Sunday, January 23, 2011

What services do we get with Don Boudreaux's flat tax?

He never says, but clearly he implies we get the minimum common government service, probably property protection of the household.

Intellectual property protection is not included, nor are the roadways in business disticts policed.  Neither are large factories and office buildings protected.  The inland household would find the Coast Guard unnecessary.

So how does the business district acquire property protection?  Self organize a special corporation, hire the service from prvate contractors.  The business district is stuck, they cannot form a separate government to provide the common business serviices, for that might incur an additional tax applied to commercial districts. The failure to tax leaves the business man at risk for theft of all sorts, his property is no longer defined.

Somethng is wrong with this formula, and we know that Don would not tax the middle class to provide special property protection for the comercial class, that would be redistribution. I could pose as Don Boudreaux on the web and he has no recourse because the median household doesn't need that service.

Why is none of this explained in Don's postings at Cafe Hayak, and we know Hayak would not have households providing government services to businesses.

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