Libertarianism and initial conditions
Political ·Wednesday July 1, 2009 @ 01:04 EDT (link)
Libertarianism claims to want equality of opportunity (and not necessarily equality of outcomes, which socialism promotes), but frequently libertarians dismiss offhand the advantage or disadvantage of initial conditions: it's a lot easier to succeed with a rich family that pays for private education (including college), expensive hobbies, even buys one vehicles, and maintains a stable household than a poor family without stability (e.g. single parent). (This is not to say that rich households are necessarily stable and happy, nor the opposite.)
I think some rational libertarians would support a tax on initial conditions, if it was handled properly. A person's advantages at age of majority (let's say 18) can be examined and compared to the average, and a percentage of the difference taxed or refunded. To prevent huge bequests at age 18½, this could be increased by gifts too (or just tax such gifts at the same rate as if they'd been received at 18). This tax could be deferred for some reasons (in school, or un- or under-employment), and offset by negative circumstances (e.g. failed investments, natural disasters, injuries, although not by dissipation). Since there will be some people unable to pay but few if any that won't accept a handout, the tax rate would need to be slightly higher than the donation rate.
If payment can be deferred, perhaps receipt can be advanced: if it's fairly clear that a child is going to be disadvantaged, is going to fall far below the average when they'd be 18, they could receive some part of their charitable stipend in advance (re-payable, of course, if circumstances change).
This tax is somewhat justified, if any tax ever is, by taxing fortune, rather than hard work: by taxing luck, not what one makes of oneself. A "rags to riches" type will pay little, or even receive money.
How certain advantages are valued is non-trivial. To start, one can calculate a person's net worth: and then add the value of training over and above what is provided by the government (if we're not in Libertopia and all training is private). For example, if one's private school tuition is $8000 per annum but the local public schools spend $10,000 per student per year, that's not taxed: in fact we might even determine a loss. Stability of a family isn't a taxable asset, nor are family friends, but perhaps a parent's ability to purchase sporting equipment is.
Books finished: The Shack.
