The below table (work in progress) provides a comparison of common tax (force-government-finance) schemes along with some of their strengths and weaknesses.
In many ways, choosing a way to finance a government is like choosing the form of the Destructor from the film, Ghostbusters. See the below excerpt-transcript from the epic film.
Some taxes are said to be regressive and others progressive, where regressive means it impacts those without as much means to pay the tax, and progressive means it impacts those with more ability to pay.
In the below table, the "Preferred by" column is an appeal to authority. Appeal to authority is a logical fallacy. We are pointing this out so that you will think for yourself, but also consider opinions of noteworthy persons.
Let's pick on one. David Nolan, a founder of the Libertarian party, said he preferred the land-value tax as the least bad tax. He wasn't endorsing taxation though, just that LVT was the least bad so long as there was force-financed government, in his opinion, and he also said the topic was open for debate. He also said that opposition on taxes on productivity were one of the 5 pillars of what he considered essential to call oneself a libertarian.
As time proceeds, we may also try to identify methods beyond taxation of financing government as well as methods of creating enclaves of different governance systems within existing governance structures. Sometimes one taxation system works better for one group of people than another. Finally, we are working on a concept called e-governance and government-choice, where the citizens choose their form of governance - perhaps on a contract or similar basis.
| Finance Scheme | Distilled Political Opposition Messages | Distilled Political Support Messages | Pros | Cons | Taxes Productivity? | Notes | Example Entities that Use | Preferred or Supported by |
|---|---|---|---|---|---|---|---|---|
| Personal income tax | No choice | Yes | ||||||
| Corporate income tax | No choice | Yes | ||||||
| Natural resources / Land value tax | "You can never own your land" | Some choice - usage fee.
Lowers housing costs. Mitigates boom-bust cycles. |
No | Thomas Paine, David Nolan, 9 Nobel Prize Winners, Milton Friedman, Adam Smith | ||||
| Property tax (only improvements) | "You can never own your home you built." | Some choice - usage fee.
Sometimes has homestead or elderly exemption. |
Yes | |||||
| Property tax (other assets) | No choice, perhaps easier to hide assets | Yes | ||||||
| Sales/Consumption tax | "Destroys commerce", "Hurts the poor more", "Regressive" | Choice through less consumption, typically includes exemptions for necessities of life | Hamilton, apparently. | |||||
| Estate/Death/Inheritance tax | No choice | Yes | Adam Smith | |||||
| Poll/Head tax | Some choice - usage fee | Yes | ||||||
| Import/Export tax (Tariffs) | Some choice | Yes | ||||||
| Value-Added tax | No choice | Yes | ||||||
| Capital Gains tax | No choice | Yes | ||||||
| Excise tax (fuel, alcohol, etc.) | Some limited choice, you can walk or not imbibe | Yes | ||||||
| Wealth/Net-Worth tax | No choice | Yes | ||||||
| Contract Insurance (untaxed) | Significant choice | No |
Gozer the Gozerian: Gozer the Gozerian, Gozer the Destructor, Volgus Zildrohar, the Traveler has come. Choose and perish.
Ray Stantz: What do you mean, choose? We don't understand.
Gozer the Gozerian: Choose. Choose the form of the Destructor.
Peter Venkman: Oh, I get it! I get it. Oh! Very cute. [to the others] "Whatever we think of." If we think of J. Edgar Hoover, J. Edgar Hoover will appear and destroy us, okay? So empty your heads. Empty your heads. Don't think of anything. We've only got one shot at this.
Gozer the Gozerian: The choice is made.
Peter Venkman: Whoa! Hold on! Whoa!
Gozer the Gozerian: The Traveler has come.
Peter Venkman: Nobody "choosed" anything! [turns to Egon] Did you choose anything?
Egon Spengler: No.
Peter Venkman: [to Winston] Did you?
Winston Zeddemore: My mind is totally blank.
Peter Venkman: I didn't choose anything! [All three slowly turn to confront Ray]
Ray Stantz: I couldn't help it. It just popped in there.
Peter Venkman: [sternly] What? What just popped in there?
Ray Stantz: I-- I-I tried to think--
Egon Spengler: LOOK! [They all look over one side of the roof]
Ray Stantz: No! It can't be!
Peter Venkman: What is it?
Ray Stantz: It can't be!
Peter Venkman: What did you do, Ray?
Winston Zeddemore: Oh, shi*!
[They all see a giant cubic white head topped with a sailor hat]
Ray Stantz: [resigned] It's the Stay Puft Marshmallow Man.
[the Ghostbusters watch the gigantic form of Mr. Stay-Puft stomping towards them]
Peter Venkman: Well, there's something you don't see every day.
Ray Stantz: I tried to think of the most harmless thing. Something I loved from my childhood, something that could never, ever possibly destroy us: Mr. Stay-Puft.
Peter Venkman: Nice thinkin', Ray.
