no third solution

Blogging about liberty, anarchy, economics and politics

Why Can’t We Secede?

November 20th, 2008

I read about a Zogby Poll a few months ago, that suggests something like one-fifth of Americans support the idea of secession (at least at the state level), unfortunately,

The more education a respondent had, the less likely they were to support secession – as 38% of those with less than a high school diploma would support it, compared to just 10% of those with a college degree.

I think the correlation here is: The more pro-State brainwashing an individual has received, the less likely he is to believe in anti-State ideas, like secession, or freedom.

In What Libertarianism Isn’t (Part 2), John from Blagnet inquires:

Why is it a violation of the Statist moral code to non-violently abstain from participating in State functions?

That’s a damn good question, Mike, and it’s one that few people have ever thought about answering. The key point here is that I’m always talking about non-violent abstention, and I will not recognize or respond to any straw-man arguments suggesting otherwise.

Anyways, imagine a State that decided to secede from the Union. In the context of the current government, of course it would not tolerable, the Constitution does not address the topic, instead permitting new States to be formed within the jurisdiction of existing states only upon Congressional approval according to Ariticle 4, Section 3.

This conveniently subjects State sovereignty to the very entity with which it may wish to sever all ties. But Article 4, Section 3 doesn’t really address secession. It only says that you can’t start gerrymandering the existing State to suit your desires, nor can you establish your own State to that effect. It does not address the possibility that some people might want no State at all, and these people are forbidden from pursuing that goal.

It is clear, then, that the people whose opinions matter most, don’t count, that the venerable “Consent of the Governed” is taken as an immutable absolute, that dissent or repudiation in practice is forbidden. If man is not free to withdraw his Consent, then it can never be said that he truly offered it, in the first place.

What should happen to those who wish to secede?

Let’s take our hypothetical one step further: imagine an individual who wanted to secede? Accepting the government’s claim to legitimacy (resting upon the foundation of the now defunct “consent of the governed”), is it acceptable to violently prevent this individual from exercising this choice? To take up arms against him? To force his acquiescence or his death?

By what right do men claim the moral authority to kill someone simply because of a disagreement? Can it be tolerable, under any circumstances, for the government (a government indisputably lacking consent) to kill these people, whose sole crime is an attempt to exercise their free choice to not belong? I submit that it cannot.

The good thing is that most people aren’t morally bankrupt enough to kill over a disagreement, so with that said, there is some modicum of hope. The bad thing, however, is that most people are just morally bankrupt enough to delegate that crime to someone else, someone who is willing to get his hands dirty.

How embarrassingly nonsensical is it, for a group of men to say, “We want you to be a part of our group, our enlightened ‘Society’ so badly that we’re willing to kill you if you reject our offer?”

It is worse than nonsensical. If you’re willing to kill someone, in order to get his cooperation, you’re clearly not interested in his cooperation. Your interested in enslaving him. It is a damnably brutish and subhuman appeal to violent force; it is ultimately the foundation upon which any appeal to government rests.

Comments on Comments #29

November 18th, 2008

Here’s the latest edition of my responses to your comments. If you’ve been left out, it will probably appear in a forthcoming edition.

+++

John at Blagnet followed up my post, with one of his own:Minarchist States and Basic Necessities, in which he dismantles arguments in favor of the holy triumvirate of minarchist libertarianism: the police, the courts, and national defense, often painted as basic necessities for a functioning society:

[T]hose types of things are not the most basic needs; food, water, shelter, and medical care are. Fire departments, defense from outside attackers, and criminal investigation/prosecution/punishment systems are very important in any remotely large society, but they are secondary needs. People have to be living healthily before they even consider those things relevant.

Good stuff, John. If you believe that a free market can provide the absolute necessities of life, then why can’t it also provide those secondary items?

+++

Responding to How to Destroy the Middle Class, Kip says Obama isn’t trying to kill 401(k) type retirement accounts. He’s right. It is, on the other hand, something that the Democrats are considering. I wonder of the Obamessiah would nix it?

In addition to the 401k, I noted that eliminating the mortgage interest deduction would be a tax hike of calamitous proportions.

Jeff Molby is not in favor of the mortgage interest deduction because it encourages people to maintain dangerously low levels of equity in their homes. As long as people can be persuaded that paying $1 in interest to a bank and receiving 33 cents of their own money back is a good idea, this will be true. It doesn’t change the fact that eliminating the interest deduction would be the biggest tax hike in history.

+++

1955Design left a comment on Can I Raffle My House?

I heard on today’s TV news that the owner had been instructed that what he was doing violated state gambling laws.

Go figure. The State is always eager to protect its monopolies, to which rhyddid alludes:

the State hates it when people compete with it … I wonder where the State draws the line? Schools use raffles for fundraisers all the time, giving away even cars sometimes… The State’s illogic continues to impress me with it’s depths.

Zach left a comment on Can I Raffle My House?

There is still a tax implication for the ‘buyer’ He could deduct the $100 from his taxes, but he would have to pay taxes on the fair market value of the house minus the $100 bucks. I think the effective tax rate at that high of “income” is somewhere around 36%-40%. I can not remember off the top of my head.

All these people getting “free” houses on Extreme Home Makeover have to pay taxes on these things. Remember the Oprah car debaucle (sic)?

…The winner of the home would be f’ed.

I mentioned the tax implications for the buyer, that’s significant, and most people couldn’t handle it.

As for the Extreme Home Makeover comment, my understanding of the situation is that a loophole exists which allows the homeowners to avoid the capital gains tax associated with an enormous home makeover. According to USA Today, ABC Network “rents” the house for a period of time, and accordingly, the owners are not liable for improvements made during the rental period. Some tax pros don’t agree with that opinion.

According to the letter of the law, ABC’s stance seems hunky-dory. Of course, the IRS can always decide to retroactively change the interpretation of its rules. In any event, the recipient of the new house is always liable for higher property taxes resulting from the improvements.

+++

Josh left a comment on Medical Marijuana in Michigan.

Yes, lets maek pot legal so that we can be a country of stoners. Yay freedom!

Clearly, abstention didn’t improve his spelling and/or grammar.

+++

RG left a comment on How do taxes Destroy Productivity? He had a number of questions about taxes that I hope to have answered with What is an Appropriate Tax Rate? (And Other Questions).

+++

A number of people (some of whom are long-time Detroiters) seem to agree with my prognosis, that General Motors will go bankrupt. With each passing day, it looks more and more likely that they’ll get their bailout, though. This only makes things worse.

+++

Mike left a comment in Slavic (I think?) on Dog Blogging.

No to je také zlaté psícko!!!!

I have no idea what it means. In any event, it seems she somehow scratched her eye roughousing with a friends dog while we were dogsitting. She is doing much better and no longer wearing the cone.

+++

Thanks to Attack the System for plugging several of my posts in a recent digest.

+++

Thanks to Rolling Doughnut for plugging my post, If You Subsidize It…, describing the moral hazard of subsidies, especially with regards to pseudo-insurance programs underwritten by tax dollars.

What is an Appropriate Tax Rate? (and Other Questions)

November 18th, 2008

A reader asks several questions in response to my 11/5 post, How Do Taxes Destroy Productivity? I would like to take a few minutes to respond to his (her?) inquiries.

Is your argument about the NJ “vig” that NJ’s economy suffered as a result of this tax? That NJ experienced negative economic growth, or increased unemployment as a result of this policy? Also, since the boat industry lost 7,600 employees nationwide in a year, does your argument extend to the claim that a tax change in NJ caused job losses in other states?

I don’t know whether NJ’s economy suffered. I try not to deal in abstractions like “national economies” or “state economies.” The only thing that matters are personal economies, and I can tell you with absolute certainty, that at least 7,600 people were directly made worse off by the imposition of that luxury tax on yachts. Moreover, since the luxury tax failed to generate the expected revenue (because shortsighted politicians assumed perfect price inelasticity of demand for luxury yachts), the rest of the constituents who arguably depended on the goods and services to be thereby provided, also suffered.

Are you aware that most jobs in the U.S. are created in states with relatively high tax rates? Or that the major new growth industries here (i.e. computers, media, biotech, finance) are all based in the highest tax states of CA, MA, NY, and NJ? Discuss.

I’d be glad to discuss, if you could frame it a little more clearly. When you mention “relatively high tax rates,” are you talking about sales tax? New York has a relatively low sales tax (4%), and although NJ and CA have high sales tax rates, so do Tennessee, Mississippi, and Nevada.

Are you talking about income tax? Although California is high on the list of income tax rates, there are a number of states with higher income taxes than NY (6.85% and MA (5.3%) including such dynamos of productivity as Maine (8.5%), Vermont (9.5%), Arkansas (7.0%) and Idaho (7.8%)

In terms of corporate tax rates, by State, the highest are found in IN, PA, DC, MA, AL, RI, and LA. California is #9 on the list, New Jersey comes in at #20, and New York is a paltry #22.

Moreover, there are a number of reasons that some of these states (CA and NY, in particular) might be chosen despite their onerous sales and/or income taxes: If you’ve never been, California is a fucking beautiful state. New York is the financial hub of the world. Both locations offer prestige, and convenience for international trade routes, etc.

In any event, I don’t think the relationship between tax rates and job growth is nearly as strong as you suggest.

Out of curiosity, what would you consider to be an appropriate tax rate?

I will agree for the sake of argument that such a thing as “an appropriate tax rate” exists. Of course, implementing additional taxes on an arbitrary and ad hoc basis would seem to violate any notion of equity or appropriateness. Setting aside the obvious issues I have with taxation as a general principle, let’s remember that in the context of this discussion, I was writing about a specific instance of an arbitrarily imposed “luxury tax”, and the devastation it caused to the shipbuilding industry.

Again, I would like to remind you that in this particular case, the revenue was never realized to provide whatever services would have arguably “justified” the higher taxes.

Do you believe there is a connection between taxes and any services provided by the government? Another way, do our taxes get us anything, or are they solely a redistribution of wealth? Should we take the vig to 0% and have our military earn its money by operating businesses (as in Pakistan)?

Maybe, if we took the vig to 0%, our “leaders” could stop throwing rocks at hornets’ nests in foreign lands? The United States is surrounded by relatively neutral neighbors, and 3,000+ miles of ocean. A state-sponsored, military assault that would require a 1MM man defensive army is inconceivable.

There’s a connection between the taxes you paid and the detainees who were raped and sodomized and urinated on at Abu Ghraib. There’s a connection between the taxes you pay and the bombs dropped indiscriminately on brown people that speak funny languages and wear scarves on their heads. There’s a connection between the taxes you pay, and the systematic exploitation of poor foreigners. There’s a connection between the taxes you pay, and any person who’s ever been imprisoned for smoking a joint.

Of course there is a connection between taxes and services that the government pays for, but by the real question is, “Why does the government get the sole privilege of providing these things?” and furthermore, “Why am I obligated by force of law, to consume these things?” or rather “Why will someone shoot me if I don’t want to buy them?”

There is a gun in the room… Most people are comfortable pointing it at someone else. I’d prefer not to have it in the room, at all.

no third solution

Blogging about liberty, anarchy, economics and politics