You can basically only take income tax by threatening people. “Give me 40% of your earnings or I put you in prison.” It is the nicest type of threatening! Stable governments have a stellar reputation for only doing it once per year and otherwise not escalating the extortion. You gain benefit from the stable civilization supported by such stable governments because they use your taxes to pay for it. But there’s no reason for the government to put you in prison except for the fact that they expect you to give them money not to. By participating, you are showing that you will respond to threats, which is an incentive to extract more wealth from you. If enough people understood decision theory and were dissatisfied by the uses the government put their money to, they could refuse to pay and the prison system wouldn’t be big enough to deal with it. Oops, it’s time to overthrow the government.
Under a better land value tax, the consequence for not paying your taxes is that the government takes the land away and gives it to someone else. They aren’t threatening you, they’re just reassigning their commitment to protect the interests of the person who uses the land over to a user who will pay them for the service. Of course, people can still all refuse to do it if they don’t like the uses to which government puts their money, and from the point of view of the person paying taxes, it’s still pretty much a case of “pay up or something bad will happen to you,” so some would argue that the difference is mostly academic. That said, I really prefer to have a government which does not have “devise ways to make people miserable for the purpose of making them miserable” (you know, prison as a threat) as a load-bearing element of its mechanisms of perpetuating itself.
A decision-theoretic case for a land value tax.
You can basically only take income tax by threatening people. “Give me 40% of your earnings or I put you in prison.” It is the nicest type of threatening! Stable governments have a stellar reputation for only doing it once per year and otherwise not escalating the extortion. You gain benefit from the stable civilization supported by such stable governments because they use your taxes to pay for it. But there’s no reason for the government to put you in prison except for the fact that they expect you to give them money not to. By participating, you are showing that you will respond to threats, which is an incentive to extract more wealth from you. If enough people understood decision theory and were dissatisfied by the uses the government put their money to, they could refuse to pay and the prison system wouldn’t be big enough to deal with it. Oops, it’s time to overthrow the government.
Under a better land value tax, the consequence for not paying your taxes is that the government takes the land away and gives it to someone else. They aren’t threatening you, they’re just reassigning their commitment to protect the interests of the person who uses the land over to a user who will pay them for the service. Of course, people can still all refuse to do it if they don’t like the uses to which government puts their money, and from the point of view of the person paying taxes, it’s still pretty much a case of “pay up or something bad will happen to you,” so some would argue that the difference is mostly academic. That said, I really prefer to have a government which does not have “devise ways to make people miserable for the purpose of making them miserable” (you know, prison as a threat) as a load-bearing element of its mechanisms of perpetuating itself.
This argument flagrantly stolen from planecrash: https://www.projectlawful.com/replies/1721794#reply-1721794 Of course planecrash also offers an argument for what gives a hypothetical government the right to claim ownership for the land: https://www.projectlawful.com/replies/1773744#reply-1773744 I was inspired to write this by Richard Ngo’s definition of unconditional love at https://x.com/richardmcngo/status/1872107000479568321 and the context of that post.