[Front Matter and Table of Contents]: The front matter includes the title page, copyright information, and a detailed table of contents for 'Taxation and Confiscation'. The book is divided into four main sections: In Search of Social Justice, Instrument of Social Reform, Regulating Production, and Weapon of Destruction. [Introduction by Hans F. Sennholz]: Hans Sennholz introduces the volume by critiquing the shift from classical proportionate taxation to modern progressive taxation based on 'ability to pay'. He argues that the Deficit Reduction Act of 1993 and similar policies lead to the decapitalization of industry and lower living standards by consuming productive capital to fund government spending. [The Elements of a Fair System of Taxation]: Ridgway K. Foley, Jr. analyzes the philosophical basis of taxation, distinguishing between revenue raising, looting, and social engineering. He rejects 'voluntary taxation' as unfeasible and 'progressive taxation' as immoral, instead proposing a flat-rate proportional gross receipts tax. He also discusses the 'bracket creep' caused by inflation and critiques the use of fiat money as a hidden tax. [The General Welfare]: Clarence B. Carson examines the 'general welfare' clause of the U.S. Constitution, arguing that its modern interpretation as a mandate for the welfare state is a linguistic and legal distortion. He traces the history of 'poor relief' versus 'welfare' and cites Madison and Monroe to demonstrate that the clause was intended as a restriction on the taxing power, not an open-ended grant of authority for federal spending. [Some Thoughts on Taxation]: George C. Leef argues for a tax system based on the market principle of 'paying for what you get.' He critiques progressive taxation and the 'ability to pay' doctrine as forms of state-sanctioned plunder. Leef advocates for replacing most taxes with user fees and wealth-based assessments for core legal protections, while calling for the total elimination of transfer payments and social engineering through the tax code. [Taxation Theory]: W. M. Curtiss discusses the evolution of taxation from simple revenue collection to a tool for fiscal management and social control. He highlights the rise of 'hidden taxes' such as withholding, social security, and inflation, which mask the true burden on citizens. Curtiss also critiques state lotteries as regressive 'voluntary' taxes and notes the futility of earmarking funds in a system where government spending is so pervasive. [Conclusion: Theories of Government and Taxation]: Concludes the opening discussion on taxation by contrasting two fundamental theories of government: one that protects property and one that plunders it for social leveling. It argues that a clear understanding of government's proper, limited function simplifies the need for complex taxation theories. [The Forgotten Man (1968)]: William Henry Chamberlin revives William Graham Sumner's 1883 concept of the 'Forgotten Man'—the industrious citizen who pays for government handouts to others while receiving none. The essay critiques the expansion of the welfare state, the 'Taxachusetts' model of rising state levies, and the erosion of savings through inflation and graduated income taxes. It calls for organized taxpayer resistance to check the 'bureaucratic nightmare' of modern government spending. [The Squeeze on the Middle Class]: Chamberlin examines the historical role of the middle class as the bulwark of liberty, tracing its roots through Locke and the American Revolution's focus on property rights. He warns that modern statism and the 'English disease' of chronic deficits and inflation are crushing the middle class between rising taxes and devalued currency. The essay argues that the shift from individual responsibility to government-guaranteed security is a backbreaking burden that threatens to destroy creative incentive. [The Mythology of State Spending]: John Hood deconstructs the myths surrounding state-level budget deficits, arguing that they are caused by profligate spending rather than federal aid cuts. He utilizes public choice theory to explain how special interest groups, particularly teacher and public employee unions, dominate the news-gathering process in state capitals to protect their subsidies. The essay highlights the disconnect between rising state employment and actual public needs, urging for better-informed taxpayer advocacy. [School Budgets and Town Meetings]: R.W. Boehm critiques the politicization of local school budgets in New Hampshire, viewing the democratic voting process as a tool for the redistribution of wealth. Drawing on Madisonian warnings about the tyranny of the masses and biblical principles of non-interference, he argues that schooling is not a proper function of government. He posits that replacing the coercive government monopoly with a free market would improve educational quality while lowering costs for taxpayers. [The Forgotten Man (1985)]: Robert Awenius revisits Sumner's 'Forgotten Man' in a mid-1980s context, applying the theory to modern welfare programs, agricultural subsidies, and corporate bailouts. He argues that 'social doctors' devise programs for the disadvantaged that ignore the crushing cumulative effect on the productive citizen. The essay emphasizes that the state's only duty to free men is to protect their power to use their own faculties for their own welfare, rather than attempting to redistribute success. [The Growth of Government in the United States]: Professor Robert Higgs provides a historical analysis of how the U.S. transitioned from a 'minimal state' in the 19th century to a modern leviathan. He introduces his theory that national crises (wars and the Great Depression) serve as catalysts for government expansion, as officials adopt cost-obscuring command-and-control policies. This 'ratchet effect' permanently alters the dominant ideology and the effective Constitution, leading to a thoroughly politicized economy dominated by special-interest predation. [Incentives and Income Taxes]: Russell Shannon uses simple economic analogies, like book club offers and cereal coupons, to explain the law of diminishing marginal returns and its impact on taxation. He argues that progressive tax rates create a perverse incentive structure that discourages extra effort and drives production into the 'underground economy.' The essay supports the Laffer curve thesis, suggesting that reducing tax rates can actually increase total tax revenue by stimulating open economic activity. [Educational Vouchers: The Double Tax]: Gary North presents a sharp critique of Milton Friedman's educational voucher plan from a hardline voluntarist perspective. He argues that vouchers are a 'pseudo-market' scheme that fails to shift sovereignty back to parents because the state remains the source of funding and, therefore, the ultimate regulator. North warns that vouchers will lead to the 'HEW-ification' of private schools through state certification and guidelines, effectively acting as a tool for the state to swallow the last remaining independent educational alternatives. [Conclusion: The Failure of Pseudo-Market Schemes]: The author concludes that the state only adopts pseudo-market schemes, like school vouchers, when they can be used to enhance bureaucratic power and suppress private independence. He argues that vouchers are a 'seal of doom' for independent schools because they invite federal control and undermine the family unit. The section includes a bibliography of key works on bureaucracy and economic calculation by thinkers such as Mises, Hayek, and Friedman. [Exporting Taxes Threatens State Economies]: John Semmens argues against the practice of state legislatures 'exporting' taxes to non-residents (e.g., hotel and car rental taxes). He explains that while these taxes target non-voters, they create a competitive disadvantage that drives away tourists, businesses, and investment capital. The essay highlights that the U.S. Constitution prohibits federal export taxes for similar economic reasons, and warns that attempting to shift the tax burden leads to long-term economic stagnation. [Boom Time for State and Local Government]: John Hood challenges the narrative that the 1980s was a decade of government contraction. He provides data showing that state and local spending actually surged during this period, using New York and North Carolina as case studies. He argues that an expanding economy provided revenue windfalls that allowed legislators to increase spending under the guise of fiscal conservatism. The essay concludes that the cooling economy of the 1990s will force a choice between new taxes or a genuine rollback of the bureaucratic state. [Government Policies and Capital Growth]: Witzky and Wubbels examine the crisis of insufficient capital formation in the U.S., contrasting American policies with the savings-oriented tax systems of Japan, West Germany, Austria, and France (specifically the Monory Act). They argue that U.S. tax policy is biased against savings and that inflation effectively turns capital gains taxes into confiscatory levies. The authors advocate for specific legislative measures like the Schulze Bill and the Family Savings Incentive Act to restore economic growth through market-based capital allocation. [Weapon of Destruction: The Assault On Capital]: Robert G. Anderson describes the 'political schizophrenia' of societies that demand prosperity while attacking the capital foundation required to produce it. He traces the history of U.S. economic growth from 1865 to 1914, attributing it to capital accumulation. He then details how modern policies—inflation, progressive taxation, inheritance taxes, and the welfare state—act as weapons of destruction against capital. Anderson warns that wage and price controls represent the final assault on the market economy and calls for a return to individual liberty. [Capital Punishment: The Impact of Inflation on Profits]: John Semmens analyzes how inflation distorts corporate financial reporting, leading to the taxation of 'phantom' profits. By examining the Dow Jones Industrial Average companies from 1967-1977, he demonstrates that while nominal profits appeared to rise, real after-tax returns to equity plummeted. He argues that this 'capital punishment' through taxation and inflation discourages investment, destroys the truth in financial reporting, and ultimately harms working people by reducing the returns on labor and job-creating capital. [Capital Consumption: The Erosion of Economic Substance]: Hans Sennholz provides a comprehensive analysis of how government policies lead to the net consumption of a nation's capital substance. He identifies progressive taxation, deficit spending, inflation, and excessive regulation (particularly environmental and labor union pressures) as the primary drivers of economic decline. Sennholz explains that capital consumption is often hidden by inflationary accounting but results in lower labor productivity and falling living standards. He concludes that only a return to the virtues of thrift, industry, and limited government can reverse this trend. [The Power to Tax Is the Power to Destroy]: Clarence B. Carson expands upon Chief Justice John Marshall's axiom from McCulloch v. Maryland, applying it to the relationship between government and individual citizens. He argues that all taxation is inherently destructive at the margin, inhibiting capital formation and business survival. Carson specifically identifies inflation and graduated income taxes as the most unjust forms of taxation. He proposes that taxes must be limited by the principle of consent and should never divest an owner of control over their creations, advocating for uniform rates and revenue-only purposes. [The Limits of Government Spending and the Power to Destroy]: This section argues that government spending must be strictly limited to maintaining peace and essential services requiring force. It posits that all limits on government action are effectively limits on taxation, and warns that the power to tax is inherently the power to destroy businesses, property, and creative energy. The author criticizes politicians for treating citizens like children by promising 'goodies' while remaining silent about the destructive costs of the taxes required to pay for them. [Sweden's Welfare State: A Paradise Lost]: Eric Brodin analyzes the decline of the Swedish welfare state, arguing that while it avoids state ownership of production, it exerts socialist control through the world's highest taxes. He details how the system disincentivizes work, leading to a massive underground barter economy, high absenteeism, and a bloated public sector that consumes 64 percent of the GNP. The essay concludes that the welfare state faces a crisis of confidence and moral decay, as the pursuit of security at the expense of freedom leads to economic stagnation and the loss of human dignity. [Public Finance: No Ways or Means]: John Semmens explores the inherent dilemmas of public finance, contrasting the voluntary, information-rich nature of private markets with the coercive and arbitrary nature of government funding. He argues that public finance can never be truly fair because it severs the link between service and payment, leading to economic distortions and resource misallocation. The author concludes that because taxation is fundamentally unfair and increasingly infeasible due to diminishing returns and political resistance, the only viable policy path is the privatization of public enterprises. [Index]: A comprehensive alphabetical index for the book 'Taxation and Confiscation', including authors, historical figures, economic concepts, and specific legislative acts discussed throughout the text. [Price List and About The Foundation for Economic Education]: Publication details, pricing for The Freeman Classics series, and a brief history of The Foundation for Economic Education (FEE). It highlights the roles of Leonard E. Read and Ludwig von Mises in the organization's development and mission to promote individual freedom and private property.
The front matter includes the title page, copyright information, and a detailed table of contents for 'Taxation and Confiscation'. The book is divided into four main sections: In Search of Social Justice, Instrument of Social Reform, Regulating Production, and Weapon of Destruction.
Read full textHans Sennholz introduces the volume by critiquing the shift from classical proportionate taxation to modern progressive taxation based on 'ability to pay'. He argues that the Deficit Reduction Act of 1993 and similar policies lead to the decapitalization of industry and lower living standards by consuming productive capital to fund government spending.
Read full textRidgway K. Foley, Jr. analyzes the philosophical basis of taxation, distinguishing between revenue raising, looting, and social engineering. He rejects 'voluntary taxation' as unfeasible and 'progressive taxation' as immoral, instead proposing a flat-rate proportional gross receipts tax. He also discusses the 'bracket creep' caused by inflation and critiques the use of fiat money as a hidden tax.
Read full textClarence B. Carson examines the 'general welfare' clause of the U.S. Constitution, arguing that its modern interpretation as a mandate for the welfare state is a linguistic and legal distortion. He traces the history of 'poor relief' versus 'welfare' and cites Madison and Monroe to demonstrate that the clause was intended as a restriction on the taxing power, not an open-ended grant of authority for federal spending.
Read full textGeorge C. Leef argues for a tax system based on the market principle of 'paying for what you get.' He critiques progressive taxation and the 'ability to pay' doctrine as forms of state-sanctioned plunder. Leef advocates for replacing most taxes with user fees and wealth-based assessments for core legal protections, while calling for the total elimination of transfer payments and social engineering through the tax code.
Read full textW. M. Curtiss discusses the evolution of taxation from simple revenue collection to a tool for fiscal management and social control. He highlights the rise of 'hidden taxes' such as withholding, social security, and inflation, which mask the true burden on citizens. Curtiss also critiques state lotteries as regressive 'voluntary' taxes and notes the futility of earmarking funds in a system where government spending is so pervasive.
Read full textConcludes the opening discussion on taxation by contrasting two fundamental theories of government: one that protects property and one that plunders it for social leveling. It argues that a clear understanding of government's proper, limited function simplifies the need for complex taxation theories.
Read full textWilliam Henry Chamberlin revives William Graham Sumner's 1883 concept of the 'Forgotten Man'—the industrious citizen who pays for government handouts to others while receiving none. The essay critiques the expansion of the welfare state, the 'Taxachusetts' model of rising state levies, and the erosion of savings through inflation and graduated income taxes. It calls for organized taxpayer resistance to check the 'bureaucratic nightmare' of modern government spending.
Read full textChamberlin examines the historical role of the middle class as the bulwark of liberty, tracing its roots through Locke and the American Revolution's focus on property rights. He warns that modern statism and the 'English disease' of chronic deficits and inflation are crushing the middle class between rising taxes and devalued currency. The essay argues that the shift from individual responsibility to government-guaranteed security is a backbreaking burden that threatens to destroy creative incentive.
Read full textJohn Hood deconstructs the myths surrounding state-level budget deficits, arguing that they are caused by profligate spending rather than federal aid cuts. He utilizes public choice theory to explain how special interest groups, particularly teacher and public employee unions, dominate the news-gathering process in state capitals to protect their subsidies. The essay highlights the disconnect between rising state employment and actual public needs, urging for better-informed taxpayer advocacy.
Read full textR.W. Boehm critiques the politicization of local school budgets in New Hampshire, viewing the democratic voting process as a tool for the redistribution of wealth. Drawing on Madisonian warnings about the tyranny of the masses and biblical principles of non-interference, he argues that schooling is not a proper function of government. He posits that replacing the coercive government monopoly with a free market would improve educational quality while lowering costs for taxpayers.
Read full textRobert Awenius revisits Sumner's 'Forgotten Man' in a mid-1980s context, applying the theory to modern welfare programs, agricultural subsidies, and corporate bailouts. He argues that 'social doctors' devise programs for the disadvantaged that ignore the crushing cumulative effect on the productive citizen. The essay emphasizes that the state's only duty to free men is to protect their power to use their own faculties for their own welfare, rather than attempting to redistribute success.
Read full textProfessor Robert Higgs provides a historical analysis of how the U.S. transitioned from a 'minimal state' in the 19th century to a modern leviathan. He introduces his theory that national crises (wars and the Great Depression) serve as catalysts for government expansion, as officials adopt cost-obscuring command-and-control policies. This 'ratchet effect' permanently alters the dominant ideology and the effective Constitution, leading to a thoroughly politicized economy dominated by special-interest predation.
Read full textRussell Shannon uses simple economic analogies, like book club offers and cereal coupons, to explain the law of diminishing marginal returns and its impact on taxation. He argues that progressive tax rates create a perverse incentive structure that discourages extra effort and drives production into the 'underground economy.' The essay supports the Laffer curve thesis, suggesting that reducing tax rates can actually increase total tax revenue by stimulating open economic activity.
Read full textGary North presents a sharp critique of Milton Friedman's educational voucher plan from a hardline voluntarist perspective. He argues that vouchers are a 'pseudo-market' scheme that fails to shift sovereignty back to parents because the state remains the source of funding and, therefore, the ultimate regulator. North warns that vouchers will lead to the 'HEW-ification' of private schools through state certification and guidelines, effectively acting as a tool for the state to swallow the last remaining independent educational alternatives.
Read full textThe author concludes that the state only adopts pseudo-market schemes, like school vouchers, when they can be used to enhance bureaucratic power and suppress private independence. He argues that vouchers are a 'seal of doom' for independent schools because they invite federal control and undermine the family unit. The section includes a bibliography of key works on bureaucracy and economic calculation by thinkers such as Mises, Hayek, and Friedman.
Read full textJohn Semmens argues against the practice of state legislatures 'exporting' taxes to non-residents (e.g., hotel and car rental taxes). He explains that while these taxes target non-voters, they create a competitive disadvantage that drives away tourists, businesses, and investment capital. The essay highlights that the U.S. Constitution prohibits federal export taxes for similar economic reasons, and warns that attempting to shift the tax burden leads to long-term economic stagnation.
Read full textJohn Hood challenges the narrative that the 1980s was a decade of government contraction. He provides data showing that state and local spending actually surged during this period, using New York and North Carolina as case studies. He argues that an expanding economy provided revenue windfalls that allowed legislators to increase spending under the guise of fiscal conservatism. The essay concludes that the cooling economy of the 1990s will force a choice between new taxes or a genuine rollback of the bureaucratic state.
Read full textWitzky and Wubbels examine the crisis of insufficient capital formation in the U.S., contrasting American policies with the savings-oriented tax systems of Japan, West Germany, Austria, and France (specifically the Monory Act). They argue that U.S. tax policy is biased against savings and that inflation effectively turns capital gains taxes into confiscatory levies. The authors advocate for specific legislative measures like the Schulze Bill and the Family Savings Incentive Act to restore economic growth through market-based capital allocation.
Read full textRobert G. Anderson describes the 'political schizophrenia' of societies that demand prosperity while attacking the capital foundation required to produce it. He traces the history of U.S. economic growth from 1865 to 1914, attributing it to capital accumulation. He then details how modern policies—inflation, progressive taxation, inheritance taxes, and the welfare state—act as weapons of destruction against capital. Anderson warns that wage and price controls represent the final assault on the market economy and calls for a return to individual liberty.
Read full textJohn Semmens analyzes how inflation distorts corporate financial reporting, leading to the taxation of 'phantom' profits. By examining the Dow Jones Industrial Average companies from 1967-1977, he demonstrates that while nominal profits appeared to rise, real after-tax returns to equity plummeted. He argues that this 'capital punishment' through taxation and inflation discourages investment, destroys the truth in financial reporting, and ultimately harms working people by reducing the returns on labor and job-creating capital.
Read full textHans Sennholz provides a comprehensive analysis of how government policies lead to the net consumption of a nation's capital substance. He identifies progressive taxation, deficit spending, inflation, and excessive regulation (particularly environmental and labor union pressures) as the primary drivers of economic decline. Sennholz explains that capital consumption is often hidden by inflationary accounting but results in lower labor productivity and falling living standards. He concludes that only a return to the virtues of thrift, industry, and limited government can reverse this trend.
Read full textClarence B. Carson expands upon Chief Justice John Marshall's axiom from McCulloch v. Maryland, applying it to the relationship between government and individual citizens. He argues that all taxation is inherently destructive at the margin, inhibiting capital formation and business survival. Carson specifically identifies inflation and graduated income taxes as the most unjust forms of taxation. He proposes that taxes must be limited by the principle of consent and should never divest an owner of control over their creations, advocating for uniform rates and revenue-only purposes.
Read full textThis section argues that government spending must be strictly limited to maintaining peace and essential services requiring force. It posits that all limits on government action are effectively limits on taxation, and warns that the power to tax is inherently the power to destroy businesses, property, and creative energy. The author criticizes politicians for treating citizens like children by promising 'goodies' while remaining silent about the destructive costs of the taxes required to pay for them.
Read full textEric Brodin analyzes the decline of the Swedish welfare state, arguing that while it avoids state ownership of production, it exerts socialist control through the world's highest taxes. He details how the system disincentivizes work, leading to a massive underground barter economy, high absenteeism, and a bloated public sector that consumes 64 percent of the GNP. The essay concludes that the welfare state faces a crisis of confidence and moral decay, as the pursuit of security at the expense of freedom leads to economic stagnation and the loss of human dignity.
Read full textJohn Semmens explores the inherent dilemmas of public finance, contrasting the voluntary, information-rich nature of private markets with the coercive and arbitrary nature of government funding. He argues that public finance can never be truly fair because it severs the link between service and payment, leading to economic distortions and resource misallocation. The author concludes that because taxation is fundamentally unfair and increasingly infeasible due to diminishing returns and political resistance, the only viable policy path is the privatization of public enterprises.
Read full textA comprehensive alphabetical index for the book 'Taxation and Confiscation', including authors, historical figures, economic concepts, and specific legislative acts discussed throughout the text.
Read full textPublication details, pricing for The Freeman Classics series, and a brief history of The Foundation for Economic Education (FEE). It highlights the roles of Leonard E. Read and Ludwig von Mises in the organization's development and mission to promote individual freedom and private property.
Read full text