Why Taxation Is Not Theft

Just as all political debates inevitably end with someone making a Hitler comparison, all debates with libertarians sooner or later involve the claim that taxation is theft. It doesn’t matter whether you are discussing the welfare state, universal healthcare or a TV licence, at some point a libertarian will accuse the government of acting like the mafia and stealing people’s money (just the last day a commenter asked me to “stop promoting the use of force against me or my family“, by which he meant don’t regulate bitcoin). Of course we all know this argument is melodramatic hyperbole, but it would be useful to spell out why. Let me use an analogy that I think will best get the point … Continue reading “Why Taxation Is Not Theft”

March 22, 2014EconomicsCoercion, Consent, Economics, Force, Government, Libertarian, Nonsense, Politics, State, Taxation, taxes, Theft, Theory, Wrong Leave a comment

The Mythical Laffer Curve

Conservatives everywhere condemn the use of tax increases for fear of the Laffer Curve. This is the idea that if taxes are too high, people will lose the incentive to work and therefore revenue will actually decrease. It is most famous for its counter-intuitive argument that a tax cut could increase revenue. Unfortunately there is little or no evidence to support this claim. History clearly shows that cutting taxes does not increase revenue. The Laffer curve is a political idea used to justify tax cuts for the rich. It is not based on sound economics. Most economists know the Laffer Curve isn’t true. An IGM survey of economists found that not a single one of them agreed that a tax … Continue reading “The Mythical Laffer Curve”

September 7, 2012The othersDemocrats, Disincentive To Work, Economic Theory, Economics, Economy, Election 2012, Entrepreneurs, Free Market, Incentive, Laffer Curve, Myth, Obama, Opinion, Politics, Punish Job Creators, Reaganomics, Republicans, Supply Side, taxes, Taxes Penalise Rich, Taxes Too High, Wrong Leave a comment