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LIFE WITHOUT TAXES
A Libertarian Outlook
by Gerald Schneider, Ph.D.
Death and taxes--can we escape them? Well, death is
biological, and I do not know how to avoid it. But taxes are
political. And taxes, at least forced taxation, can be ended
politically!
How? By reforming our country into one where citizens pay
only for wanted and used government services. That, after all,
is the original American dream.
To create such societies without chaos means switching from
taxes to user fees to support government activities. Private
parties would also have to be allowed to compete with government
in providing desired services.
What follows are realistic guidelines on how to achieve a
nation--an America--based on voluntary association:
Freeze New Taxes
First, there must be a freeze on compulsory new taxes of any
kind. Government would have to live within its current income
level. But government employees with no immediate employment
prospects would not be fired. And persons dependent on
government patronage for survival would suffer no cutbacks.
Executive government agencies other than the military and
police needed to protect life and property would be terminated.
Personnel from closed agencies would be asked to fill positions
in remaining agencies vacated by death, retirement, and
resignation. Money derived from closed agency budgets would be
used for necessary retraining. No new government employees would
be hired for agencies due for future extinction.
Agency phase-out would be proportional to dropout rates for
personnel. Forced unemployment is avoided.
Money saved from closed agency budgets would also be offered
as bonuses to spur voluntary exodus from government. Caps on
salaries and promotions in agencies headed for termination could
further stimulate unforced departure. Still another incentive to
freely leave government work could be exemption from all income
taxes.
Phase Out Government Programs
A second major thrust would be phase-out of all government
retirement, entitlement, and subsidy benefit programs. Methods
used would ensure that needy persons benefiting or about to
benefit from such programs are not hurt.
Social security and other government pensioners, or those
near to retiring, could be paid off in a lump sum. Payoff money
would come from sale of government assets, and funds from closed
government agencies. Retirees would be free to invest the large
amounts of money received any way they pleased. Political
uncertainty about retirement would be ended.
Younger persons could arrange for their own retirement,
using money otherwise taken from salaries for social security
payments. There would be no required government social security
system.
Massive tax credits would be offered to individuals and
groups to assume government welfare, education, public works,
environmental protection, and other social services. Those tax
credits would be warranted, given the savings to government by
not supplying those services.
Alternatives to Taxation
The judicial system would be made self-supporting by
requiring convicted felons to pay court and related costs.
Police and fire services could also be paid this way,
supplemented by private subscription.
Military costs, cut by about two thirds, could be funded in
several ways. Donations and a national lottery are among the
possibilities. Many think taxes cannot be averted here, but
alternatives to forced taxation should be tried.
Laws covering how we should behave could be drastically
reduced, thereby limiting the need for elected legislators.
Common law, which often does not require a lawyer, would suffice
in most cases. Salaries and expenses of elected official still
needed, likely to be part-timers, could be funded voluntarily or
through service fees.
Finally, the 16th Amendment to the U.S. Constitution, the
legal basis of our income tax, could be repealed. Americans need
never again fight taxation without representation!
Reprinted from THE WHEATON NEWS of Wheaton, Maryland, Jan.
21, 1988. For a one year subscription to Mr. Schneider's
biweekly "Libertarian Outlook" column, send $15 to: Gerald
Schneider, 8750 Georgia Ave., Suite 1410-B, Silver Spring, MD
20910. Copyright 1988 Gerald Schneider, Ph.D.
(This is the text of one of a series of eight topical Libertarian
outreach leaflets produced by the Libertarian Party of Skagit
County, WA. The leaflets have a panel with National LP member-
ship information, with a space for other LP groups to stamp their
own address and phone number. Samples and a bulk price list/
order form are available from: Libertarian Party of Skagit
County, P.O. Box 512, Anacortes, WA 98221.)