Is the Government’s Budget Equal to GDP?

by | Aug 8, 2016

Is the Government’s Budget Equal to GDP?

by | Aug 8, 2016

Memo to news people: tax cuts don’t have to be paid for. The money is ours; the government takes it from us by threat of force, i.e., taxation. It’s government programs that have to be paid for. Tax cuts are not government programs. So if you want to ask how government programs will be paid for if taxes are cut, fine. I will answer that the programs should be abolished.

The more you think about the notion that tax cuts must be paid for, the more ridiculous it sounds. One might say tax cuts have have to be made up for (by cutting spending), because the government would have less revenue, but not paid for. Moreover, since taxpayers pay for everything government does (sooner or later), the conventional wisdom about paying for tax cuts translates to: How should the taxpayers pay for their tax cuts? To which the only proper answer is: Huh? Say what?

From the taxpayers’ vantage, tax cuts cost nothing. We might say they cost the politicians, bureaucrats, and government contractors something–but it’s something they had no right to anyway. Securing my wallet “costs” a would-be thief my money. But who cares?

Final point: a hidden premise of this belief is that the government properly owns all wealth and income. In budget-talk when the government gives you a chance to recover or hold onto some of your money, say, via a tax deduction or credit, that is known as a “tax expenditure”; in other words, it’s just another way for government to spend (its) money. But under that way of thinking it follows that not taking the money in the first place is also a tax expenditure. What’s the difference between, on the one hand, taking money and giving some back and, on the other, not taking the full amount to begin with? Thus the whole GDP must be the government’s budget because the politicians, as they see things, “spend” all of it one way or another.
This is pretty absurd. So let’s just acknowledge that what you honestly earn is yours and that the government is a thief because taxation is theft.

Read My Books

Our Books

Shop books published by the Libertarian Institute.

Libertarian Institute Merch from Libertas Bella

Support via Amazon Smile

Support The Libertarian Institute

We rely on the generosity of our donors to make all of this possible. Support The legendary Sheldon Richman, the firebrand Pete Quinones, the brilliant Kyle Anzalone and our great group of writers and podcasters.

About Sheldon Richman

Sheldon Richman is the executive editor of The Libertarian Institute, senior fellow and chair of the trustees of the Center for a Stateless Society, and a contributing editor at Antiwar.com. He is the former senior editor at the Cato Institute and Institute for Humane Studies, former editor of The Freeman, published by the Foundation for Economic Education, and former vice president at the Future of Freedom Foundation. His latest books are Coming to Palestine and What Social Animals Owe to Each Other.

Our Books

6 Libooks011721lg

Related Articles

Related

The Con Job of the Century?

The Con Job of the Century?

Over the course of the past century, a number of truly awe-inspiring heists have been carried out by con artists, whose modus operandi is to exploit human frailties such as credulity, insecurity and greed. Con is short for confidence, for the con artist must first...

read more
The ABC’s of PRO

The ABC’s of PRO

Just when you thought our wise overlords in government couldn’t make our economic situation any worse, Joe Biden dares to dream the impossible dream, and endorses legislation to stick it to freelance contractors called: The PRO Act. This is nearly identical to the...

read more
The Central Banking Scam

The Central Banking Scam

Oddly enough, the one question that finally brought me to anarchy was: “where does money come from?” It was perplexing to me that the answer to such a simple question could be so simple, yet so complex—and, moreover, absurd. So? Where does money come from? I found...

read more
TGIF: Is “Free Election” an Oxymoron?

TGIF: Is “Free Election” an Oxymoron?

American leaders and their loyal media pundits love to sit in judgment of other countries' election, declaring them fair or rigged according to their seemingly meticulous standards. In fact, the real standard is that the regimes "we" like hold free and fair (enough)...

read more

Pin It on Pinterest

Share This