The Impossibility of “Taxation with Representation”
Whether you have watched The Sopranos, Goodfellas, or The Godfather, the gist of those stories is always the same: a mafia boss gets involved with a private person or sometimes a businessowner and demands a fee to be paid by midnight tomorrow, otherwise said person will lose a finger or two and maybe a kneecap as well. An analogy often made by libertarians is that the government operates similarly to the mafia. The government demands money in form of taxes, which they redistribute as they please. Both transactions work coercively, and while the government may not break your fingers, if you refuse, they can jail you or violate your property rights. You may or may not agree with this comparison, but the argument about the legitimacy of fiscal policies, especially taxation, is not only prominent in libertarian circles, but goes as far back as the American Revolution.
“No taxation without representation!” declared American colonists after having been subject to taxation by the British crown for many decades. They deemed the taxation to be illegitimate, as they were not represented in the British Parliament, and this became a prime reason for the American Revolution against the British Empire. But that was more than 250 years ago, so does that mean all those who pay their taxes nowadays are represented one way or another in the system we live in?
It would be possible to start by asking why taxation is required in the first place. Economists like Dr. Walter Block make good arguments for why total privatization of everything will work better and more efficiently than an entity of pol
Article from Mises Wire