Taxation: Difference between revisions
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Taxation is [[money]] [[coercion|coercively]] extracted from the populace by an agent, typically the [[state]].<ref name="Rothbard_Taxation">[[Murray N. Rothbard]]. [http://mises.org/rothbard/mes/chap16a.asp "4. Binary Intervention: Taxation"], [[Power and Market]], online version, referenced 2010-12-13.</ref> It is a form of [[binary intervention]], creating a hegemonic relationship between the state and the citizen. | '''Taxation''' is [[money]] [[coercion|coercively]] extracted from the populace by an agent, typically the [[state]].<ref name="Rothbard_Taxation">[[Murray N. Rothbard]]. [http://mises.org/rothbard/mes/chap16a.asp "4. Binary Intervention: Taxation"], [[Power and Market]], online version, referenced 2010-12-13.</ref> It is a form of [[binary intervention]], creating a hegemonic relationship between the state and the citizen. | ||
==Taxpayers and Tax Consumers== | ==Taxpayers and Tax Consumers== | ||
Funds from taxation must be taken from economic actors and then provided to other economic actors. | Funds from taxation must be taken from economic actors and then provided to other economic actors. An actor can fall into one of two categories: taxpayers and tax consumers. | ||
*A '''taxpayer''' is a person who pays more tax than he or she receives. | *A '''taxpayer''' is a person who pays more tax than he or she receives. | ||
*A '''tax consumer''' is a person who receives more funds from taxation than he or she pays.<ref name="Rothbard_Taxation" /><ref name="Calhoun">John C. Calhoun. [http://www.constitution.org/jcc/disq_gov.htm "A Disquisition on Government"], referenced 2010-12-14.</ref> | *A '''tax consumer''' is a person who receives more funds from taxation than he or she pays.<ref name="Rothbard_Taxation" /><ref name="Calhoun">John C. Calhoun. [http://www.constitution.org/jcc/disq_gov.htm "A Disquisition on Government"], referenced 2010-12-14.</ref> | ||
Taxpayers and tax consumers necessarily have conflicting interests, as tax consumers benefit from the funds expropriated from taxpayers. Taxpayers may only benefit indirectly from the services that the tax consumers provide, often called "public services". This contrasts with the producer-consumer relationship, wherein two economic actors will exchange if and only if the exchange is mutually beneficial. Because taxpayers cannot choose to decline paying tax, there is no guarantee that tax consumers will confer adequate, or even any, benefit to taxpayers. | |||
==References== | ==References== | ||
<references /> | <references /> | ||
==Links== | |||
* [http://mises.org/daily/4820 Soak-the-Rich Taxes: Fail!] by Robert P. Murphy, November 2010 | |||
* [[Wikipedia:Tax|Tax]] on Wikipedia | |||
{{Stub}} | {{Stub}} | ||
[[Category:Interventions]] | [[Category:Interventions]] | ||
Latest revision as of 17:11, 13 December 2010
Taxation is money coercively extracted from the populace by an agent, typically the state.[1] It is a form of binary intervention, creating a hegemonic relationship between the state and the citizen.
Taxpayers and Tax Consumers
Funds from taxation must be taken from economic actors and then provided to other economic actors. An actor can fall into one of two categories: taxpayers and tax consumers.
- A taxpayer is a person who pays more tax than he or she receives.
- A tax consumer is a person who receives more funds from taxation than he or she pays.[1][2]
Taxpayers and tax consumers necessarily have conflicting interests, as tax consumers benefit from the funds expropriated from taxpayers. Taxpayers may only benefit indirectly from the services that the tax consumers provide, often called "public services". This contrasts with the producer-consumer relationship, wherein two economic actors will exchange if and only if the exchange is mutually beneficial. Because taxpayers cannot choose to decline paying tax, there is no guarantee that tax consumers will confer adequate, or even any, benefit to taxpayers.
References
- ↑ 1.0 1.1 Murray N. Rothbard. "4. Binary Intervention: Taxation", Power and Market, online version, referenced 2010-12-13.
- ↑ John C. Calhoun. "A Disquisition on Government", referenced 2010-12-14.
Links
- Soak-the-Rich Taxes: Fail! by Robert P. Murphy, November 2010
- Tax on Wikipedia