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Taxes Are a Sunk Cost

September 27, 2007

I don’t care what the government does with my tax-dollars. As we all know taxes are just a transfer of money, they don’t create any wealth. Quite to the contrary they decrease economic transactions. So, in fact, one could argue that they destroy wealth. But more importantly, taxes are a tool for government to stay at the center of everybody’s attention. The moment we start yelling “where are our tax-dollars going?”, the moment we start caring about it as if we were purchasing or investing, that’s when we loose and statism wins. Government can then say: “See! People do care about government programs! look how concerned they are about their tax-dollars!”.

When I was a kid I had my fair share of dealings with older and stronger bullies. One lesson I learned from that experience is that the more you respond to provocation the more satisfaction the bullies get out of torturing you, the more outraged you get, the more they’ve accomplished their goal. Of course I was never able to keep my cool, but I never let it affect my overall behavior and I mostly pretended that I didn’t care. Eventually, the bullies let off and some even came to respect me. When will tax-payers start to get some respect?

From → Government, Taxes

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