Tax is not theft: why the “it’s my money” argument is wrong

About this video

• Video Title: Tax is not theft: why the “it’s my money” argument is wrong
• Channel: Richard J Murphy
• Speakers: Richard J Murphy
• Duration: 15:41

Overview

This video challenges the common assertion that tax is theft, arguing instead that tax is a fundamental component of a functioning society and economy. The speaker explains that the state predates individual income and provides the necessary infrastructure, legal framework, and stability that enable people to earn a living. Tax is presented not as a confiscation of personal wealth, but as a reclaim of value created by societal structures and a crucial tool for macroeconomic management, including inflation control and behavioral shaping. The video advocates for a reframing of tax as a price of civilization and a democratic tool, rather than an adversarial imposition.

Key takeaways

• The "It's My Money" Argument is Misleading: The prevailing narrative that tax is theft is a manufactured belief, not a logical conclusion. It overlooks the foundational role of the state in creating the conditions for income generation.
• State Precedes Income: The government establishes the systems (like contract law, property rights, infrastructure, education, and currency) that allow individuals to work and earn income. Therefore, the state comes before personal income, not after.
• Tax as a Societal Foundation: Tax is not merely a payment; it's a mechanism that underpins the economy by creating demand for money, stabilizing inflation, shaping behavior (e.g., discouraging pollution or harmful activities), and funding public services.
• Tax and Economic Stability: Tax plays a vital role in managing demand, controlling inflation, and maintaining the value of currency, thus contributing to a stable economic environment.
• Tax as a Tool for Fairness and Democracy: Tax facilitates redistribution, supports social cohesion by moderating income inequality, and funds essential public services, all of which are crucial for a functioning democracy. The argument that tax is theft is seen as an assault on democracy, aiming to challenge collective action and empower private wealth.