Yup, fully agree.
But I do think that’s the point at which libertarians might start banging on about theft again.
At least, they might say, “OK, the government may not tax production, but they do tax exchange — and that’s theft, because if I’ve produced something, I should be able to dispose of it however I want.”
Or they might say, “But I want to do all my business in BitCoin, which isn’t issued by any government, and yet they still want me to pay taxes in their dollars! To earn those dollars, I have to sell my BitCoins! That’s theft!”
But anyway: thanks for the thought-provoking article.