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Wednesday, July 08, 2009

An experiment in voluntary taxation could be Michael Jackson’s most valuable legacy

Los Angeles city officials are looking for ways to pay for the cost of Michael Jackson’s public memorial service, estimated at $4 million.

According to a report by msnbc, the city has set up a web site urging fans to make voluntary, tax-deductible donations to help cover the costs.

Right behind staying out of the memorial service business altogether, this is a great solution for paying this I.O.U., which includes $50,000 for lunches for the on-duty cops being paid overtime.

In fact, while L.A. officials are not likely to give up on coercive taxation, this donation model could be more broadly used to finance non-essential government services. Under this model, unpopular government services that don’t get public support would be scraped, or paid for out of general revenue if the service is deemed essential. This would allow taxpayers to express their preferences among government programs.

Going further, 100 per cent tax deductable donations to registered non-profit organizations would be a great way to gradually return welfare and philanthropic activities to the private sector. Taxpayers could cover their tax bill by either sending their money to the local government, or to the registered charity of their choice.

The idea needs some fine tuning, and might be costly to impliment, but I'd like to see more governments attempt to raise funds voluntarily, and push services into the private sector by allowing charitable donations to substitute for taxes owed.

Posted by Matthew Johnston

Posted by westernstandard on July 8, 2009 | Permalink

Comments

"100 per cent tax deductable donations to registered non-profit organizations would be a great way to gradually return welfare and philanthropic activities to the private sector."

You haven't thought this through and it's not a new idea. One, bogus charities will spring up. Two, nobody will willingly donate to "unsexy" essential services like roads and sewers and jails. There are other reasons beyond the scope of this comment.

"Right behind staying out of the memorial service business altogether"

Jeepers. It's a huge public event, even in the most minimal of states there are costs like policing associated with large gatherings. Yes, I don't like it either when cops use these sorts of things for easy overtime but in the adult world, these things cost.

Talk about reinventing the wheel. What a fantasy world you fake libertarians live in, a complete abstraction wholly unconnected to reality.

Posted by: Marc Lepine | 2009-07-08 7:21:21 PM


If those are your only objections, Marc, they are all easily addressed. But I've got to go for dinner. I'll get back to you.

Posted by: Matthew Johnston | 2009-07-08 7:46:09 PM


I have personally observed people in my electoral area state that they want to see such-and-such being provided until they are told it is possible to provide it as long as the users paid for it. Guess what? Suddenly these same people decide they do not really want it after all. If this was applied to most things, it would quickly put an end to all the clamouring that government should do this or provide that. So Matthew's proposal is not without merit.

Posted by: Alain | 2009-07-08 7:47:22 PM


@ Marc Lepine

//One, bogus charities will spring up.//

Reputation can be checked with more ease than in the past using web resources.

//Two, nobody will willingly donate to "unsexy" essential services like roads and sewers and jails. //

Roads and sewers can be handled with user fees.

//It's a huge public event, even in the most minimal of states there are costs like policing associated with large gatherings. //

The event organizers should handle their own security.

//What a fantasy world you fake libertarians live in,//

It's a nice place to be, come join us :)

Posted by: Scott Carnegie | 2009-07-08 9:39:13 PM


I'd rather live in Libertarian Land than what we have now, I can darn tell ya that

Posted by: GeronL | 2009-07-09 3:30:02 AM



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