The John Locke Foundation ( JLF ) is a free market think tank based in North Carolina . The organization was founded in 1990 to work "for truth, for freedom, and for the future of North Carolina." It is named after the philosopher John Locke , who was a primary contributor to classical liberalism . JLF was co-founded by Art Pope , a North Carolina businessman active in politics. Pope's family foundation provides most of the support for the center.
132-402: JLF advocates lowering taxes , and encouraging free markets . The organization's stated mission is to "employ research, journalism, and outreach programs to transform government through competition, innovation, personal freedom, and personal responsibility. JLF seeks a better balance between the public sector and private institutions of family, faith, community, and enterprise." The organization
264-586: A contradiction in terms , although anarcho-capitalists and some right-libertarians consider anarcho-capitalism to be a form of anarchism. According to the Encyclopædia Britannica : Anarcho-capitalism challenges other forms of anarchism by supporting private property and private institutions with significant economic power. Anarcho-capitalism is occasionally seen as part of the New Right . Author J Michael Oliver says that during
396-431: A flat percentage rate of taxation on personal annual income, but most scale taxes are progressive based on brackets of yearly income amounts. Most countries charge a tax on an individual's income and corporate income . Countries or sub-units often also impose wealth taxes , inheritance taxes , gift taxes , property taxes , sales taxes , use taxes , environmental taxes , payroll taxes , duties , or tariffs . It
528-404: A free-market society. This system establishes the right of every man to his own person, the right of donation, of bequest (and, concomitantly, the right to receive the bequest or inheritance), and the right of contractual exchange of property titles. Rothbard's defense of the self-ownership principle stems from what he believed to be his falsification of all other alternatives, namely that either
660-433: A pay-as-you-earn basis, with corrections made after the end of the tax year . These corrections take one of two forms: Income-tax systems often make deductions available that reduce the total tax liability by reducing total taxable income. They may allow losses from one type of income to count against another – for example, a loss on the stock market may be deducted against taxes paid on wages. Other tax systems may isolate
792-463: A state . Rothbard views the power of the state as unjustified, arguing that it restricts individual rights and prosperity, and creates social and economic problems. Anarcho-capitalists and right-libertarians cite several historical precedents of what they believe to be examples of quasi-anarcho-capitalism, including the Republic of Cospaia , Acadia , Anglo-Saxon England , Medieval Iceland ,
924-458: A "centralized ideology" and a "paired enforcement mechanism" which they believe would be necessary under what they describe as a "coercively" egalitarian-anarchist system. Rothbard also argued that the capitalist system of today is not properly anarchistic because it often colludes with the state. According to Rothbard, "what Marx and later writers have done is to lump together two extremely different and even contradictory concepts and actions under
1056-444: A "collusive partnership" between business and government that "uses coercion to subvert the free market". Rothbard argued that all government services, including defense, are inefficient because they lack a market-based pricing mechanism regulated by "the voluntary decisions of consumers purchasing services that fulfill their highest-priority needs" and by investors seeking the most profitable enterprises to invest in. Rothbard used
1188-558: A "contractual society" which Rothbard described as "a society based purely on voluntary action, entirely unhampered by violence or threats of violence" The system relies on contracts between individuals as the legal framework which would be enforced by private police and security forces as well as private arbitrations. Rothbard argues that limited liability for corporations could also exist through contract, arguing that "[c]orporations are not at all monopolistic privileges; they are free associations of individuals pooling their capital. On
1320-426: A certain area ( social engineering ). For example, a high excise is used to discourage alcohol consumption, relative to other goods. This may be combined with hypothecation if the proceeds are then used to pay for the costs of treating illness caused by alcohol use disorder . Similar taxes may exist on tobacco , pornography , marijuana etc., and they may be collectively referred to as " sin taxes ". A carbon tax
1452-446: A commodity is sold to its final consumer. Retail organizations contend that such taxes discourage retail sales. The question of whether they are generally progressive or regressive is a subject of much current debate. People with higher incomes spend a lower proportion of them, so a flat-rate sales tax will tend to be regressive. It is therefore common to exempt food, utilities, and other necessities from sales taxes, since poor people spend
SECTION 10
#17327723020601584-469: A consensual contract. Some anarcho-capitalists prefer to see self-employment prevail over wage labor. David D. Friedman has expressed a preference for a society where "almost everyone is self-employed" and "instead of corporations there are large groups of entrepreneurs related by trade, not authority. Each sells not his time, but what his time produces". Different anarcho-capitalists propose different forms of anarcho-capitalism and one area of disagreement
1716-469: A definition and system of classification of internal taxes, generally followed below. In addition, many countries impose taxes ( tariffs ) on the import of goods. Many jurisdictions tax the income of individuals and of business entities , including corporations . Generally, the authorities impose a tax on net profits from a business , on net gains, and on other income. Computation of income subject to tax may be determined under accounting principles used in
1848-422: A group of people can own another group of people, or that no single person has full ownership over one's self. Rothbard dismisses these two cases on the basis that they cannot result in a universal ethic , i.e. a just natural law that can govern all people, independent of place and time. The only alternative that remains to Rothbard is self-ownership which he believes is both axiomatic and universal. In general,
1980-481: A high degree of convergence amongst individuals about what constitutes natural justice. Unlike both the Tannehills and Rothbard who see an ideological commonality of ethics and morality as a requirement, David D. Friedman proposes that "the systems of law will be produced for profit on the open market, just as books and bras are produced today. There could be competition among different brands of law, just as there
2112-406: A higher proportion of their incomes on these commodities, so such exemptions make the tax more progressive. This is the classic "You pay for what you spend" tax, as only those who spend money on non-exempt (i.e. luxury) items pay the tax. A small number of U.S. states rely entirely on sales taxes for state revenue, as those states do not levy a state income tax. Such states tend to have a moderate to
2244-641: A higher tax rate. Historically, in many countries, a contract needs to have a stamp affixed to make it valid. The charge for the stamp is either a fixed amount or a percentage of the value of the transaction. In most countries, the stamp has been abolished but stamp duty remains. Stamp duty is levied in the UK on the purchase of shares and securities, the issue of bearer instruments, and certain partnership transactions. Its modern derivatives, stamp duty reserve tax and stamp duty land tax , are respectively charged on transactions involving securities and land. Stamp duty has
2376-478: A homesteading claim based on disuse, acquire title by the assent of the community consensus, form a corporation with other involved parties, or other means. American economist Randall G. Holcombe sees challenges stemming from the idea of common property under anarcho-capitalism, such as whether an individual might claim fishing rights in the area of a major shipping lane and thereby forbid passage through it. In contrast, Hoppe's work on anarcho-capitalist theory
2508-497: A large amount of tourism or inter-state travel that occurs within their borders, allowing the state to benefit from taxes from people the state would otherwise not tax. In this way, the state is able to reduce the tax burden on its citizens. The U.S. states that do not levy a state income tax are Alaska, Tennessee, Florida, Nevada, South Dakota, Texas, Washington state, and Wyoming. Additionally, New Hampshire and Tennessee levy state income taxes only on dividends and interest income. Of
2640-514: A man could first check his record, provided they trust the veracity of the companies' records. They further theorise that the bank robber would find insurance companies listing him as a very poor risk and other firms would be reluctant to enter into contracts with him. Murray Rothbard has listed different ideologies of which his interpretations, he said, have influenced anarcho-capitalism. This includes his interpretation of anarchism, and more precisely individualist anarchism; classical liberalism and
2772-612: A market and fulfill the roles of courts and the police. Some anarcho-capitalist authors have argued that voluntary slavery is compatible with anarcho-capitalist ideals. According to its proponents, various historical theorists have espoused philosophies similar to anarcho-capitalism. While the earliest extant attestation of "anarchocapitalism" [ sic ] is in Karl Hess 's essay "The Death of Politics" published by Playboy in March 1969, American economist Murray Rothbard
SECTION 20
#17327723020602904-408: A mutually agreed-upon "legal code which would be generally accepted, and which the courts would pledge themselves to follow". This legal code would recognize contracts between individuals, private property, self-ownership and tort law in keeping with the non-aggression principle. Anyone who disagreed with the legal code would ultimately be subject to enforcement measures such as those utilised by
3036-553: A particular amount. Such upper or lower limits may apply for retirement but not for health-care components of the tax. Some have argued that such taxes on wages are a form of "forced savings" and not really a tax, while others point to redistribution through such systems between generations (from newer cohorts to older cohorts) and across income levels (from higher income levels to lower income-levels) which suggests that such programs are really taxed and spending programs. Unemployment and similar taxes are often imposed on employers based on
3168-474: A person from permanently selling himself or herself into unindentured slavery . That restriction aside, the right to contract under anarcho-capitalist order would be pretty broad. For example, Rothbard went as far as to justify stork markets, arguing that a market in guardianship rights would facilitate the transfer of guardianship from abusive or neglectful parents to those more interested or suited to raising children. Other anarcho-capitalists have also suggested
3300-476: A political ideology such as "redistribution of private property", which he attributed to anarchism. According to this argument, the capitalist free market is "the natural situation" that would result from people being free from state authority and entails the establishment of all voluntary associations in society such as cooperatives, non-profit organizations, businesses and so on. Moreover, anarcho-capitalists, as well as classical liberal minarchists , argue that
3432-800: A regime of liberty, the natural organization of the security industry would not be different from that of other industries". Proponents believe that private systems of justice and defense already exist, naturally forming where the market is allowed to "compensate for the failure of the state", namely private arbitration, security guards, neighborhood watch groups and so on. These private courts and police are sometimes referred to generically as private defense agencies . The defense of those unable to pay for such protection might be financed by charitable organizations relying on voluntary donation rather than by state institutions relying on taxation, or by cooperative self-help by groups of individuals. Edward Stringham argues that private adjudication of disputes could enable
3564-625: A result of market forces . Certain countries (usually small in size or population, which results in a smaller infrastructure and social expenditure) function as tax havens by imposing minimal taxes on the personal income of individuals and corporate income. These tax havens attract capital from abroad (particularly from larger economies) while resulting in loss of tax revenues within other non-haven countries (through base erosion and profit shifting ). Legal and economic definitions of taxes differ, such that many transfers to governments are not considered taxes by economists. For example, some transfers to
3696-469: A similar example, saying that a bank robber who had an attack of conscience and returned the money would still owe reparations for endangering the employees' and customers' lives and safety, in addition to the costs of the defense agency answering the teller's call for help. However, they believe that the robber's loss of reputation would be even more damaging. They suggest that specialized companies would list aggressors so that anyone wishing to do business with
3828-524: A single-rate form of taxation regardless of ability to pay (the Community Charge , but more popularly referred to as the Poll Tax), led to widespread refusal to pay and to incidents of civil unrest, known colloquially as the ' Poll Tax Riots '. Some types of taxes have been proposed but not actually adopted in any major jurisdiction. These include: An ad valorem tax is one where the tax base
3960-525: A specific moral theory based on the non-aggression principle . While the Friedmanian formulation of anarcho-capitalism is robust to the presence of violence and in fact, assumes some degree of violence will occur, anarcho-capitalism as formulated by Rothbard and others holds strongly to the central libertarian nonaggression axiom , sometimes non-aggression principle. Rothbard wrote: The basic axiom of libertarian political theory holds that every man
4092-437: A tax on net worth (assets minus liabilities), as a percentage of the net worth, or a percentage of the net worth exceeding a certain level. The tax may be levied on " natural " or " legal persons. " A value-added tax (VAT), also known as Goods and Services Tax (GST), Single Business Tax, or Turnover Tax in some countries, applies the equivalent of a sales tax to every operation that creates value. To give an example, sheet steel
John Locke Foundation - Misplaced Pages Continue
4224-493: Is a per unit tax, where the tax base is the quantity of something, regardless of its price. An excise tax is an example. Consumption tax refers to any tax on non-investment spending and can be implemented by means of a sales tax, consumer value-added tax, or by modifying an income tax to allow for unlimited deductions for investment or savings. This includes natural resources consumption tax , greenhouse gas tax (i.e. carbon tax ), "sulfuric tax", and others. The stated purpose
4356-415: Is a common theme in some anarcho-capitalist writings. As anarcho-capitalism puts laissez-faire economics before economic equality, it is commonly viewed as incompatible with the anti-capitalist and egalitarian tradition of anarchism. Although anarcho-capitalist theory implies the abolition of the state in favour of a fully laissez-faire economy, it lies outside the tradition of anarchism. While using
4488-430: Is a distinction between an estate tax and an inheritance tax: the former taxes the personal representatives of the deceased, while the latter taxes the beneficiaries of the estate. However, this distinction does not apply in other jurisdictions; for example, if using this terminology UK inheritance tax would be an estate tax. An expatriation tax is a tax on individuals who renounce their citizenship or residence. The tax
4620-601: Is a full VAT. The province of Quebec collects the Quebec Sales Tax [QST] which is based on the GST with certain differences. Most businesses can claim back the GST, HST, and QST they pay, and so effectively it is the final consumer who pays the tax. An excise duty is an indirect tax imposed upon goods during the process of their manufacture, production or distribution, and is usually proportionate to their quantity or value. Excise duties were first introduced into England in
4752-442: Is a general tax levied periodically on residents who own personal property (personalty) within the jurisdiction. Vehicle and boat registration fees are subsets of this kind of tax. The tax is often designed with blanket coverage and large exceptions for things like food and clothing. Household goods are often exempt when kept or used within the household. Any otherwise non-exempt object can lose its exemption if regularly kept outside
4884-425: Is a self-owner, having absolute jurisdiction over his own body. In effect, this means that no one else may justly invade, or aggress against, another's person. It follows then that each person justly owns whatever previously unowned resources he appropriates or "mixes his labor with". From these twin axioms – self-ownership and "homesteading" – stem the justification for the entire system of property rights titles in
5016-596: Is a tax on the consumption of carbon-based non-renewable fuels, such as petrol, diesel-fuel, jet fuels, and natural gas. The object is to reduce the release of carbon into the atmosphere. In the United Kingdom, vehicle excise duty is an annual tax on vehicle ownership. An import or export tariff (also called customs duty or impost) is a charge for the movement of goods through a political border. Tariffs discourage trade , and they may be used by governments to protect domestic industries. A proportion of tariff revenues
5148-426: Is also possible to levy a tax on tax, as with a gross receipts tax . In economic terms ( circular flow of income ), taxation transfers wealth from households or businesses to the government. This affects economic growth and welfare , which can be increased (known as fiscal multiplier ) or decreased (known as excess burden of taxation ). Consequently, taxation is a highly debated topic by some, as although taxation
5280-440: Is an ad valorem tax levy on the value of a property that the owner of the property is required to pay to a government in which the property is situated. Multiple jurisdictions may tax the same property. There are three general varieties of property: land, improvements to land (immovable human-made things, e.g. buildings), and personal property (movable things). Real estate or realty is the combination of land and improvements to
5412-446: Is based on the assumption that all property is privately held, "including all streets, rivers, airports, and harbors" which forms the foundation of his views on immigration . Some anarcho-capitalists strongly oppose intellectual property (i.e., trademarks , patents , copyrights ). Stephan N. Kinsella argues that ownership only relates to tangible assets. The society envisioned by anarcho-capitalists has been labelled by them as
John Locke Foundation - Misplaced Pages Continue
5544-462: Is competition among different brands of cars". Friedman says whether this would lead to a libertarian society "remains to be proven". He says it is a possibility that very un-libertarian laws may result, such as laws against drugs, but he thinks this would be rare. He reasons that "if the value of a law to its supporters is less than its cost to its victims, that law ... will not survive in an anarcho-capitalist society". Anarcho-capitalists only accept
5676-715: Is concerned primarily with state-based issues. But under Donald Bryson, its current president, the foundation has become more concerned with national politics and growing threats from both the left and the right. The John William Pope Center for Higher Education Policy was in its initial stages a project of the John Locke Foundation. The John Locke Foundation's research staff regularly publishes scholarly articles and reports on topics such as budget and tax policy; regulatory, legal, and environmental policy; education policy; and county and local government, including transportation and land-use policies. In 2015, JLF initiated
5808-484: Is considered the most viable option to operate the government (instead of widespread state ownership of the means of production ), as taxation enables the government to generate revenue without heavily interfering with the market and private businesses; taxation preserves the efficiency and productivity of the private sector by allowing individuals and companies to make their own economic decisions, engage in flexible production , competition , and innovation as
5940-433: Is deemed necessary by consensus for society to function and grow in an orderly and equitable manner through the government provision of public goods and public services , others such as libertarians and anarcho-capitalists are anti-taxation and denounce taxation broadly or in its entirety, classifying taxation as theft or extortion through coercion along with the use of force . Within market economies, taxation
6072-464: Is economically justified, as it will not deter production, distort market mechanisms or otherwise create deadweight losses the way other taxes do. When real estate is held by a higher government unit or some other entity not subject to taxation by the local government, the taxing authority may receive a payment in lieu of taxes to compensate it for some or all of the foregone tax revenues. In many jurisdictions (including many American states), there
6204-495: Is generally a gain on sale of capital assets—that is, those assets not held for sale in the ordinary course of business. Capital assets include personal assets in many jurisdictions. Some jurisdictions provide preferential rates of tax or only partial taxation for capital gains. Some jurisdictions impose different rates or levels of capital-gains taxation based on the length of time the asset was held. Because tax rates are often much lower for capital gains than for ordinary income, there
6336-468: Is imported by a machine manufacturer. That manufacturer will pay the VAT on the purchase price, remitting that amount to the government. The manufacturer will then transform the steel into a machine, selling the machine for a higher price to a wholesale distributor. The manufacturer will collect the VAT on the higher price but will remit to the government only the excess related to the "value-added" (the price over
6468-455: Is impossible" without the state. According to Jeremy Jennings , "[i]t is hard not to conclude that these ideas," referring to anarcho-capitalism, have "roots deep in classical liberalism" and "are described as anarchist only on the basis of a misunderstanding of what anarchism is." For Jennings, "anarchism does not stand for the untrammelled freedom of the individual (as the 'anarcho-capitalists' appear to believe) but, as we have already seen, for
6600-567: Is in terms of the non-aggression principle that Rothbard defined his interpretation of anarchism, "a system which provides no legal sanction for such aggression ['against person and property']"; and wrote that "what anarchism proposes to do, then, is to abolish the State, i.e. to abolish the regularized institution of aggressive coercion". In an interview published in the American libertarian journal The New Banner , Rothbard stated that "capitalism
6732-481: Is in the area of law. In The Market for Liberty , Morris and Linda Tannehill object to any statutory law whatsoever. They argue that all one has to do is ask if one is aggressing against another in order to decide if an act is right or wrong. However, while also supporting a natural prohibition on force and fraud, Rothbard supports the establishment of a mutually agreed-upon centralized libertarian legal code which private courts would pledge to follow, as he presumes
SECTION 50
#17327723020606864-405: Is largely one of the degree to which they take this axiom. Minarchist libertarians such as libertarian political parties would retain the state in some smaller and less invasive form, retaining at the very least public police, courts, and military. However, others might give further allowance for other government programs. In contrast, Rothbard rejects any level of " state intervention ", defining
6996-422: Is legitimized: "Any attempt to claim a new resource that someone does not use would have to be considered invasive of the property right of whoever the first user will turn out to be". Rothbard argued that the resource need not continue to be used in order for it to be the person's property as "for once his labor is mixed with the natural resource, it remains his owned land. His labor has been irretrievably mixed with
7128-541: Is named FairTax . In Canada, the federal sales tax is called the Goods and Services Tax (GST) and now stands at 5%. The provinces of British Columbia, Saskatchewan, Manitoba, and Prince Edward Island also have a provincial sales tax [PST]. The provinces of Nova Scotia, New Brunswick, Newfoundland & Labrador, and Ontario have harmonized their provincial sales taxes with the GST—Harmonized Sales Tax [HST], and thus
7260-503: Is not 'private' property per se but just, innocent, non-criminal private property". Similarly, Karl Hess wrote that "libertarianism wants to advance principles of property but that it in no way wishes to defend, willy nilly, all property which now is called private ... Much of that property is stolen. Much is of dubious title. All of it is deeply intertwined with an immoral, coercive state system". Anarchists view capitalism as an inherently authoritarian and hierarchical system and seek
7392-402: Is often a component of the contracts imagined for an anarcho-capitalist society. According to Matthew O'Keefee , some anarcho-capitalists believe prisons or indentured servitude would be justifiable institutions to deal with those who violate anarcho-capitalist property relations while others believe exile or forced restitution are sufficient. Rothbard stressed the importance of restitution as
7524-528: Is often hypothecated to pay the government to maintain a navy or border police. The classic ways of cheating a tariff are smuggling or declaring a false value of goods. Tax, tariff and trade rules in modern times are usually set together because of their common impact on industrial policy , investment policy , and agricultural policy . A trade bloc is a group of allied countries agreeing to minimize or eliminate tariffs against trade with each other, and possibly to impose protective tariffs on imports from outside
7656-544: Is often imposed based on a deemed disposition of all the individual's property. One example is the United States under the American Jobs Creation Act , where any individual who has a net worth of $ 2 million or an average income-tax liability of $ 127,000 who renounces his or her citizenship and leaves the country is automatically assumed to have done so for tax avoidance reasons and is subject to
7788-486: Is sometimes called a net wealth tax . Recurrent property taxes may be imposed on immovable property (real property) and on some classes of movable property. In addition, recurrent taxes may be imposed on the net wealth of individuals or corporations. Many jurisdictions impose inheritance tax on property at time of inheritance or gift tax at the time of gift transfer. Some jurisdictions impose taxes on financial or capital transactions . A property tax (or millage tax)
7920-465: Is the fullest expression of anarchism, and anarchism is the fullest expression of capitalism". Anarcho-capitalists postulate the privatization of everything, including cities with all their infrastructures, public spaces, streets and urban management systems. Central to Rothbardian anarcho-capitalism are the concepts of self-ownership and original appropriation that combines personal and private property . Hans-Hermann Hoppe wrote: Everyone
8052-462: Is the proper owner of his own physical body as well as of all places and nature-given goods that he occupies and puts to use by means of his body, provided only that no one else has already occupied or used the same places and goods before him. This ownership of "originally appropriated" places and goods by a person implies his right to use and transform these places and goods in any way he sees fit, provided only that he does not change thereby uninvitedly
SECTION 60
#17327723020608184-439: Is the value of a good, service, or property. Sales taxes, tariffs, property taxes, inheritance taxes, and value-added taxes are different types of ad valorem tax. An ad valorem tax is typically imposed at the time of a transaction (sales tax or value-added tax (VAT)) but it may be imposed on an annual basis (property tax) or in connection with another significant event (inheritance tax or tariffs). In contrast to ad valorem taxation
8316-416: Is through voluntary trade, gift, or labor-based original appropriation , rather than through aggression or fraud. Anarcho-capitalists state that there could be cases where common property may develop in a Lockean natural rights framework. Anarcho-capitalists make the example of a number of private businesses which may arise in an area, each owning the land and buildings that they use, but they argue that
8448-399: Is to reduce the environmental impact by repricing . Economists describe environmental impacts as negative externalities . As early as 1920, Arthur Pigou suggested a tax to deal with externalities (see also the section on Increased economic welfare below). The proper implementation of environmental taxes has been the subject of a long-lasting debate. An important feature of tax systems is
8580-464: Is usually described alongside libertarian Marxism as the libertarian wing of the socialist movement and as having a historical association with anti-capitalism and socialism , anarchists believe that capitalism is incompatible with social and economic equality and therefore do not recognize anarcho-capitalism as an anarchist school of thought . In particular, anarchists argue that capitalist transactions are not voluntary and that maintaining
8712-412: Is widespread controversy and dispute about the proper definition of capital. Corporate tax refers to income tax, capital tax, net-worth tax, or other taxes imposed on corporations. Rates of tax and the taxable base for corporations may differ from those for individuals or for other taxable persons. Many countries provide publicly funded retirement or healthcare systems. In connection with these systems,
8844-863: The American Old West , Gaelic Ireland , and merchant law , admiralty law , and early common law . Anarcho-capitalism is distinguished from minarchism , which advocates a minimal governing body (typically a night-watchman state limited to protecting individuals from aggression and enforcing private property) and from Objectivism (which is a broader philosophy advocating a limited role, yet unlimited size, of said government). Anarcho-capitalists consider themselves to be anarchists, however unlike most anarchists, they support private property and private institutions. Anarcho-capitalism developed from Austrian School - neoliberalism and individualist anarchism . Almost all anarchist movements do not consider anarcho-capitalism to be anarchist because it lacks
8976-560: The Austrian School of economic thought. Scholars additionally associate anarcho-capitalism with neo-classical liberalism , radical neoliberalism and right-libertarianism . In both its social and individualist forms, anarchism is usually considered an anti-capitalist and radical left-wing or far-left movement that promotes libertarian socialist economic theories such as collectivism , communism , individualism , mutualism and syndicalism . Because anarchism
9108-681: The Lockean proviso , and followed the rule of "first come, first served", without any consideration of how much resources are left for other individuals. Anarcho-capitalists advocate private ownership of the means of production and the allocation of the product of labor created by workers within the context of wage labour and the free market – that is through decisions made by property and capital owners, regardless of what an individual needs or does not need. Original appropriation allows an individual to claim any never-before-used resources, including land and by improving or otherwise using it, own it with
9240-463: The abolishment of private property . There is disagreement between anarchists and anarcho-capitalists as the former generally rejects anarcho-capitalism as a form of anarchism and considers anarcho-capitalism a contradiction in terms, while the latter holds that the abolishment of private property would require expropriation which is "counterproductive to order" and would require a state. As opposed to anarchists, most anarcho-capitalists reject
9372-413: The commons . However, some of them propose that non-state public or community property can also exist in an anarcho-capitalist society. For anarcho-capitalists, what is important is that it is "acquired" and transferred without help or hindrance from what they call the "compulsory state". Deontological anarcho-capitalists believe that the only just and most economically beneficial way to acquire property
9504-472: The customs house , and revenue derived from that source is called excise revenue proper. The fundamental conception of the term is that of a tax on articles produced or manufactured in a country. In the taxation of such articles of luxury as spirits , beer, tobacco, and cigars, it has been the practice to place a certain duty on the importation of these articles (a customs duty ). Excises (or exemptions from them) are also used to modify consumption patterns of
9636-402: The elderly , unemployment benefits , transfer payments , subsidies and public transportation . Energy , water and waste management systems are also common public utilities . According to the proponents of the chartalist theory of money creation , taxes are not needed for government revenue, as long as the government in question is able to issue fiat money . According to this view,
9768-710: The non-aggression principle , free markets and self-ownership . In the absence of statute , anarcho-capitalists hold that society tends to contractually self-regulate and civilize through participation in the free market, which they describe as a voluntary society involving the voluntary exchange of goods and services. In a theoretical anarcho-capitalist society a system of private property would still exist, and would be enforced by private defense agencies and/or insurance companies that were selected by property owners, whose ownership rights or claims would be enforced by private defence agencies and/or insurance companies. These agencies or companies would operate competitively in
9900-588: The 1960s, a philosophical movement arose in the US that championed "reason, ethical egoism, and free-market capitalism". According to Oliver, anarcho-capitalism is a political theory which logically follows the philosophical conclusions of Objectivism , a philosophical system developed by Ayn Rand , but he acknowledges that his advocacy of anarcho-capitalism is "quite at odds with Rand's ardent defense of 'limited government ' ". Professor Lisa Duggan also says that Rand's anti-statist, pro–"free market" stances went on to shape
10032-690: The North Carolina state government must address. The organization also publishes the Carolina Journal , a bi-monthly publication, as well as CarolinaJournal.com. Taxes A tax is a mandatory financial charge or levy imposed on a taxpayer (an individual or legal entity ) by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities . Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying
10164-558: The above states, only Alaska and New Hampshire do not levy a state sales tax. Additional information can be obtained at the Federation of Tax Administrators website. In the United States, there is a growing movement for the replacement of all federal payroll and income taxes (both corporate and personal) with a national retail sales tax and monthly tax rebate to households of citizens and legal resident aliens. The tax proposal
10296-410: The application of anarchist ideals as advocated by what they term "left-wing anarchists" would require an authoritarian body of some sort to impose it. Based on their understanding and interpretation of anarchism, in order to forcefully prevent people from accumulating capital, which they believe is a goal of anarchists, there would necessarily be a redistributive organization of some sort which would have
10428-485: The arts , public works , distribution , data collection and dissemination , public insurance , and the operation of government itself. A government's ability to raise taxes is called its fiscal capacity . When expenditures exceed tax revenue , a government accumulates government debt . A portion of taxes may be used to service past debts. Governments also use taxes to fund welfare and public services . These services can include education systems , pensions for
10560-416: The authority to in essence exact a tax and re-allocate the resulting resources to a larger group of people. They conclude that this theoretical body would inherently have political power and would be nothing short of a state. The difference between such an arrangement and an anarcho-capitalist system is what anarcho-capitalists see as the voluntary nature of organization within anarcho-capitalism contrasted with
10692-412: The bloc. A customs union has a common external tariff , and the participating countries share the revenues from tariffs on goods entering the customs union. In some societies, tariffs also could be imposed by local authorities on the movement of goods between regions (or via specific internal gateways). A notable example is the likin , which became an important revenue source for local governments in
10824-683: The class structure of a capitalist society requires coercion which is incompatible with an anarchist society. The usage of libertarian is also in dispute. While both anarchists and anarcho-capitalists have used it, libertarian was synonymous with anarchist until the mid-20th century, when anarcho-capitalist theory developed. Anarcho-capitalists are distinguished from the dominant anarchist tradition by their relation to property and capital . While both anarchism and anarcho-capitalism share general antipathy towards government authority, anarcho-capitalism favors free-market capitalism . Anarchists, including egoists such as Max Stirner , have supported
10956-412: The collective defense of individual liberty (i.e. courts, military, or police forces) insofar as such groups are formed and paid for on an explicitly voluntary basis. However, their complaint is not just that the state's defensive services are funded by taxation, but that the state assumes it is the only legitimate practitioner of physical force – that is, they believe it forcibly prevents
11088-404: The cost of the sheet steel). The wholesale distributor will then continue the process, charging the retail distributor the VAT on the entire price to the retailer, but remitting only the amount related to the distribution mark-up to the government. The last VAT amount is paid by the eventual retail customer who cannot recover any of the previously paid VAT. For a VAT and sales tax of identical rates,
11220-407: The country typically requires employers or employees to make compulsory payments. These payments are often computed by reference to wages or earnings from self-employment. Tax rates are generally fixed, but a different rate may be imposed on employers than on employees. Some systems provide an upper limit on earnings subject to the tax. A few systems provide that the tax is payable only on wages above
11352-418: The designation of anarcho-capitalism , believing that capitalism may either refer to the laissez-faire market they support or the government-regulated system that they oppose. Rothbard argued that anarcho-capitalism is the only true form of anarchism – the only form of anarchism that could possibly exist in reality as he maintained that any other form presupposes authoritarian enforcement of
11484-422: The effect of discouraging speculative purchases of assets by decreasing liquidity. In the United States , transfer tax is often charged by the state or local government and (in the case of real property transfers) can be tied to the recording of the deed or other transfer documents. Some countries' governments will require a declaration of the taxpayers' balance sheet (assets and liabilities), and from that exact
11616-464: The estates of the deceased. In contrast with a tax on real estate (land and buildings), a land-value tax (or LVT) is levied only on the unimproved value of the land ("land" in this instance may mean either the economic term, i.e., all-natural resources, or the natural resources associated with specific areas of the Earth's surface: "lots" or "land parcels"). Proponents of the land-value tax argue that it
11748-440: The expropriation of nominally "private property" if it is the result of state-initiated force such as businesses that receive grants and subsidies. Rothbard further proposed that businesses who receive at least 50% of their funding from the state be confiscated by the workers, writing: "What we libertarians object to, then, is not government per se but crime, what we object to is unjust or criminal property titles; what we are for
11880-793: The government expenditure of taxes raised is often highly debated in politics and economics . Tax collection is performed by a government agency such as the Internal Revenue Service (IRS) in the United States , His Majesty's Revenue and Customs (HMRC) in the United Kingdom , the Canada Revenue Agency or the Australian Taxation Office . When taxes are not fully paid, the state may impose civil penalties (such as fines or forfeiture ) or criminal penalties (such as incarceration ) on
12012-472: The historically central anti-capitalist emphasis of anarchism. They also argue that anarchism is incompatible with capitalist structures. According to several scholars, Anarcho-capitalism lies outside the tradition of the vast majority of anarchist schools of thought and is more closely affiliated with capitalism , right-libertarianism and neoliberalism . Traditionally, anarchists oppose and reject capitalism, and consider "anarcho-capitalism" to be
12144-399: The homestead principle. If property is held by the state, Rothbard advocated its confiscation and "return to the private sector", writing that "any property in the hands of the State is in the hands of thieves, and should be liberated as quickly as possible". Rothbard proposed that state universities be seized by the students and faculty under the homestead principle. Rothbard also supported
12276-506: The household. Thus, tax collectors often monitor newspaper articles for stories about wealthy people who have lent art to museums for public display, because the artworks have then become subject to personal property tax. If an artwork had to be sent to another state for some touch-ups, it may have become subject to personal property tax in that state as well. Inheritance tax, also called estate tax, are taxes that arise for inheritance or inherited income. In United States tax law , there
12408-591: The individual characteristics of the taxpayer, whereas indirect taxes are levied on transactions irrespective of the circumstances of buyer or seller." According to this definition, for example, income tax is "direct", and sales tax is "indirect". Anarcho-capitalism Anarcho-capitalism (colloquially: ancap or an-cap ) is an anti-statist , libertarian political philosophy and economic theory that seeks to abolish centralized states in favor of stateless societies with systems of private property enforced by private agencies, based on concepts such as
12540-512: The jurisdiction, which tax-law principles in the jurisdiction may modify or replace. The incidence of taxation varies by system, and some systems may be viewed as progressive or regressive . Rates of tax may vary or be constant (flat) by income level. Many systems allow individuals certain personal allowances and other non-business reductions to taxable income, although business deductions tend to be favored over personal deductions. Tax-collection agencies often collect personal income tax on
12672-414: The land, and the land is therefore his or his assigns' in perpetuity". Rothbard also spoke about a theory of justice in property rights: It is not enough to call simply for the defense of "the rights of private property"; there must be an adequate theory of justice in property rights, else any property that some State once decreed to be "private" must now be defended by libertarians, no matter how unjust
12804-734: The land. Property taxes are usually charged on a recurrent basis (e.g., yearly). A common type of property tax is an annual charge on the ownership of real estate , where the tax base is the estimated value of the property. For a period of over 150 years from 1695, the government of England levied a window tax , with the result that one can still see listed buildings with windows bricked up in order to save their owner's money. A similar tax on hearths existed in France and elsewhere, with similar results. The two most common types of event-driven property taxes are stamp duty , charged upon change of ownership, and inheritance tax , which many countries impose on
12936-537: The language of anarchism, anarcho-capitalism only shares anarchism's antipathy towards the state and not anarchism's antipathy towards hierarchy as theorists expect from anarcho-capitalist economic power relations. It follows a different paradigm from anarchism and has a fundamentally different approach and goals. In spite of the anarcho- in its title, anarcho-capitalism is more closely affiliated with capitalism, right-libertarianism , and liberalism than with anarchism. Some within this laissez-faire tradition reject
13068-508: The late Qing China . Occupational taxes or license fees may be imposed on businesses or individuals engaged in certain businesses. Many jurisdictions impose a tax on vehicles. A poll tax, also called a per capita tax , or capitation tax , is a tax that levies a set amount per individual. It is an example of the concept of fixed tax . One of the earliest taxes mentioned in the Bible of a half-shekel per annum from each adult Jew (Ex. 30:11–16)
13200-460: The legalization of organ markets, as in Iran's renal market . Other interpretations conclude that banning such contracts would in itself be an unacceptably invasive interference in the right to contract. Included in the right of contract is "the right to contract oneself out for employment by others". While anarchists criticize wage labour describing it as wage slavery , anarcho-capitalists view it as
13332-475: The loss, such that business losses can only be deducted against business income tax by carrying forward the loss to later tax years. In economics, a negative income tax (abbreviated NIT) is a progressive income tax system where people earning below a certain amount receive supplemental payment from the government instead of paying taxes to the government. Most jurisdictions imposing an income tax treat capital gains as part of income subject to tax. Capital gain
13464-607: The market to internalize externalities and provide services that customers desire. Rothbard stated that the American Revolutionary War and the War of Southern Secession were the only two just wars in American military history. Some anarcho-capitalists such as Rothbard feel that violent revolution is counter-productive and prefer voluntary forms of economic secession to the extent possible. Retributive justice
13596-416: The non-aggression axiom is described by Rothbard as a prohibition against the initiation of force, or the threat of force, against persons (in which he includes direct violence, assault and murder) or property (in which he includes fraud, burglary, theft and taxation). The initiation of force is usually referred to as aggression or coercion . The difference between anarcho-capitalists and other libertarians
13728-586: The non-paying entity or individual. The levying of taxes aims to raise revenue to fund governing , to alter prices in order to affect demand , or to regulate some form of cost or benefit . States and their functional equivalents throughout history have used the money provided by taxation to carry out many functions. Some of these include expenditures on economic infrastructure ( roads , public transportation , sanitation , legal systems , public security , public education , public health systems ), military , scientific research & development , culture and
13860-487: The notion of capitalism, hierarchies and private property. Albert Meltzer argued that anarcho-capitalism simply cannot be anarchism because capitalism and the state are inextricably interlinked and because capitalism exhibits domineering hierarchical structures such as that between an employer and an employee. Anna Morgenstern approaches this topic from the opposite perspective, arguing that anarcho-capitalists are not really capitalists because "mass concentration of capital
13992-521: The paths between them become cleared and trodden incrementally through customer and commercial movement. These thoroughfares may become valuable to the community, but according to them ownership cannot be attributed to any single person and original appropriation does not apply because many contributed the labor necessary to create them. In order to prevent it from falling to the " tragedy of the commons ", anarcho-capitalists suggest transitioning from common to private property, wherein an individual would make
14124-417: The percentage of the tax burden as it relates to income or consumption. The terms progressive, regressive, and proportional are used to describe the way the rate progresses from low to high, from high to low, or proportionally. The terms describe a distribution effect, which can be applied to any type of tax system (income or consumption) that meets the definition. The terms can also be used to apply meaning to
14256-466: The physical integrity of places and goods originally appropriated by another person. In particular, once a place or good has been first appropriated by, in John Locke 's phrase, 'mixing one's labor' with it, ownership in such places and goods can be acquired only by means of a voluntary – contractual – transfer of its property title from a previous to a later owner. Rothbard however rejected
14388-452: The politics of anarcho-capitalism. According to Patrik Schumacher , the political ideology and programme of anarcho-capitalism envisages the radicalization of the neoliberal "rollback of the state", and calls for the extension of "entrepreneurial freedom" and "competitive market rationality" to the point where the scope for private enterprise is all-encompassing and "leaves no space for state action whatsoever". Anarcho-capitalists oppose
14520-424: The primary focus of a libertarian legal order and advocated for corporal punishment for petty vandals and the death penalty for murders. American economist Bruce L. Benson argues that legal codes may impose punitive damages for intentional torts in the interest of deterring crime. Benson gives the example of a thief who breaks into a house by picking a lock. Even if caught before taking anything, Benson argues that
14652-513: The private sector from providing comprehensive security, such as a police, judicial and prison systems to protect individuals from aggressors. Anarcho-capitalists believe that there is nothing morally superior about the state which would grant it, but not private individuals, a right to use physical force to restrain aggressors. If competition in security provision were allowed to exist, prices would also be lower and services would be better according to anarcho-capitalists. According to Molinari : "Under
14784-497: The procedure or how mischievous its consequences. In Justice and Property Rights , Rothbard wrote that "any identifiable owner (the original victim of theft or his heir) must be accorded his property". In the case of slavery, Rothbard claimed that in many cases "the old plantations and the heirs and descendants of the former slaves can be identified, and the reparations can become highly specific indeed". Rothbard believed slaves rightfully own any land they were forced to work on under
14916-405: The protection of an individual's freedom from powers of both government and private property owners. In contrast, while condemning governmental encroachment on personal liberties, anarcho-capitalists support freedoms based on private property rights. Anarcho-capitalist theorist Murray Rothbard argued that protesters should rent a street for protest from its owners. The abolition of public amenities
15048-458: The public sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments. Governments also obtain resources by "creating" money and coins (for example, by printing bills and by minting coins), through voluntary gifts (for example, contributions to public universities and museums), by imposing penalties (such as traffic fines ), by borrowing and confiscating criminal proceeds. From
15180-422: The publication of an index of freedom, ranking each of the states in their relative freedom. According to North Carolina's WRAL news, John Locke Foundation staff are frequently quoted in news outlets across the state and appear as guests on public affairs programs, and columns by foundation staff appear in local newspapers. Every two years, JLF produces an agenda document that focuses on issues that JLF believes
15312-443: The purely free market, those men would simply announce to their creditors that their liability is limited to the capital specifically invested in the corporation". There are limits to the right to contract under some interpretations of anarcho-capitalism. Rothbard believes that the right to contract is based in inalienable rights and because of this any contract that implicitly violates those rights can be voided at will, preventing
15444-440: The purpose of taxation is to maintain the stability of the currency, express public policy regarding the distribution of wealth, subsidizing certain industries or population groups or isolating the costs of certain benefits, such as highways or social security. The Organisation for Economic Co-operation and Development (OECD) publishes an analysis of the tax systems of member countries. As part of such analysis, OECD has developed
15576-491: The right amount of tax at the right time and securing the correct tax allowances and tax relief. The first known taxation occurred in Ancient Egypt around 3000–2800 BC. Taxes consist of direct or indirect taxes and may be paid in money or as labor equivalent. All countries have a tax system in place to pay for public, common societal, or agreed national needs and for the functions of government. Some countries levy
15708-426: The same "absolute right" as their own body, and retaining those rights forever, regardless of whether the resource is still being used by them. According to Rothbard, property can only come about through labor, therefore original appropriation of land is not legitimate by merely claiming it or building a fence around it – it is only by using land and by mixing one's labor with it that original appropriation
15840-506: The same portmanteau term. These two contradictory concepts are what I would call 'free-market capitalism' on the one hand, and 'state capitalism' on the other". "The difference between free-market capitalism and state capitalism", writes Rothbard, "is precisely the difference between, on the one hand, peaceful, voluntary exchange, and on the other, violent expropriation". He continues: "State capitalism inevitably creates all sorts of problems which become insoluble". Traditional anarchists reject
15972-406: The state and seek to privatize any useful service the government presently provides, such as education, infrastructure, or the enforcement of law. They see capitalism and the " free market " as the basis for a free and prosperous society. Murray Rothbard stated that the difference between free-market capitalism and state capitalism is the difference between "peaceful, voluntary exchange" and
16104-412: The state as a coercive monopoly and as the only entity in human society, excluding acknowledged criminals, that derives its income entirely from coercion, in the form of taxation, which Rothbard describes as "compulsory seizure of the property of the State's inhabitants, or subjects." Some anarcho-capitalists such as Rothbard accept the non-aggression axiom on an intrinsic moral or natural law basis. It
16236-410: The supply of people is in fact not fixed over time: on average, couples will choose to have fewer children if a poll tax is imposed. The introduction of a poll tax in medieval England was the primary cause of the 1381 Peasants' Revolt . Scotland was the first to be used to test the new poll tax in 1989 with England and Wales in 1990. The change from progressive local taxation based on property values to
16368-516: The taxation of select consumption, such as a tax on luxury goods and the exemption of basic necessities may be described as having progressive effects as it increases a tax burden on high end consumption and decreases a tax burden on low end consumption. Taxes are sometimes referred to as "direct taxes" or "indirect taxes". The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. An economic definition, by Atkinson, states that "...direct taxes may be adjusted to
16500-703: The term anarcho-capitalism to distinguish his philosophy from anarchism that opposes private property as well as to distinguish it from individualist anarchism. Other terms sometimes used by proponents of the philosophy include: Maverick Edwards of the Liberty University describes anarcho-capitalism as a political, social, and economic theory that places markets as the central "governing body" and where government no longer "grants" rights to its citizenry. Writer Stanisław Wójtowicz says that although anarcho-capitalists are against centralized states, they believe that all people would naturally share and agree to
16632-455: The thief would still owe the victim for violating the sanctity of his property rights. Benson opines that despite the lack of objectively measurable losses in such cases, "standardized rules that are generally perceived to be fair by members of the community would, in all likelihood, be established through precedent, allowing judgments to specify payments that are reasonably appropriate for most criminal offenses". Morris and Linda Tannehill raise
16764-405: The total payroll. These taxes may be imposed in both the country and sub-country levels. A wealth tax is levied on the total value of personal assets, including: bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses , financial securities , and personal trusts. Liabilities (primarily mortgages and other loans) are typically deducted, hence it
16896-681: The total tax paid is the same, but it is paid at differing points in the process. VAT is usually administrated by requiring the company to complete a VAT return, giving details of VAT it has been charged (referred to as input tax) and VAT it has charged to others (referred to as output tax). The difference between output tax and input tax is payable to the Local Tax Authority. Many tax authorities have introduced automated VAT which has increased accountability and auditability , by utilizing computer systems, thereby also enabling anti-cybercrime offices as well. Sales taxes are levied when
17028-443: The view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector , levied on a basis of predetermined criteria and without reference to specific benefits received. In modern taxation systems, governments levy taxes in money; but in-kind and corvée taxation are characteristic of traditional or pre- capitalist states and their functional equivalents. The method of taxation and
17160-516: The year 1643, as part of a scheme of revenue and taxation devised by parliamentarian John Pym and approved by the Long Parliament . These duties consisted of charges on beer, ale, cider, cherry wine, and tobacco, to which list were afterward added paper, soap, candles, malt, hops, and sweets. The basic principle of excise duties was that they were taxes on the production, manufacture, or distribution of articles which could not be taxed through
17292-443: Was a form of the poll tax. Poll taxes are administratively cheap because they are easy to compute and collect and difficult to cheat. Economists have considered poll taxes economically efficient because people are presumed to be in fixed supply and poll taxes, therefore, do not lead to economic distortions. However, poll taxes are very unpopular because poorer people pay a higher proportion of their income than richer people. In addition,
17424-516: Was credited with coining the terms anarcho-capitalist and anarcho-capitalism in 1971. A leading figure in the 20th-century American libertarian movement, Rothbard synthesized elements from the Austrian School , classical liberalism and 19th-century American individualist anarchists and mutualists Lysander Spooner and Benjamin Tucker , while rejecting the labor theory of value . Rothbard's anarcho-capitalist society would operate under
#59940