The Adventures of Jonathan Gullible - Bastiat Institute

When taxes are too
high, people go
hungry.
Lao-tsu, Tao Te Ching
It is the highest
impertinence and
presumption in kings
and ministers, to
pretend to watch
over the economy
of private people ...
They are themselves,
always and without
any exception, the
greatest spendthrifts
in society ... If their
own extravagance
does not ruin the
state, that of their
subjects never will.
Adam Smith, Wealth
of Nations
Chapter 18 • Uncle Samta
stamps, registrations, sports affi liation, licenses,
etc, etc, etc.
A further portion of your money is used
for the expenses of people who try to work out
how to equalise everyone’s income and wealth.
The many departments of governments, each
taking a bit, will only be able to return a much
smaller portion to the citizens than they take.
The portion “returned” will be in the form of
ineffi cient public services implemented by
unwieldy government departments.
Sometimes a huge slice of this tax money is
spent on showcase projects (i.e. bridges, dams, or
recreational facilities) for the people in one area
at the expense of those in another area. While
the government proudly shows pictures of happy
recipients on TV and in newspapers, the offi cials
fail to mention the harm done to people in other
areas. These people are now poorer as they have
been forced to “donate” the money they would
have spent on stoves, shoes, and stews. To them,
the result is falling sales and lost jobs.
Before every election, political parties will
promise not to increase taxes, but no matter
which party is elected, they make more laws and
raise taxes to implement them. Even when they
say they are cutting taxes, they are only reducing
the rate of increase. The more they increase taxes
the more they undermine the economy. When
taxes increase, unemployment increases.
Simple taxes, such as the fl at tax, are less
complicated, and discourage bureaucrats from
manipulation and corruption. The best tax for
the reduction of bureaucratic controls is no tax.
Voluntary alternatives can be sought to achieve
this, e.g., cutting expenses, open competition,
privatisation, user fees, lotteries, voluntary
contributions, etc.
If the government spent less, we would all
pay less in taxes. A government consisting of
a minimum number of departments would cost
each citizen so little that citizens would likely
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