The Demotivation of Taxation & Self-respect

[Eternal Growth]

Hi FDR, I want to start a conversation about taxation. Specifically, how to respond to it in a way that is self-respecting.

 

I am still a university student, so I am not even much of a taxpayer yet anyway. Yet the amount of effort I put into building human capital while at university will directly effect my productive capacity afterwards, so these concerns are already on my mind. 

 

I am in the United Kingdom, though it is my understanding that rates of taxation are even higher in most of the rest of Europe.

 

I've done some basic calculations with salaries I could expect in the years after I finish university and it seems:

- 35-40% would be taken directly out of my salary (income tax, national insurance, inflated student loans)

- 20% would be taken on almost everything I buy (value added tax)

- At least £1000 would be payable to the local council wherever I live (council tax)

 

Leaving, from these three alone, less than half of my salary remaining. Which isn't even scratching the surface of all of the other taxes, charges, mandatory insurances, tariffs, duties, etc. there are, nor the inflated living costs resulting from state interventions in the economy, nor reductions in my productivity and salary as a result of economic regulations. There is also the money, albeit a comparatively minuscule amount, lost through falling victim to private crime. After factoring all of these in, I don't even want to guess what tiny percentage of my true earning power I would be left with might be.

 

How does a person respond to this situation with self-respect?

 

If I work hard and realise my productive capacity to the extent that the system allows me to, I would have to face the reality that in a year's worth of work, at least 6 (almost certainly more) months were spent working exclusively to fatten the state, with my reward for getting up early in the morning, commuting to work and creating value every day from January to July being £0. Choosing to participate in such an exploitative relationship does not seem self-respecting.

 

If I "go galt", as they say, and withdraw or work below my productive capacity, or even make efforts to go off the grid (though this seems much less possible in Europe than it is in say the States), I wouldn't have as much of my life stolen from me, but I would also be sacrificing my own standard of living, pursuit of happiness, and humanity. Moreover, I would have to face the reality that I allowed the state to cause such a major disruption in how I lived my life. This option is for its own reasons self-destructive and lacks self-respect.

 

So what does one do?

 

I recognise the option of emigration, though nowhere in particular is standing out as a libertarian paradise.

 

I recognise the option of focusing more on the aspects of my life that aren't taxable (relationships, hobbies, etc.) than those which are. While this seems like the most FDR response to the problem, especially with regards to personal relationships, it doesn't get rid of the reality of needing to work for some standard of living. 

 

I recognise the option of, being unable to beat the parasites, becoming one by entering one of the circles where government money comes flowing in. Though I would hate myself every day if I took this option, so I don't see it as being on the table. 

 

[Alice Amell]

It is quite depressing the amount that is stolen from people. However, I think you can still respect yourself for being able to work and maintain a job and earn a living and perhaps even more so in this terrible environment because it is that much harder. It is an exploitative relationship, as you said, but because the gun is pointed at you, you aren't responsible for what the state uses the money for. I don't know if that was a concern of yours at all, but you aren't supporting the state in any way by working. I also doubt the state will go away much faster if you go galt. It is up to you of course how much time you want to spend on work and how much on other pursuits. 

 

On becoming a parasite, so to speak, I'm not entirely sure. I know Stef said about state-sponsored college scholarships, he would absolutely take every one he could. It isn't truly parasitical, because the state has taken so much more from us than he would be taking back from it. It has taken our childhoods through state education and promises to steal from us our entire lives and then to steal from our children as well. He isn't stealing from others by accepting money from the state, but gaining restitution. However, if you live your entire life off the money of the state, that's a bit different. I can't say if it's necessarily wrong, given that the state has a gun pointed at everyone and controls the environment to such a degree that free trade is very limited. In the current situation, our moral capacities are reduced. We all benefit from the state, whether through roads or subsidized meat, but that doesn't mean we support it. We don't really have a choice. So in my opinion living off state money isn't really ideal, but I wouldn't condemn it as evil necessarily either.

 

These are just some thoughts I had. I don't know what to do, to be honest, other than to make the best out of a shitty situation and try to spread rationality and nonviolence to hopefully get rid of this situation in the future. I think you should respect yourself for realizing the immorality of the state. Most people haven't come that far. For even being able to ask this question, you've shown a lot of intelligence and virtue. 

[Ace]

I don't know how generous welfare is in the UK - but I guarantee you that working hard and having the government take a huge chunk of your income will provide you a more satisfying existence than sitting at home and getting $800 a month or whatever it is.

 

I think that those of us living in the developed world should be thankful that we're still able to enjoy a very good standard of living even though all in probably 40% of what we're paid is taxed. 

 

You have to be realistic.  We still need to swim in the waters in which all the laws and rules apply to get by in life.  If you decided that paying taxes is immoral and you're going to stick to that and end up in jail for tax evasion, would you be contributing to advancing freedom in the end?  Having customs officers go through your luggage prepared to fine you over something you bought on vacation that isn't allowed is silly and wrong, but you're way better off just smiling and going along with them to get it over with than asserting your position.  Because that is a situation where you do not have any control, if you don't comply they'll use force to get you to.

 

Like you said, it's better to focus on personal things.  Moving to some other country where you only pay 30% tax instead of 40% isn't going to change anything.  Having more material wealth is nice, but once you're making enough to be comfortable and not having to budget every penny to get by - it's totally secondary to finding happiness.

[Eternal Growth]

Thank you for your thoughtful responses.

 

I certainly agree that it is better to be in the habit of productivity than to be in the habit of parasitism even if productivity is being highly taxed. Not only because it's a more satisfying existence and one will be respected by quality people, but because it provides options and opportunities for the future. 

 

Anyway, "parasitism" in the current system is a very wide spectrum of things. There are those on welfare, but it usually isn't much and few respect it as a lifestyle (except in the case of pensioners, who are the biggest beneficiaries of government spending in the UK yet it is considered not only respectable, but not enough - something about them being a big voting bloc). The big parasites are the politicians, civil servants and other public sector employees. Other parasites are those in the private sector making more than they otherwise would as a result of a government program (which could be licensing restricting competition, other regulation favouring established players, subsidies, government contracts, entire industries that live on state distortions of the economy such as the UK financial sector, etc.)

 

Moving to another part on the world at some point is in my plans, though more for the cultural aspect than the lower taxes (which there would still be in each country I'm considering). British culture is collectivist, stifling and has an awful stench of post-empire decay - I'd love to get out of here.