Is Taxation Theft?

"Taxation is theft" is one of those catchy one-liners used by anarcho-capitalists and certain non-anarchic libertarians.  The argument is based on the axiom of nonaggression, which deontological libertarians tend to take to the extreme.  The argument goes something like this:

"Theft is the coercive taking of one's property without one's consent.  Taxation is the government taking your property [in the form of taxes] without one's consent.  Therefore, taxation is theft."

A lot of Americans are angry at the rate at which citizens are taxed.  The form of the tax also helps with the feeling of theft.  A tax, like the income tax, directly affects what you make.  Especially in our current progressive taxation set-up, it essentially punishes people for working better jobs.  An indirect tax (e.g., sales tax, value-added tax) would do a much better job.  After all, no one is forcing you to consume.

Even if you like to still say "taxation is theft," your argument misses one key element: legitimacy.  Locke stated that a government is not legitimate unless it has the consent of the governed.  That consent was established during the founding of this nation, and still exists.  We have to remember that the revolutionaries in this countries threw tea into Boston Harbor because of "taxation without representation," not straight-up taxation.  If you need more about the concept of social contract, read some John Locke, and you'll get the idea.

In Conscience of a Conservative, Barry Goldwater said that government should be able to do what it needs to do, not what it can do.  I believe that many Americans have a similar sentiment.  Government should enforce natural rights, not guarantee them.  Government should have enough power to enforce contract rights for all.  If you are to argue that national defense is a public good, then you should collect revenue for the military.  Ditto for a police force!

Think of taxation as an enforced contract fee rather than as an act identical to theft.  If not, I'm sure things would be much more enjoyable for you in Mogadishu.