Taxation is theft.

But is it really?

Most will argue that it is not, because the government provides important services with the revenue derived from taxes. We all benefit from these services, therefore, taxation does not constitute theft. It is “the price we pay to live in a civilized society.”

For instance, the great economist Adam Smith believed taxation was just and necessary, and that citizens should pay taxes in proportion to the benefits they receive.

“The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

But all of this ignores the fundamental nature of taxation. Governments coerce the payment of taxes at gunpoint. We have no choice in the matter. Whether we want the services the government provides or not, we must ante up. And most of us would happily do without many, if not most, of the “services” provided by the government. For example, I would happily forgo bombing seven countries across the globe or funding Big Brother’s voyeurism.

In practice, taxation works a lot like a mafia protection racket.

Say the mob comes into a rough neighborhood and pays Joe the grocer a visit. “We’re going to provide you protection, and you’re going to pay us $500 a month.” Now the mob will undeniably provide Joe a valuable service. Everybody needs protection, right? Robbers have victimized Joe several times. Last year he got mugged walking down the street. So, it’s not like Joe won’t get something for his money. But let’s say Joe doesn’t want protection. Perhaps he prefers to obtain protection services from somebody else.  Or maybe he thinks he can handle things on his own.

Too bad.

If Joe doesn’t pay up, Guido will come by for a visit toting a baseball bat to “collect.” Because Joe would prefer not to end up wearing cement shoes at the bottom of the East River, he pays up and continues to enjoy the benefits of mafia control over his neighborhood.

Clearly, the fact Joe receives some tangible benefit from this extortion racket doesn’t justify its existence. No sane person would say, “Well, the mafia has every right to collect that money because it provides wonderful benefits to the neighborhood.”

That’s why the phrase “taxation is theft” rings true. It’s not that it doesn’t fund some useful things or provide tangible benefits, at least to some people. The problem lies in the lack of consent and its coercive nature. When you boil it all down, picking my pocket for my own good is still picking my pocket.