Up
here in Buffalo, they are complaining about yet another waste
of taxpayer's money. The state wants to spend eleven million dollars
to paint the Skyway Bridge, which runs south from downtown along
Lake Erie. Many people around here would prefer demolishing the
bridge to painting it since it serves as a Berlin Wall separating
the city from the lake. Naturally, the proposed contractor thinks
a paint job is just what the old bridge needs. We can make a much
larger point by means of Rothbardian and Public Choice analytical
tools.
Those
who, like Senator Proxmire (Golden Fleece Award), or Tom Brokaw
(Fleecing of America), complain and protest about how this or
that quantum of tax money is wasted on this or that particular
boondoggle, have missed the point entirely. From the point of
view of the taxpayers, all money that the taxman has taken
from their pockets by force is wasted! The mere fact that the
money needs to be taxed in the first place, proves beyond any
reasonable doubt that, if not taxed, the taxpayer would spend
the money on goods and services he deems more valuable than those
projects the government intends to fund. Even if, as is astronomically
unlikely, all taxpayers planned to spend their money on the exact
same thing that the government planned to spend it on (and there
is no way to know this in reality), we can still call the tax
money wasted. There are two reasons for this. First, because the
taxpayer is deprived of the satisfaction and dignity of making
his own choice. For example, imagine you were thinking of marrying
Jane Doe. Then, the government came along and forced you at gun
point to marry her. It would not be quite the same experience,
I suppose. Second, if the taxpayer was allowed to make his own
choice, the funds could be transferred for a tiny fraction of
the cost and inconvenience and without the need for thousands
of tax collectors spending billions of dollars.
Conversely,
no matter how absurd or silly or wasteful the projects that tax
money is spent for might seem, from the point of view of the recipients
of that tax largesse, none of it is wasted. To the fellow
who sold that toilet seat for $1,000 to the Pentagon, that money
wasn’t wasted. To the fellow who used tax money to create a work
of "art" featuring a religious icon dipped in bodily
fluid, that grant was not wasted. Thus, tax money is always
wasted from the point of view of taxpayers but is never
wasted from the point of view of tax recipients.
Now
add the political dynamic. The beneficiaries of any government
program generally derive all or much of their income from that
program and will fight to the death to keep it. In contrast, the
typical taxpayer pays only a tiny fraction of his income in taxes
to pay for any particular program. Thus, while tax recipients
will struggle mightily to keep their programs up and running,
taxpayers will be rationally apathetic and will choose not to
fight them because so little is at stake and they are unlikely
to succeed in any event. Thus, it is the tax recipients, who generally
derive most or all of their income from taxes, who tend to dominate
politics.
Oliver
Wendell Holmes, who usually got things balled up, famously said,
"Taxes are the price we pay for civilization." This,
from a man who took part in one of the most brutal episodes in
American history, the tax-supported War of Northern Aggression.
The essence of civilization is the abolition of the use of aggressive
force in human affairs and the consequential emergence of reason
as our guide. Taxation is the greatest facilitator of aggressive
force ever invented. The major wars and genocides in the tax-happy
20th century were paid for by taxation. Which is why
I say, "Barbarism is the price we pay for taxation."