The Case for Abolishing Federal Taxation

Abolishing federal taxation would dramatically alter the incentives that increase spending and taxing. State taxation would: 1) discourage wasteful Keynesian policies aimed at fine-tuning the economy, 2) encourage federal authorities to spend tax money only on activities providing national benefits, 3) reduce incentives for the rent-seeking that leads to wasteful spending at all government levels, 4) convert each state's incentive to free ride off other states' tax payments into an incentive to replace wasteful outlays with productive spending, 5) intensify competition between states and minimize the dead-weight loss of taxation, and 6) reduce the social divisiveness of political plunder.