the work for which Bastiat is most famous, followed by the candlemaker's petition and the parable of the broken window.
Libertarianism is variously defined by sources as there is no general consensus among scholars on the definition nor on how one should use the term as a historical category. Scholars generally agree that libertarianism refers to the group of political philosophies which emphasize freedom, individual liberty and voluntary association. Libertarians generally advocate a society with little or no government power.
Voluntary taxation is a theory that states that taxation should be a voluntary act. Under the theory, people should have the option to pay taxes instead of being forced to pay taxes by their government. Under this theory, the people would control how much they pay and where they spend it. The theory is a part of Objectivist politics and many libertarian ideologies. Proponents of some studies assert that individuals will give to government, paying voluntary taxes to support specific functions.
Natural-rights libertarianism is the theory that all individuals possess certain natural or moral rights, mainly a right of individual sovereignty and that therefore acts of initiation of force and fraud are rights-violations and that is sufficient reason to oppose those acts. This is one of the two ethical view points within right-libertarianism, the other being consequentialist libertarianism which only takes into account the consequences of actions and rules when judging them and holds that free markets and strong private property rights have good consequences.
The following outline is provided as an overview of and topical guide to libertarianism:
Liberalism is a political and moral philosophy based on the rights of the individual, liberty, consent of the governed, political equality, right to private property and equality before the law. Liberals espouse various and often mutually warring views depending on their understanding of these principles but generally support private property, market economies, individual rights, liberal democracy, secularism, rule of law, economic and political freedom, freedom of speech, freedom of the press, freedom of assembly, and freedom of religion. Liberalism is frequently cited as the dominant ideology of modern history.
Some radical libertarians hold that all taxation is immoral, on the grounds that it amounts to the state stealing the money of private citizens. This is an extreme position, but the sense that tax…
Doherty notes that in the 1960s, the self-proclaimed Radical Libertarian Alliance had "taxation is theft" as a central tenet and a constituent of its motto.
Hence, private property cannot exist without a political system that defines its existence, its use, and the conditions of its exchange. That is, private property is defined and exists only because of politics.
Sect. 97. And thus every man, by consenting with others to make one body politic under one government, puts himself under an obligation, to every one of that society, to submit to the determination of the majority, and to be concluded by it;
p. 14-15