Thursday, January 06, 2011

Casting Spells on Taxes

As a person with libertarian orientation, I maintain the view that every person is entitled to keep the vast majority of the money that he generates for his own use. Taking forward this argument, I am therefore in favor of reasonably sized government maintained on low debt and equally low taxation. Having come thus far, I still understand that political choices on fiscal policy are often difficult even if their results are sometimes completely predictable. 

I also understand that sometimes government faces the policy choice that requires raising taxation on an activity of one kind or another. All that notwithstanding, I am completely intrigued by this article in the Huffington Post reporting that witches in Romania are so livid due to the government's quest to tax their income that they have responded by casting (evil) spells against that government. One would say that absent a tax revolt, any response from the witches is excusable except that government officials seem to be adopting some defensive action to ensure that spells are warded off. 

To my mind, I suspect that given the low levels of income that a majority of the witches earn, the government of Romania will probably be unable to collect those taxes in a cost effective manner. However from a scientific perspective, it is a nice thing because it shows that some bureaucrats have looked long and hard at fiscal affairs and decided that witches should share in carrying the fiscal burden. Spells and curses be damned. On the other hand, the witches are disappointing because they should offer the government the opportunity to pull taxes from a  magic hat in exchange for being allowed a tax cut for all time. 

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