What if the Government Had to Earn Your Money? This tri-fold can help you spark conversation about the Tax Revolution at any event.
Articles on Voluntary Taxation
Alexander Nicholson, CEO of government-affairs firm SRB Strategic, argues that we should start thinking about Tax Expenditure Checkoffs, like the $3 FEC checkoff, for non-essential government programs.
Ian Ayres and Barry Nalebuff, professors at Yale Law School and the Yale School of Management, propose a voluntary gasoline tax to reduce our dependence on foreign oil.
Boston.com writer Rebecca Tuhus-Dubrow on the surprising potential of an unlikely plan: voluntary taxation.
“Why not try an experiment in which the tax system is made truly voluntary?”, asks Donald J. Luskin, Chief Investment Officer of Trend Macrolytics LLC and former vice chairman of Barclays Global Investors.
The Mayor of Bogota’, Columbia, asks his citizens to voluntarily pay more in taxes for city services. You might be surprised at what happens next.
Abstract: Giving to private charities is commonplace, and the chance to direct one’s gift is a standard fundraising strategy. But voluntary donations to government organizations are less widely known, and the impact of the opportunity to direct a gift is unexplored. We investigate the effect of directed giving on voluntary contributions to government organizations using a “real donation” lab experiment.
We compare giving to the US federal general revenue fund with directed giving to particular government organizations. Directed giving more than doubles both the likelihood of giving and the size of contributions, indicating that individuals are responsive to the opportunity to direct their gifts in the government context. Our results suggest that the revenue-raising potential of directed voluntary gifts to government may be underutilized.
Abstract: This paper presents original research and theory that challenges the assumption that, with the advent of universal suffrage, democracy has reached an evolutionary limit. To explore one possible avenue for the future development of democracy, this paper studies a potential link between taxation and individual democratic power. The paper reviews the two most significant principles of just taxation – the “ability to pay” principle and the “benefit” principle – and introduces a third principle, the “voluntary principle” of taxation.
This “three-fold” theory of taxation purports to resolve the ideological inconsistencies that exist within and between the two traditional principles of taxation and, at the same time, reconcile the historical tension between labor and capital through a new, more highly evolved model of democracy. The paper concludes with a call for additional research about the role of taxation in the future of democracy
Our “Voluntary” Tax System
J.T. Manhire, former U.S. Treasury Department Employee, traces the origins of the IRS’s use of the word “voluntary” compliance.