Pick any chapter in How to Argue, and write 250 words on this: “How could voluntary arrangements solve this problem if the state did not impose the politics of plunder?”
I chose the chapter “Tax the rich to help the poor!” The main reason I chose this chapter is because it’s a topic widely discussed by everyone. Tax the rich to help the poor means a redistribution of taxes to help reduce inequality and fund the public services by increasing taxes on high income earners. But I do not think this is very fair.
In the beginning of this chapter the author talks about how raising taxes on the “rich” does not actually increase government revenue. This is because most tax money comes from lower and middle class income brackets. He continues to state that extremely high tax rates can discourage investments and economic activity. Because of this many people may avoid risky projects if too much of the profit is taken in taxes. The author uses a great example of this. The story is about a businessman who refused to invest in a large industrial project because a 91% tax rate would have made the return too small to justify the risk. As a result, the plant was never built.
His main point is that high tax rates on the wealthy can discourage investment and job creation, which may end up harming the economy and even reducing total tax revenue, especially for people who are unemployed or in poorer communities.
But this is only half of the prompt, the question was how could voluntary arrangements solve the problem. I think a great voluntary arrangement could be a charity or mutual aid. Private donations, religious organizations, nonprofits, and community funds are already providing welfare without government force.
Some great charities already operate without government funding. One of the biggest has to be Doctors Without Borders. They refuse money from any form of government. One more great one without any government help is Midwest Food Bank. They are the largest independent food bank in the history of the U.S. by proceeds. What is great about these charities is the non political part of it they keep humanitarian aid away from political views.
This form of helping people who struggle can exist without over taxation. Organizations like Doctors Without Borders and Midwest Food Bank show us that they can be organized without government intervention. These groups rely on donations and community support. This system could allow aid to be less political. In a system like this we will not need state redistribution of taxes.
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