Freedom Unfiltered
  • Blog
  • About
  • Newsletter
    • Preview and Signup
    • Newsletter Archives
  • Podcast
  • Liberty Library
  • Freedom Links
    • Freedom Blogs
    • Liberty Organizations
    • News Sites
    • News Feed
    • Networking and Activism
    • Audio and Video
    • Atlanta Liberty Calendar
  • Contact

Hoppe on the Economics of Taxation

4/15/2013

1 Comment

 
In The Economics and Ethics of Private Property, Hans-Hermann Hoppe explains that taxes "...invariably reduce production, the consumers standard of living, obstructs wealth formation, and creates relative impoverishment."  Let's think about why that is the case.
"Taxation is a coercive, non-contractual transfer of definite physical assets (nowadays mostly, but not exclusively money), and the value embodied in them, from a person or group of persons who first held these assets and who could have derived an income from further holding them, to another, who now possesses them and no derives an income from so doing.”  - p 35
Think about the ways in which a person can acquire a valuable good? Hoppe explains there are four and only four ways:
1.Original Appropriation Through Homesteading
2.Production (mix of one's labor and previously appropriated goods)
3.Voluntary Exchange
4.Forcefully Expropriation / Theft

Option 4, of which taxation is a part, decreases the marginal utility of activities 1-3 and increases the marginal utility of consumption and leisure:
“Taxation raises the time preference...in the direction of an existence of living hand to mouth. Just increase taxation enough and you will have mankind reduced to the level of barbaric animal beasts.” p 36
“Contrary to any claim of a systematically “neutral” effect of taxation on production, the consequence of any such shortening of roundabout methods of production is a lower output produced. The price that invariably must be paid for taxation, and for every increase in taxation, is a coercively lowered productivity that in turn reduces the standard of living in terms of valuable assets provided for future consumption. Every act of taxation necessarily exerts a push away from more highly capitalized, more productive processes in the direction of a hand-to-mouth-existence.” p 42

Picture
1 Comment
essays writings link
9/7/2015 09:04:29 pm

In this article, Hoppe was able to give us the most appropriate idea of Tax and where does it go after. It's factual that any taxation act exerts a push away from more highly capitalized, more productive processes in the direction of a hand-to-mouth existence. I just hope that people will have a deeper and more profound knowledge about taxation so that they will k=also know their rights.

Reply



Leave a Reply.

    Our Mission

    To champion sound economics and individual liberty with an uncompromising respect for human rights. Privatize everything!

    Newsletter Signup

    Archives

    September 2013
    August 2013
    April 2013
    March 2013
    February 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012

    Categories

    All
    Economics
    Ethics And Morality
    Freed Markets
    Friends Of Liberty
    Government
    History
    Individual Liberty
    Politics
    Quotes
    Recommended Resources
    Strategies For Liberty
    Video
    Website Announcements

    Subscribe in a reader
     
     
    Freedom Unfiltered

    Promote Your Page Too
      
    Picture
        
      
     
    Get the Newsletter!
Home
About
Contact

Newsletter:

  • Archives
  • Signup
Blog
Podcasts


Liberty Library:
  • Austrian Economics
  • Capitalism
  • Drug War
  • Economic Concepts
  • Federal Reserve
  • Financial Crisis
  • Gold Standard
  • Great Depression

  • Intellectual Property
  • Legal Order
  • Libertarianism
  • Market Solutions
  • Money and Banking
  • Politics
  • Taxation
  • War
Links to Other Resources:
  • Freedom Blogs
  • Liberty Orgs
  • News and Commentary
  • Networking and Activism
  • Audio and Video
Copyright © 2012 Creative Commons, Attribution, Freedom Unfiltered