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Taxation as Extortion
LFET ^ | Tibor R. Machan

Posted on 12/29/2002 11:53:02 PM PST by Sir Gawain

Taxation as Extortion

by Tibor R. Machan

Liberty is incompatible with taxation. This despite that famous saying by Oliver Wendell Holmes that “Taxation is the price we pay for civilization.” In fact, taxation is a most uncivilized way of obtaining funds, given that it amounts to nothing less than extortion.

Just think of it: You go to work for some company and are told you will receive a certain wage but actually receive but a fraction of what you have been offered. Why? Because a substantial portion is sent not to you, who earned it, but to other people. Why? Because if it isn't sent to them, they will declare the company criminal and sick the police on it. So, the company is coerced to take part of your earnings and divert it to those who have this power to make them do so.

If this isn't exactly like what the Mafia does when it engages in extortion I don't know what is. Yes, some of the funds extorted will be used for purposes that may actually benefit you and some who are extorted don't protest. But maybe that's true of what the Mafia takes from those whom it extorts, as well. And it doesn't matter because what is wrong with extortion isn't what the money is used for, but how it is obtained, namely, coercively.

Often it is Robin Hood who is held up as the role model for justifying taxation: Didn't he “steal” from the rich to “give” to the poor? Well, not, not really.

Robin Hood did just the opposite: He stole from those who stole from the poor and returned the loot to the rightful owners. In those days the upper classes, from the king to all his cronies, routinely engaged in extortion. They disguised this, however, with the phony claim that everything belongs to the king and his cronies. Yes, monarchs and those who rationalized monarchy spun this fantasy and managed to sell it to the people that the monarchs were the rightful owners “of the realm,” that they had a “divine right” to rule us. This way when the bulk of the country went to work on the farm or wherever, they had to pay “rent” to the monarch and his cronies.

Of course, if I live in your apartment, I pay you rent. It is your apartment, after all, so you have it coming to you. But what if you got your apartment by conquest, by robbing a bunch of people of what belongs to them? That is mostly how the monarchs got to rule the realm, by conquest. By all rights it is the folks who were working in the realm — on the land and elsewhere — who actually owned that realm, the monarchs being the phony, pretend owners, nothing better. But since they managed to bamboozle a great many powerless folks into believing that they did own the realm, the “rent” had to be paid.

Since, however, the American Revolution put the lie to this monarchical ruse, the institution of taxation could not be passed off as some kind of legitimate rent taking. That major political change showed once and for all that monarchs were sophisticated thugs who ran roughshod over the rest of the people, who violated their basic natural rights all over the place, by robbing and conscripting them.

Yet, because of the idea that we do need to have our rights protected by some means that involve costs, taxation remained a feature of the society that followed the change from monarchy to constitutional republicanism. Not a lot of taxation, mind you, because it seemed pretty clear to the Founders that taxation is in fact extortion. But they didn't see some other, legitimate, morally acceptable way of collecting the funds needed to pay government for its service of securing our rights. Yet, they might have.

There are other ways governments could be paid for their service of securing rights that couldn't exist without legal protection. Contract fees, not taxation, could solve the problem.

But this alternative, legitimate method wasn't in the cards following the revolution, so taxation remained, albeit in a rather modest form. In time, however, it got out of hand.

After all, if the Mafia just took a tiny fraction of income from its victims, most would probably put up with it all rather than resist. But when the amount moves on to 25 to 70 percent, it turns into big time extortion. And that is how we stand now with taxation — it has become big time extortion.

Some respond to this by noting that in other countries taxation is much higher. Sure, because they are even farther from having lived up to the spirit and letter of the revolution that America experienced, namely, removing power from government and returning it to where it belongs, the individual citizens. After all, it is America that is the leader of the free world, with a lot of other countries, including most of those in Western Europe, way behind. At least that is how it was supposed to happen.

Instead, however, the American Revolution was betrayed and the U.S.A. has undergone a reactionary period in which it reverted, substantially, to the policies of earlier systems of government. This Europeanization of America is a shame, a damned shame. And it needs to be identified as such to have any chance of being arrested.

The first step is to acknowledge, unapologetically, that the institution of taxation is not a civilized but rather a barbaric method to fund anything, because it amounts to nothing less than outright extortion, a gross violation of human liberty.


Machan, who teaches at Chapman University in Orange, California, advises Freedom Communications, Inc., on public policy matters. His most recent book is Initiative — Human Agency and Society (Hoover Institution Press, 2000). His email address is Tibor_R._Machan@link.freedom.com.



TOPICS: Editorial; Government
KEYWORDS: taxreform
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1 posted on 12/29/2002 11:53:02 PM PST by Sir Gawain
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To: AAABEST; Victoria Delsoul; Fiddlstix; fporretto; Free Vulcan; Liberty Teeth; Loopy; MadameAxe; ...
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2 posted on 12/29/2002 11:53:28 PM PST by Sir Gawain
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To: Sir Gawain
Somebody help me understand where my thinkng has gone wrong.

As it appears "Government People" pay NO TAXES at all!

All the money collected as "taxes" goes into a bucket. The Government people get paid out oif this bucket. When tax time comes they just give a little of what they took back to the bucket.

Who filled that bucket? Not them!

It is no wonder the economy sucks. Everyone is "in the wagon", and damn few left to pull the damn thing.
3 posted on 12/30/2002 5:04:21 AM PST by RISU
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To: *Taxreform
http://www.freerepublic.com/perl/bump-list
4 posted on 12/30/2002 8:25:07 AM PST by Free the USA
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To: Sir Gawain
good post
5 posted on 12/30/2002 8:46:43 AM PST by OWK
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To: Sir Gawain
BTTT.
6 posted on 12/30/2002 8:50:10 AM PST by NittanyLion
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To: NittanyLion
Good to see you.

(hope your holiday was pleasant)

7 posted on 12/30/2002 9:11:20 AM PST by OWK
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To: OWK
Good to see you. (hope your holiday was pleasant)

Nice to see you as well. I'm around much less frequently than in the past. The holidays were great - we enjoyed a white Christmas for the first time in recent memory. Just enough to put folks in a good mood, without hampering travel.

And yours?

8 posted on 12/30/2002 9:18:39 AM PST by NittanyLion
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To: NittanyLion
I haven't been around as much either (been working away at a new career)...

The holidays were quite pleasant for me (and I enjoyed the same White Christmas)

9 posted on 12/30/2002 9:20:23 AM PST by OWK
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To: OWK
Happy New Year to you and yours old friend.

Regards,

L

10 posted on 12/30/2002 9:23:56 AM PST by Lurker
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To: Lurker
How the hell have YOU been?

I was just talking about you a few days ago...

11 posted on 12/30/2002 9:27:48 AM PST by OWK
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To: OWK
I haven't been around as much either (been working away at a new career)...

Same reason here. Good seeing you again - and good luck in the New Year.

12 posted on 12/30/2002 9:28:47 AM PST by NittanyLion
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To: NittanyLion
Thanks, and to you as well.

I'm sure we'll cross paths on occasion.

13 posted on 12/30/2002 9:33:35 AM PST by OWK
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To: Sir Gawain
it seemed pretty clear to the Founders that taxation is in fact extortion.

I thought it seemed pretty clear to them that taxation without representation is in fact extortion.

14 posted on 12/30/2002 9:38:51 AM PST by Taliesan
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To: Sir Gawain
“Taxation is the price we pay for civilization.”

Taxation is the price we pay for NOT being civilized.

15 posted on 12/30/2002 9:44:24 AM PST by Protagoras
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To: Sir Gawain
If this isn't exactly like what the Mafia does when it engages in extortion I don't know what is.

Except that it isn't "exactly like" it. One material difference between an elected government and the Mafia is, well, the election. Other than that, they're exactly alike.

16 posted on 12/30/2002 9:45:29 AM PST by Taliesan
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To: Taliesan
I thought it seemed pretty clear to them that taxation without representation is in fact extortion.

Founders notwithstanding... isn't taxation (the involuntary seizure of property) theft?

If not, why not?

17 posted on 12/30/2002 9:52:56 AM PST by OWK
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To: Taliesan
One material difference between an elected government and the Mafia is, well, the election.

Does an election add moral standing to theft?

If your neighbors conspire and vote before stealing your lawn tractor... are their actions morally justifiable?

18 posted on 12/30/2002 9:54:37 AM PST by OWK
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To: ThomasJefferson
Taxation is the price we pay for NOT being civilized.

Ding.

19 posted on 12/30/2002 9:55:44 AM PST by OWK
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To: OWK
I stole that from the Cato Institute. It's paraphrased somewhat too.
20 posted on 12/30/2002 9:59:32 AM PST by Protagoras
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