Thought Experiment in Statism

Thought Experiment in Statism
written by Ilana Mercer on 07.24.11 @ 9:53 pm

Treasury Secretary Tim Geithner told FoxNews anchor Chris Wallace repeatedly that to avoid the debt precipice, "tax reform that would generate revenue" ["now there's a nice word for taxes"] must be considered. The "revenue we're going to get through tax reform": that's how Geithner put it second time around, during the Sunday interview.

Let us assume, for a moment (as Secretary Geithner expects us to), that the solution to the deb is paying the people who incurred the debt more money; that the solution to the deb is seizing private property (through taxes) and placing it in communal ownership (state bureaucracies), where resources are never allocated efficiently and are always squandered.

Assuming all the above, do you have any guarantees that the money stuffed down the maw of the Federal Frankenstein will actually go to pay down the debt? Of course you don't. Of course it won't.

Money extracted from us by the Feds is fungible. Any additional revenues the Feds receive via taxes they will use to plunge private property owners deeper into debt.