This is the 2nd of a series of threads on Libertarianism in practice. I’m hoping this helps get us away from endless debate about “what is Libertarianism” by focusing on specific issues instead of broad, sweeping generalizations. I will try to do these once per week, but I can’t promise I won’t miss some weeks.
This week’s topic is: Taxes
This is a topic where I think you are going to see a lot of variation among Libertarians. Many pure Libertarians are going to say that any tax is antithetical to a Libertarian society. That the government may charge fees for services, but cannot tax goods or income or property. Others take a less pure line and agree that some taxes are inevitable.
I’m open to being corrected, but my understanding is that Libertarians believe that taxes, if they exist at all, should be as low as possible, should be as uniform across the population as possible, and should not be used to foster or discourage certain behaviors, and should have the sole purpose of raising revenue to fund essential and legitimate government services. No taxes to support the arts, scientific research, to promote solar power or encourage drilling for oil, or to give money to other countries, or to build up a military in order to protect countries other than our own.
Talk amongst yourselves! I will be curious to see if there are any “no taxes, period” type of Libertarians posting here.
First Debate Point: Is this something that virtually all American Libertarians would agree on? (As noted, I’m not 100% certain, as I think this is a contentious topic. The Libertarian Party’s website has a page devoted to taxes but it only talks about cutting taxes, not eliminating them. I think a significant portion of Libertarians would go the “no taxes” route, but that’s a difficult position to put forward.)
Second Debate Point: Is this a good or bad thing? (I think the blind adherence to “no taxes” is a bad thing, as I don’t think you can have enough of a government to maintain civil society without some level of taxation. However, I do think the government should raise taxes with one goal in mind: raise money to fund essential services and make the tax as simple as possible. I am firmly against the government trying to foster or discourage certain behaviors with the tax code. If we have an income tax, tax all income equally. If we have a consumption tax, tax all consumption equally.)
Third Debate Point: Are there institutions in the private sector that could/should replace the strong arm of the government in taking care of some of the functions it currently performs? (I do think charitable institutions would be better funded if taxes were much lower and welfare was not so readily available thru the government. We could also introduce fee for service policies in some areas, such as the courts for contract law or tort law. But I’m doubtful we could privatize everything, and so cannot take the position that we don’t need any taxes at all.)
n.b.: Although I am a small “l” libertarian, I am not a member of the Libertarian Party, nor do I believe that a pure Libertarian state would be stable and I would not advocate for it.
Link to thread concerning Topic 1: Civil Rights.
(I already asked the mods to correct the thread title. Should be “Week 2”, not “Week 1”)