Many Libertarians and Tea Party protesters like to claim that taxation is theft. The idea is that the Federal government does nothing to earn that money. It just takes our hard earned cash and then takes credit for redistributing the wealth. So, no value is added. This argument is so weak as to be laughable.
First, of course value is added. The Federal government adds the following values: oversight and regulation; services and goods provided or guaranteed (e.g., public roads, internet, public schools, state universities, utilities, military, police, emergency services, postal service, medicare, medicaid, disability, 40 hr work week, overtime, safe working conditions, child labor laws, abolition of slavery, Constitutional rights and freedoms, jury of your peers, etc); and on and on. Yes, the government redistributes wealth in doing all of this. So?
One response is that, no matter how good the benefits may seem, taxation is still theft.
One argument is that we have no choice in being taxed, we aren’t freely giving to the government. My response is that each of us is as free to leave the country as we are to leave our jobs. In some countries, people aren’t free to just leave, but that isn’t so in the United States. You can seek citizenship or asylum in another country. You can disappear into the wilderness and no IRS agent will track you down in the wilderness.
The other argument is that, even if we are free to give taxes or free to leave this society that is funded by taxes, the government still hasn’t earned the money it redistributes. Just because politicians provide services and goods that keep the public happy, it doesn’t mean politicians have the right to our money in the first place. Why not have a voluntary tax? To be honest, it’s as voluntary as your job. If you don’t pay your taxes, there are legal consequences. If you don’t show up for work, there are consequences as well. Did your employer earn your labor? No. We live in a society where we are forced to work or else be homeless, and the opportunities for self-employment are few and difficult (with most small businesses failing because our capitalist system favors big businesses).
Similar to the politician, what does the owner or CEO of an international corporation do to earn so far beyond the worker who actually makes things in the factory? Nothing tangible, for sure. Also, what does the international corporation do to earn the resources it takes from nature which took thousands or millions of years to form? Nothing. Like the politician, they just took it. Why has it been standard practice for both corporations to swindle land from the indigenous or else terrorize them into leaving? Didn’t the indigenous people earn those natural resources for having lived there for thousands of years?
Why is it that those who criticize taxation tend to do so in defense of capitalism and often even big business? If you think the actions of politicians is unfair, then to be fair you should also consider unfair the actions of business owners, CEOs and upper management. To be honest, it’s the workers who actually make things, who keep the economy going. In the past, prior to capitalism as we now know it, the person who made things was the typically same person who sold it and profited from it.
If government is theft, then capitalism is even greater theft. Politicians make relative little money as politicians, but business owners and CEOs make massive amounts of money. The only reason politicians do the bidding of corporations (i.e., owners and CEOs) is because politicians know they have highly profitable corporate jobs waiting for them (as lobbyists to encourage other politicians to further do the bidding of corporations).
So, there ya go. One can still criticize the government for not being perfectly fair, but if you don’t apply the same criticisms to capitalism you’re a hypocrite. Of course, many (specifically Libertarians) will gladly admit our capitalist system is imperfect and unfair, but they’ll make the unfounded claim that it’s not real capitalism, it’s not a free market. Well, it’s the only capitalism we’ve ever had. Yes, there has been an occasional experiment to implement a different capitalist system, but no such experiment has been implemented on the largescale and the experiments on the smallscale don’t tend to last long. If you’re going to defend capitalism based on an ideal, then it’s hypocritical to criticize those who defend our democratic government based on their own ideals.
I covered all the possibilities I could think of, but no doubt the pro-capitalist/anti-government types would have further arguments about why their idea/ideal is better than the ideas/ideals of everyone else.