taxation is theft

Home » taxation is theft

Do Libertarians Support a National Sales Tax?

in Communicating Liberty, Liberator Online, Libertarian Answers on Issues, Libertarian Stances on Issues, Taxes by Mary Ruwart Comments are off

(From the Ask Dr. Ruwart section in Volume 19, No. 7 of the Liberator Online. Subscribe here!)

Question: I have read about proposals to eliminate the income tax and replace it Collect Taxwith a consumption tax (national sales tax). This seems like a very good idea. First, it would mean foreign manufacturers would pay almost the same tax as domestic ones. Second. it would remove the need for large accounting and legal departments in corporations, and would certainly simplify the paperwork of small businesses. Third, it would eliminate the ability of the wealthy to utilize loopholes in the present tax system. There are many more benefits I can see, and I can’t see a downside. Am I missing something? Do libertarians support this idea?

My Short Answer: Libertarians recognize that taxation of any kind is theft and therefore do not support taxation. However, some dedicated libertarians have been working to replace the income tax with a consumption tax, like the one you’ve outlined.

Among other things, they believe that people would feel the bite much more if everything they bought came with a double-digit sales tax. Tax increases would be more visible — and more unpopular for politicians to propose. The abuses perpetrated by the IRS would also end. Public support for abolishing taxes altogether would increase.

However, one danger many libertarians see in proposing this switch is the possibility that we would end up with a national sales tax AND an income tax.

Why not simply get rid of the income tax and replace it with nothing, as libertarian presidential candidates like Ron Paul and Harry Browne have proposed?

As Ron Paul told the New York Times in 2008: “I see a consumption tax as being a little better than the personal income tax, and I would vote for the Fair Tax if it came up in the House of Representatives, but it is not my goal. We can do better. … We could eliminate the income tax, replace it with nothing, and still fund the same level of big government we had in the late 1990s. We don’t need to ‘replace’ the income tax at all.”

Ron Paul is right. If all we did was to restrict government to its constitutional limits, we could provide for defense and other necessary functions with constitutionally-permitted excise taxes.

Then, libertarians could start working on getting rid of those, too!

LEARN MORE: Suggestions for further reading on this topic, pro and con, from Liberator Online editor James W. Harris: is the website of Americans For Fair Taxation, a non-profit organization that argues for the Fair Tax. Their site includes an extensive FAQ that answers common questions about the proposal.

* “There Is No Such Thing as a Fair Tax“ by Laurence M. Vance, Mises Daily, December 12, 2005. Vance says advocates of the Fair Tax are right on the evils of the income tax, but the Fair Tax isn’t the solution. He lists 17 problems with the Fair Tax from a libertarian perspective.

* “Against the FairTax Proposal“ by Jim Cox,, March 29, 2005. Additional criticisms of the Fair Tax from the author of The Concise Guide to EconomicsMinimum Wage Maximum Damage, and The Haiku Economist, the latter two published by the Advocates.

* * * * * * * * * *
Short Answers to the Tough QuestionsGot questions?  Dr. Ruwart has answers! If you’d like answers to YOUR tough questions on libertarian issues, email Dr. Ruwart

Due to volume, Dr. Ruwart can’t personally acknowledge all emails. But we’ll run the best questions and answers in upcoming issues.

Dr. Ruwart’s previous Liberator Online answers are archived in searchable form.

Dr. Ruwart’s latest book Short Answers to the Tough Questions, Expanded Edition is available from the Advocates, as is her acclaimed classic Healing Our World.

They Said It… With Barack Obama, Penn Jillette and More

in Liberator Online by James W. Harris Comments are off

Penn Jillette“So many people say, ‘You know, your taxes aren’t taken by force,’ and that’s foolish. If you don’t pay your taxes and you don’t answer the warrant and you don’t go to court, eventually someone will pull a gun. Eventually someone with a gun will show up.” — renowned magician, author and libertarian Penn Jillette, interview, The Daily Caller, May 6, 3013.

WAR ON TERROR IS JUST GETTING STARTED: “At least 10 to 20 years.” – Michael Sheehan, U.S. Assistant Secretary of Defense for Special Operations and Low-Intensity Conflict, estimating at a May 16 U.S. Senate hearing how much longer the 12-year-old “War on Terrorism” will go on.

Jonathan TurleyOBAMA WORST PRESIDENT EVER FOR CIVIL LIBERTIES: “From unilateral military actions to warrantless surveillance… the painful fact is that Barack Obama is the president that Nixon always wanted to be. Four decades ago, Nixon was halted in his determined effort to create an “imperial presidency” with unilateral powers and privileges. In 2013, Obama wields those very same powers openly and without serious opposition. The success of Obama in acquiring the long-denied powers of Nixon is one of his most remarkable, if ignoble, accomplishments. … Obama has not only openly asserted powers that were the grounds for Nixon’s impeachment, but he has made many love him for it. More than any figure in history, Obama has been a disaster for the U.S. civil liberties movement.” — liberal constitutional lawyer Jonathan Turley, “Nixon has won Watergate,” column in USA Today, March 25, 2013.

“Unfortunately, you’ve grown up hearing voices that incessantly Barack Obamawarn of government as nothing more than some separate, sinister entity that’s at the root of all of our problems…. They’ll warn that tyranny is always lurking just around the corner. You should reject these voices.” — President Obama’s commencement address at Ohio State University on May 5. That’s right, kids, don’t worry your pretty little heads about drone assassinations of U.S. citizens, unconstitutional wars, sky-high taxes, IRS snooping, government recording your emails, the War on Drugs, the U.S. spy empire…

JAY LENO ON HOW TO REPEAL OBAMACARE: “This week will mark the 37th time House Republicans have tried to repeal Obamacare. If Republicans really wanted to do away with Obamacare they should just endorse it as a conservative non-profit and let the IRS take it down.” — Jay Leno, May 16, 2013.

THESE ARE THE GOOD OLD DAYS: “This week marks the 40th anniversary of the Watergate hearings. For those of you too young to remember, back then the administration had an enemies list. They were spying on reporters, and they used the IRS to harass groups they didn’t like. Thank God those days are gone forever.” — Jay Leno. May 15, 2013.
Jimmy Fallon
SPYING ON THE MEDIA: “It was just revealed that the Department of Justice secretly recorded the phone calls of AP journalists for two months. Obama promised reporters that the incident will be immediately investigated — by the Department of Justice.” — Jimmy Fallon, “Late Night With Jimmy Fallon.” May 14, 2013.

John Stossel“Forty-three million Americans moved from one state to another between 1995 and 2010 — about one-seventh of Americans. … Americans have moved away from high-taxed, heavily regulated states to lower-taxed, less-regulated states. Most don’t think of it as a political decision. They just go where opportunities are, and that usually means where there’s less government.” — libertarian journalist John Stossel, “Live Free or Move,” syndicated column May 8, 2013.

Steve Cohen (D-TN)

DEMOCRAT RIPS INTO DOJ ON MARIJUANA: “One of the greatest threats to liberty has been the government taking people’s liberty for things that people are in favor of. The Pew Research Group shows that 52 percent of people do not think marijuana should be illegal. And yet there are people in jail, and your Justice Department is continuing to put people in jail, for sale, and use, on occasion, of marijuana. That’s something the American public has finally caught up with. It was a cultural lag. And it’s been an injustice for 40 years in this country to take people’s liberty for something that was similar to alcohol. You have continued what is allowing the Mexican cartels power, and the power to make money, ruin Mexico, hurt our country by having a Prohibition in the late 20th and 21st century. We saw it didn’t work in this country in the 20s. We remedied it. This is the time to remedy this Prohibition, and I would hope you would do so.” — Rep. Steve Cohen (D-TN), criticizing Attorney General Eric Holder in the U.S. House of Representatives, May 15, 2013.