Far from some enlightened institution, taxation began when conquerors realized that formal and continuing appropriation of a subject population's wealth was preferable to hit-and-run pillaging. For this to work, however, the rulers needed to convince the peasants that the regime would protect them from predators in return for their regular remittances. That's right: It was a protection racket, from which the racketeers and their cronies profited handsomely. For the taxpayers, there was little choice in the matter. They weren't buying protection as people buy insurance in the market, and they weren't paying dues as they would later pay dues to mutual-aid societies. They paid or they were punished. The ideology of benevolent state protection reduced enforcement costs because the ruled outnumbered the rulers and widespread tax resistance would have doomed the regime. Things have changed little in our time.
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Wednesday, December 12, 2012
That's a Nice Economy You Have There. I'd Hate for Anything to Happen To It
On Reason.com, a little perspective on what taxes really are from Sheldon Richman (Ha! Get it? He's a Richman, so he's against taxes! Golly, wordplay is fun.):
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