[H]aving one’s house auctioned off for nonpayment of taxes is more common than house fires, and that it entails just as much of an effective loss of your house as having it burn down. The modal statist alternative, as practiced in most places, is to fund fire services with mandatory taxes — and unless taxation is backed in the last resort by punitive measures almost as harsh as having your house burn down, it’s prone to exactly the same moral hazard problems as a voluntary payment system.
:: posted by buermann @ 2010-10-13 12:21:11 CST |
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