The following list provides a listing of common tax policies 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 longs there was force financed government, in his opinion, and he also said the topic was open for debate.
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.
| Tax Scheme | Political Opposition Message | Pros | Cons | Notes | Entities that Use | Preferred by |
|---|---|---|---|---|---|---|
| Personal income tax | No choice | |||||
| Corporate income tax | No choice | |||||
| Natural resources / Land value tax | "You can never own your land" | Some choice - usage fee beyond a threshold which is necessary for life | Thomas Paine, David Nolan, 9 Nobel Prize Winners, Milton Friedman, Adam Smith | |||
| Property tax (land + improvements) | Some choice - usage fee - can live in a smaller house, sometimes has homestead exemption | |||||
| Property tax (other assets) | No choice, perhaps easier to hide assets | |||||
| Sales tax | Choice though less consumption, typically includes exemptions for necessities of life | Hamilton, apparently. | ||||
| Estate/Death/Inheritance tax | No choice | Adam Smith | ||||
| Poll/Head tax | Some choice - usage fee | |||||
| Import/Export tax (Tariffs) | Some choice | |||||
| Value-Added tax | No choice | |||||
| Capital Gains tax | No choice | |||||
| Excise tax (fuel, alcohol, etc.) | Some limited choice, you can walk or not imbibe | |||||
| Wealth/Net-Worth tax | No choice |
Choosing a method of financing government can play out a bit like the "Choose the form of the Destructor" scene from the epic film, Ghostbusters. The transcript of the relevant section of the film is below.
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.
