Sunday, May 20, 2012

Taxation Is THEFT

Taxation is theft.

There is no denying this. If I and a few brutes appeared at the door of an unsuspecting individual and demanded monetary compensation less we drag him off to jail, this would be a clear cut case of robbery. It is a common tactic used by mobs or street gangs to offer protection with the barrel of a gun. The only difference between shakedowns by private thugs and those employed by the state is the badge. The badge legalizes extortion and imprisonment.

With that being said, it has been three years since the financial crisis and governments around the world are still reeling in the lesser Depression. Tax collections are down while public expenditures have skyrocketed in a vain effort to stabilize the economy. Much of this mass orgy in spending has been financed by central banks printing money and the suppression of interest rates down to artificially low levels. This is the Keynesian remedy to recession. Spend what you don’t have via the printing press. Have central bankers create paradise on Earth through counterfeiting.

So far it hasn’t worked.

Like the Great Depression before, regime uncertainty and an emphasis on consumption over private investment have prevented a sustainable recovery from taking hold. Public debts continue their upward trend with no conceivable end in sight. The bond vigilantes have started their attack on the Eurozone; namely Greece, Portugal, Italy, and Spain. Greece is all but finished as even the most dimwitted of commentators is conceding than an exit from the euro is likely. Meanwhile in Italy, the lack of tax collection has forced the hand of Prime Minister Mario Monti to crack down on tax evasion. This hasn’t gone over well with the Italian public. From the San Francisco Chronicle:

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