Why Tax?

Taxation system is accepted almost universally without a question. It is one of the main pillars that supports governments.  Here are excerpts from a blog – Rational Libertarian Corner – that reveals the omnipresence of tax in our life and labels it as “permission to live”.

I do not agree with all that is in these excerpts or the blog but present them to share the view of  taxation from the standpoint of right to life and liberty.


A tax is not a voluntary payment, nor is it donation, it is an enforced contribution which every citizen of a society is expected to make and if he denies, he will be punished…. We pay taxes because we fear government. Our taxes become the source of wealth for the government which it wastes through promoting mostly irrational and inappropriate public programs in such an irresponsible fashion that we come to hear news of various new scams and frauds every new day.


Taxes are of two types, Direct Taxes and Indirect Taxes.

Indirect Taxes*

Indirect taxes are those which we pay for buying and using goods and services before we can use them. Indirect taxes can be explained as the cost of permission-to-live. You cannot buy even a single commodity or service without paying taxes or the price for the permission to buy and use that product or service. You are not free to buy anything and if you want to buy, you will have to pay the price not only for that product, but also for the permission to buy it. You will have to pay a price for the government to buy any commodity including vegetables, salt, wheat, sugar; milk, tea etc. or you are simply not authorized to buy anything. Without these essential commodities of daily use, a person just cannot survive and hence he is forced to pay taxes. Hence, you are required to pay a price for attaining permission-to-live. Either you will pay indirect taxes or you will die. Every Indian, however poor or rich, pays these indirect taxes whenever they buy a commodity or thing, or uses any service provided by public or private sector.

We do not feel bad about paying these indirect taxes because we really do not realize how much we pay taxes while buying a commodity. The difference between the price you pay for buying commodities and services necessary for your life and the actual amount you pay for the government to get the permission to buy… for your life is huge. According to The Hindu Business Line, a handmade soap which one may get of Rs 3/- or Rs 4/- in market, costs merely Rs 0.80/- per piece, the producers takes Rs 0.20/- profit on each piece, so total price is Rs 1/- per piece of a soap cake, but production levies, excise duty levies, sales tax, and then buying tax makes it Rs 4/- per piece.


Thus, irrespective of the Constitution which confirms the right to live, there is no fundamental right to live in any state and if you want to live, you will have to pay, or buy your living. The government takes the taxes and allows you to live.


Direct Taxes:

As mentioned earlier, we are not free and we have to pay price for living. We are forced to pay price for every breath we take yet we are told that we are free. Even after paying all those indirect taxes which causes price rise, if a person succeeds in saving a little of his honest and hard earned money, the government forces direct taxes on his earning and property. So, you will have to pay house tax if you own a house. You are not free to buy or own any property and if you want to have property you will have to pay price (property taxes) to take permission from government to have that property.

Income tax is also a direct tax. Income tax is the price of permission to earn a living. Nobody is free, if you want to live, you will have to pay your master as a dutiful slave. You cannot live without earning and if you want to live, pay income tax. Nothing is free, there is no right to life, no right to earn and do work, no right to learn. If you are an entrepreneur, you will have to pay Corporate tax before starting a business. If you want to do your own work, you will have to pay Self-Employment tax.


“People often say death and taxes are the same, but this is wrong. Death is a taxable event, but taxes never die.”  Anonymous.

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* Subtitle added by me

Full article at http://rationallibertariancorner.com/anarcho-capitalism/why-not-to-pay-taxes.html


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