The Libertarian objection to the income tax as slavery is well-established. The master (government) decides how much of our skill, intellect and labor we are allowed to keep. The fact is indisputable.
The theft of personal information from the Department of Revenue was only possible because it collects our information and that of our children to extract our skill, intellect and labor through the income tax. That too is indisputable.
If the state used a consumption tax, the hackers would not have stolen nearly as much personal information. The thieves would have stolen primarily from businesses. That would be bad enough, but still not as bad as this.
The irony of course is the state offering us and our children a lifetime of credit protection for which we, as taxpayers, will pay. But what of the next generation, our grandchildren? How can we prevent this for them?
The practical answer is to move to a consumption based system. The state then enforces property rights and contracts, sets weights and measures and is paid for its service.
A consumption tax is not perfect. Still, it provides all of us more freedom of choice than the income tax and it restores a more proper relationship between the people and the government. People decide whether to purchase or not, how much, and whether to repair, recycle or reuse. It has the added benefit of making it more difficult for thieves to steal from so many of us at once.
Victor Kocher, Chairman of the SCLP, said, “This disaster may ultimately prove to be a teachable moment if we learn the big lesson from our mistakes and realize that every little bit of freedom pays very real dividends.”