is Taxation a Theft?

It’s a common occurrence for many of us that when our salary is deposited, a fleeting moment of happiness is often followed by a tinge of disappointment due to the significant tax deductions. I, too, shared this sentiment until I delved into various psychological courses centered around the concept of justice.

This blog doesn’t solely represent my viewpoint but serves as a compilation of perspectives from various philosophers and their arguments. While I’ll offer my subjective opinion, it’s perfectly alright if yours differs from mine.

In the realm of justice, two principles — Utilitarianism and Libertarianism — are often discussed. To give a basic understanding of these principles:

Utilitarianism :

Utilitarianism evaluates moral decisions by considering the outcomes and impacts of those decisions on the well-being of individuals or society as a whole. Whatever is good for the maximum, it's morally correct.

Eg. Imagine a situation where a hospital has a limited number of life-saving medications, and there are several patients in critical condition. If the hospital staff decides to distribute the medication to those patients who are most likely to survive with its help, this decision aligns with utilitarianism. Even though it might be distressing to those who don’t receive the medication, the goal is to ensure the best possible outcome for the most significant number of people, thereby minimizing suffering in the broader context.

Libertarianism :

Libertarianism is a political philosophy that upholds individual liberty as its core principle. It advocates for minimal government interference in personal lives and economic affairs.

For instance, libertarians argue for fewer regulations and restrictions on starting and operating a business, believing that the free market should dictate success, not government bureaucracy. The right to life and liberty and owning property are fundamental rights. This means that these rights cannot be taken away by anyone, including the government itself.

With these principles in mind, let’s discuss the philosophy of taxation.

Robert Nozick, a libertarian philosopher, gave very objective arguments on tax. His perspective ultimately suggests that taxation implies that we don’t truly own our lives, thus taking away our fundamental rights.

1. Taxation = Taking of my Earning

2. Taking of My Eraning = Taking my labour Work

3. My Labour Work(Taken by govt) = Forced labour for which I am not getting paid

4. Forced Labour = Salivary

In summary, the government taxes me on my labour, which is a product of my intellect, my efforts, and my strength. This implies that I am working for the government without compensation, effectively making me a slave for a portion of my life.

Where then are my rights to life and liberty?

Does this mean I don’t own myself? What about my fundamental rights, especially when my earnings do not infringe upon anyone else’s rights?

Is there a discrepancy here?

Government decisions are mostly based on Utilitarianism, which posits that whatever benefits the majority is morally correct. So, from the government’s perspective, taxation is not theft.

From an individual standpoint, I don’t perceive taxation as theft.

Can you be certain you’d be able to earn and live a peaceful life if the society you live in is unstable and chaotic?

Don’t we owe something to the stability and peace that our society provides?

I believe we do, and we attempt to repay this through taxes, contributing to a well-established society that ultimately helps us lead better lives. Although there are several flaws in the taxation process, which I don’t deny, I fundamentally don’t view taxation as theft.