Re: Walter’s post on taking government money or not. Another argument occurs to me. Start with the premise that the government pays out money to create support for itself. It buys “legitimacy”. In this way of thinking, it keeps raising taxes as long as the marginal gain from buying support exceeds the marginal loss of support from the taxed people. As long as what government gains from swaying people to its side with money favors exceeds the loss in support from added taxes, the government will raise taxes. Equilibrium means no tax change and no change in support. A cut … Continue reading Libertarians, Take the Government Money and Run