Economics Dictionary of ArgumentsHome
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| Poll tax: A poll tax (or head tax) in economics is a fixed, per-person tax levied on individuals, regardless of their income or wealth. Often considered regressive, it imposes the same tax burden on everyone, which can disproportionately affect lower-income individuals. Poll taxes were historically used to fund government services but have largely been replaced by income or property taxes. See also Taxation, Income tax, Excise tax._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Murray N. Rothbard on Poll Tax - Dictionary of Arguments
Rothbard III 921 Head tax/Poll tax/Rothbard: Taxation neutrality: Far from being "neutral" to the free market, then, a proportional income tax follows a principle which, if consistently applied, would eradicate the market economy and the entire monetary economy itself. Poll tax/head tax: It is clear, then, that equal taxation of everyone - the so-called "head tax" or "poll tax" - would be a far closer approach to the goal of neutrality. But even here, there are serious flaws in its neutrality, entirely apart from the ineluctable taxpayer-tax-consumer dichotomy. For one thing, goods and services on the free market are purchased only by those freely willing to obtain them at the market price. Since a tax is a compulsory levy rather than a free purchase, it can never be assumed that each and every member of society would, in a free market, pay this equal sum to the government. Rothbard III 922 Government services/VsHead tax/VsPoll tax: (…) let us assume that the head tax is being paid [for police protection]. The free-market rule is that equal prices are paid for equal services; but what, here, is an "equal service"? Surely, the service of police protection is of far greater magnitude in an urban crime center than it is in some sleepy backwater, where crime is rare. Police protection will certainly cost more in the crime-ridden area; hence, if it were supplied on the market, the price paid there would be higher than in the backwater. Furthermore, a person under particular threat of crime, and who might require greater surveillance, would have to pay a higher police fee. A uniform tax would be below market price in the dangerous areas and above it in the peaceful areas. To approach neutrality, then, a tax would have to vary in accordance with the costs of services and not be uniform.(1) This is the neglected cost principle of taxation. Benefit principle/taxation/Rothbard: Still another attempt at neutral taxation is the benefit principle, which states that a tax should be levied equal to the benefit which the individuals receive from the government service. VsBenefit principle: Obviously, there would be no such welfare or any other subsidy payments if the benefit principle were maintained. Service: Even if we again confine the discussion to services like police protection, grave flaws still remain. Rothbard III 923 Measurements: A fatal problem is that we cannot measure benefits or even know whether they exist. As in the head tax and cost principles, there is here no free market where people can demonstrate that they are receiving a benefit from the exchange greater than the value of the goods they surrender. In fact, since taxes are levied by coercion, it is clear that people's benefits from government are considerably less than the amount that they are required to pay, since, if left free, they would contribute less to government. The "benefit," then, is simply assumed arbitrarily by government offcials. >Cost Principle/Rothbard, >Neutral taxation/Economic theories, >Neutral taxation/Rothbard, >Service/Rothbard, >Bureaucracy/Rothbard, >Benefit principle/Rothbard, >Progressive tax/Rothbard, >Excess Profits Tax/Rothbard. 1. We are not here conceding that "costs" determine "prices." The general array of final prices determines the general array of cost prices, but then the viability of firms is determined by whether the price that people will pay for their particular products will be enough to cover the costs, which are determined throughout the market._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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