Light taxes yield more, injustice ruins the state
A just government must tax lightly and respect its subjects' property and labour; that is also what makes the state rich, whereas injustice ruins it.
Light taxes encourage activity, which brings the state more; excessive taxes kill the will to work and ruin everything.
"Light taxes yield more, injustice ruins the state" is an argument by Ibn Khaldun (Muqaddima, I, 3, 36-41) on the question "What is a just society?" (answer: liberties). Its claim: A just government must tax lightly and respect its subjects' property and labour; that is also what makes the state rich, whereas injustice ruins it. According to AskPhilosophy's logic check (Z3 solver), the conclusion does follow from its 6 premises. AskPhilosophy presents 3 objections, 1 of them with a documented reply, and the original text behind each premise, checked word for word.
At the beginning of a dynasty, taxes are light and bring in a lot; at the end, they are heavy and bring in little. Ibn Khaldun, who served several princes himself, explains this paradox: what makes the state rich is the work of its subjects, and they work only if they hope to keep the fruit of their efforts. He then widens the idea to every injustice: confiscating, imposing forced labour, forcing merchants to buy dear and sell cheap. Six centuries later, the idea that beyond a certain rate taxes bring in less was called the "Laffer curve".
click a premise to reject it
Objections
3Each objection is a conversation: click to see who replies and where the debate stands.
MModern economists attacks premise 3The idea is right in principle, but everything depends on the rate. Most studies put the revenue-maximising rate well above usual tax levels, and many recent tax cuts, in the United States for instance, did not bring in more than they cost. Cutting taxes does not always raise state revenue.
no reply
The idea is right in principle, but everything depends on the rate. Most studies put the revenue-maximising rate well above usual tax levels, and many recent tax cuts, in the United States for instance, did not bring in more than they cost. Cutting taxes does not always raise state revenue.
MModern public economics attacks premise 2Taxation is not only a discouraging burden: it pays for roads, schools and security, which make people more productive. A state that taxes little can also grow poor by failing to spend on what keeps the economy alive.
Ibn Khaldoun replies
Taxation is not only a discouraging burden: it pays for roads, schools and security, which make people more productive. A state that taxes little can also grow poor by failing to spend on what keeps the economy alive.
Rousseau 1755 · attacks premise 4Defending everyone's property is not necessarily just: the laws that protect property were invented by the rich, who persuaded the poor to defend their own chains. A just society first corrects inequalities.
no reply
Defending everyone's property is not necessarily just: the laws that protect property were invented by the rich, who persuaded the poor to defend their own chains. A just society first corrects inequalities.