Is Taxation a Purchase or Extortion?

By Thomas Krehbiel

Today's random zen government thought involves taxes. I've observed -- on blogs and in real life -- that a lot of people seem to think that paying taxes also implies receiving some kind of preferential treatment or getting a say in how the government does business. They equate paying taxes with, for example, buying shares of stock in a company. They say, "As a taxpayer, I'm entitled to X, Y, and Z, more than someone who doesn't pay taxes."

I see taxes as, well, taxes. When you pay taxes, you're not buying anything -- all you get in return is a promise that you won't be locked up for failing to pay taxes. You pay so you don't draw the ire of the Internal Revenue Service. When you think about it, it's more like extortion than purchasing government goods or services.

Reader Comments

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1. Anonymous said,

The revolutionaries saw taxation without representation as bad. I agree.

Vince

2. Jeremy said,

Well, libertarians see taxation WITH representation as bad, too.

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