| > Voluntary taxation is a fringe theory with some fairly serious flaws... the primary one in my opinion being that it erodes democracy by pushing even more influence over government into the hands of people with deep enough pockets to pay more (but only when they're happy). The incentives in that kind of system would be all wrong. It's a side issue to the one we're discussing, but ... that's what we have right now, and the incentives are in fact all wrong. > By all means have a go at defending voluntary taxation, I'd be interested to hear your opinion. So, roughly: 1) It's morally wrong to initiate force. Compelling someone to pay for something is as wrong when performed by the Government with a majority mandate, as it is when performed by a mugger. 2) Many other vital services are already paid for voluntarily, by those who benefit from them, and provided for those who can't afford them through private charity. There's nothing special or unique about Government services as opposed to, say, medicine or food. 3) Core Government services are actually pretty cheap - we worked out around NZ$2,500 / adult / year in NZ back in 2000 or so. I hope the vast majority of people would stump up that kind of cash in the absence of any other taxation. If not, I suspect that society is broken in ways that can't be fixed by compulsory taxation, either. Rothbard goes into a bit more detail ;) here: https://mises.org/library/man-economy-and-state-power-and-ma... |
This is, in my view, a pretty naive (maybe to be polite I should say highly optimistic) view of human nature. Even if a majority of people planned to pay it I suspect many would end up not paying it most months as other priorities intervened.
Even if, say, 60% of people did end up paying the voluntary "taxation", a large number would pay nothing. The total sum required would be the same and those willing to pay would have to pay significantly more or there would be a huge shortfall. This would be extremely unfair; freeloaders would get a huge effective pay rise and consequently more influence in society.
In practical terms it would be very difficult to pay for services if if it was not possible to predict how much tax was to be gathered from month to month. Government income would fluctuate wildly. Employment in the public sector would be very risky. The economy would be extremely volatile to say the least. Planning for the future would be next to impossible.
There are many more ethical and practical problems with this idea. I could go on.