Top 9 Reasons Non-Tax Sources are the Best (10 is overrated)
Updated: Feb 7
I thought I would change things up a bit. Since lots of people like lists, here are the top nine reasons non-tax alternatives are the best choice for government revenue:
1. Incentive. Non-tax revenue usually comes with incentive other than government services -- more of a reason to pay. They provide products, services, and experiences, and sometimes even interest on what was paid. They can help lift entrepreneurs off the ground, create more savings for the government (and the payer), improve the environment, and punish law breakers. They do more than just give you government services that might not ever be used or needed.
2. No Complication. Paying non-tax revenue is straight forward. You pay it when you pay for those items listed in #2. There is no unnecessarily complex forms to understand and fill out. There are no myriad of rules and regulations to know about that restrict or allow certain activities and tax differently depending on which action is taken.
3. No Compliance Cost. Because there are no hoards of forms to fill out, there is no reason by buy software in order to get the job done. There is no reason to hire someone who can do this work for you because it's too difficult to understand. The cost of non-tax revenue is the price paid, alone. With taxes, it cost money just to have them figured out and to pay for them. Non-tax revenue doesn't create that cost.
4. No Non-Compliance Cost. Since non-tax alternatives are not forced, there is no cost to track those who do not pay them and keep track of how much is owed, or cost associated with jailing those who are caught and do not pay. In order to do any of these things, it costs a government money. That equals more need for government revenue -- more taxation, when that is the method most relied on. Non-tax revenue doesn't create that cost, either.
5. No Division. Non-tax alternatives don't rely on income levels or segments of society (same thing) to indicate how much you owe the government. This inevitably fuels division throughout society. With non-tax alternatives, people aren't divided into different levels of cash crops.
6. Empowerment. When you control more of the money you give to government, you control more of your government. Done so at the individual level ensures you don't have too much power (like a politician), and done so as a society ensures that government doesn't become more powerful than the people.
7. Unlimited Funding. The amount of non-tax sources available are really only limited by the imagination. So are taxes, but when they are created, they must come with much debate because they will be forced upon citizenry. When a new non-tax source is created, it can be readily put into place without apprehension or much deliberation because it comes with choice. It just becomes available. Taxation does not enjoy such a luxury. This creates more opportunity for government funding.
8. Less Political Games. No government beholden to the funding of society will force stall tactics of government services when squabbling politicians can't agree. If they do, funding would disappear as a result of the people who do not approve. Politicians would do a better job at finding a way to come to an agreement so they can continue being paid.
9. Evolution. We move beyond the usual stalemate of politics by addressing the concerns of both the Left and Right. Government receives funding and programs happen, but without forcing everyone to pay for programs they don't want in the quantity they don't want. If people want more of what government is doing, they pay more. If they want less, they pay less. Politicians who want to keep their job react accordingly, instead of being replaced with a replica supplied with endless funding.