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Kmichaelwilson
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Increasingly I believe that modern taxation has two primary functions, 1) to promote impoverishment and 2) to alienate individuals from the government. I think that the second function might actually be much more critical.
After all, it makes little sense for a government that can issue its own currency directly to demand that currency indirectly individual-by-individual. This is one of the silent scandals, I think, of the modern era. The decision post-gold-standard era to retain traditional taxation is a neoliberal strategy based on real-political understanding of human psychology (cognitive biases and otherwise.)
The strategy, basically? Use macro-economic policy to strain household budgets. Use traditional taxation both to strain further those budgets and to create a negative association between government and one's personal well-being. Then propose a deal: eliminate elements of personal taxation in exchange for eliminating social programs. Characterize the government as a 'strained household' (the old 'switcheroo') that has been 'spending outside of its means,' etc. etc.
Ideology as cognitive bias
In this paper (pdf), Jon Wisman makes an important point: Once control of the state was in principle democratized by the ballot box, the fortunes of the elite came to depend solely upon controlling ideology. This reminds me of Steven Lukes' "third dimension" of power; rulers can exercise power...
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Jan 16, 2013
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