| I recently heard Peter Sloterdijk, a well known German philosopher, argue in favour of a voluntary tax.
His argument was that the psyche of people would change regarding the concept of taxation. He acknowledged that at first people would think nobody would pay tax - Most people would think they would still pay tax, but not their neighbour. He would skip his duty and mooch off the good folks like themselves. But, he said, when people stop seeing it as a duty, but as a privilege to pay taxes, then their pride would take over from thrift. A donation to tax would play into their sense of generosity. And what's more: because you consciously pledge an amount, you are more likely to keep an eye on where that money is going. And that means politically engaged citizens. He did not like the current system, where we assume nobody will pay taxes, and so we treat people like dumb animals who have to be compelled by brute force to pay a fee to the commons. He calls this "a 'fiscal kleptocracy' that had transformed the country into a 'swamp of resentment'" [from wiki].
This argument is familiar, I think, but only in America. This is a European philosopher, however, coming from, and commenting on the Welfare State. But I think it leads to America. Which is not such a pretty place.
I think the problem in his argument can easily be understood if we think about extremely rich folk. They can buy anything they need. Why would they pay to an institute that doesn't help them? Sheer generosity? Well, generosity only works on causes that you believe in. And if you believe, like many of these people do, that you earned your riches by being extra clever or hard working, then how can you empathise with those who do not have wealth, and see them as a worthy cause to donate to? Obviously, they are not working or clever! Also, the mechanism of compulsory taxation ensures less resentment probably. If the tax regime is strictly enforced, you know that you will not be the only one paying taxes in the neighbourhood. Everybody is paying their fair share.
I don't believe voluntary taxation will work.
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