no third solution

Blogging about liberty, anarchy, economics and politics

$200 Billion

January 14th, 2009

The amount of economic waste caused by complying with the nation’s tax code. Mind you: this is just the explicit cost of compliance. This figure is not inclusive of all the negative effects of onerous taxation.

A friend of mine, notorious for playing the “Devil’s Advocate”, once quipped about a mutual friend studying for his CPA, “What about so-and-so? What would happen to all the people who work in that industry? Should they just lose their jobs?”

Well, d’uh!

Accountants can do more than just complete tax paperwork. Perhaps the most valuable functions they perform are third-party, independent audits. To the extent that their income depends on tax, one might expect their remuneration to decrease. Some of them might lose their jobs, in which case they’d have to find employment in another, productive sector of the economy, viz. a sector of the economy that is not $200 Billion of dead-weight loss.

If you found out that one of your employees had been drawing an annual salary to shovel $100 bills into the furnace, what would you do?

Who Are the Real Free-Riders?

December 28th, 2008

One common argument for taxes is that people should pay for the things that they use. So, when the libertarian or the anarchist says “Taxation is theft!” (it really is!), someone will invariably reply, “If you don’t pay your taxes, what you’re really doing is stealing from people who provide those goods and services” or that by not paying for those goods and services, you are intentionally seeking a free-ride and therefore stealing from the other taxpayers.

What this argument neglects, however, is that there is a substantial proportion of the population (perhaps 50% or more) who don’t really pay taxes to begin with. Maybe they dont’ make enough money and get credits, maybe they are employed by the government and don’t really pay taxes, maybe they are welfare recipients, etc. When I say “Taxation is Theft!“, I don’t want to pay, people are quick to say that I’m the free-rider. I submit, respectfully, that I am no such thing, rather quite the contrary.

A piss-poor application of the Labor theory of value (i.e., it was produced and therefore must be paid for), the argument that non-payment of taxes amounts to theft is laughable as a moral imperative, since it magically ceases to apply to those people who don’t, won’t, or can’t produce value. This is just one paradox of the statist moral code: Only those productive members of society can be “free-riders” worthy of contempt and would be charged as criminals, yet it is perfectly acceptable for a man to pay no taxes if he produces nothing of any value.

Stated differently: It is perfectly acceptable to be a free-rider, unless you are a productive member of society.

Nobody ever chastises the poor, the welfare recipient, the government employees, etc., for not “paying their fair share”, despite the fact that these people don’t pay any share at all. Nobody ever says, “These people who produce nothing of value, yet consume the product of my labor, against my will, are the real thieves.” Instead, those of us who produce things of value, those of us who make the welfare state possible, those of us, upon whose backs society is carried, they call us thieves!

Do not accept that unearned guilt.

Why Do Greenies Hate Freedom and Support Fascism?

December 16th, 2008

Hubris.

“If only the right people were in charge, implementing the right policies…”

I see a lot of enviro-blogs while browsing around the internet, which seems to have been (sometime in the last two years) painted green. In addition to the Castor and Pollux of environmentalism (Ethanol subsidies and energy independence) many environmentalists also have a solar fetish.

One common theme is that government is the solution to their pet problems. They’re wrong, of course. For example, environmentalists should hate ethanol primarily because it is destroying the environment.

Recently, I came across an article called Farming the Sun at Treehugger.com, the author is optimistic about “sun farms” and writes favorably about a particularly large one in Germany, overseen by Heiner Gärtner, who converted his family’s pig-farm to a solar-powered eyesore several years ago.

…As he sees it, his farm is merely adapting to an economic cycle that happens to favor a different sort of energy.

No, Gärtner is not adapting to an economic cycle that “favors a different sort of energy,” he’s suckling at the teat of government, adapting to a political cycle that subsidizes certain endeavors. This is more appropriately described as “rent-seeking,” the process whereby an individual games the government system to extract profits in excess of those which he would otherwise earn in a free and competitive marketplace.

In 2004, Germany passed a new law that guaranteed people who built solar parks a minimum price for each kilowatt of electricity that was two to three times the market price.

Mr. Gärtner makes more than $600,000 a year from the sale of this electricity, which will allow him to pay off his loans in 15 to 16 years. That is good for him, because the government is phasing out the preferential prices over the next decade. The Mercedes parked in his farmyard attests to his success.

No. Mr. Gärtner essentially steals $600,000 a year from his neighbors. He does this by selling electricity to the German government, which they turn around and sell at a staggering loss to the same taxpayers who had no choice but to finance Heiner’s Mercedes.

This is not a success story for environmentalism, and it should not be championed by those who allege to love the environment. It is legalized plunder, and should be described as nothing short thereof. Every German taxpayer is a victim of the scheisters who seek rents at the State’s enviro-trough.

There’s nothing per se wrong with encouraging more “environmentally friendly” or neutral sources of energy. I’m all for technological advances. But as long as a farmer is guaranteed a certain rate of profit, through a politically controlled infinite arbitrage opportunity financed by taxes, there is no real incentive to get better, there is no incentive to develop a real, profitable energy alternative.

Government is the single greatest threat to the environment, and as I’ve said before in response to environmental questions found elsewhere on the interwebs:

The solution to whatever ails the planet will certainly not come from the fucking cancer that’s strangling it. —Environmental Questions, 9.15.08

no third solution

Blogging about liberty, anarchy, economics and politics