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In an article entitled “Income tax: end of the scale freeze in 2014”, the French newspaper Le Monde comments about the new decision.  The illogic of taxation has always been with us and it is worth studying it.

Up to 2011 tax brackets in France were indexed by inflation. This is, the higher the inflation the less you have to pay. However, in 2011 and 2013 this indexation was frozen. As a consequence, about 400.000 French citizens became taxpayers overnight to their approximate cost of more than one billion Euros.

It would now seem that this freezing will be removed, for which there will be less taxes collected. No problem, the government is short only 6 billion Euros, not to mention the upcoming and expensive pension reform.

But that’s OK, because the VAT (Value Added Tax) and standard rates of taxation will increase in 2014.

This is all possible because they have a plan: to decelerate in 2014 and stabilize in 2015. They are engaged to find the best balance between levies, budget savings and support growth. You will just have to trust them.


We need money. We will get it from you. We will make this process so complicated that nobody will understand it. We will keep wasting your money in things that do not work and then coming back for more. Get used to it.

The truth is that taxation is nothing more than theft. Plain and simple. Everything else is just circus to distract you. It’s the basic bump-and-grab. A person distracts you by bumping into you meanwhile a second person steals your wallet.

This is done by design. If taxation would be “fair” (we are sure there is no such thing but let’s assume it exists for argument sake) then it would be transparent and logical. Precisely because it is not “fair” it must be obscure.

The illogic of taxation is there to prevent people from reasoning taxation. To keep it obscure. It is there by design.

Let’s take for example the fact that it is pretty much impossible for the average Alphonse to calculate how will these changes impact his taxes. Will they go up or down? Actually, we are not even sure a PhD in Economics could even estimate those changes.

And how about the mythical balance between levies, budget savings and support growth. What exactly is the numerical meaning of this? How do you determine objectively, how much taxation do you add, how much do you cut and how much growth do you want? The answer is that it is not possible.

Not only it is not possible but in addition, even if it could be done, why would one wish to control the growth level? Economic growth (as long as it is real) is good. But then again, in current Political Systems growth is managed (this is, manipulated). Why would they manage growth? Because growth is not real, it is fueled by printed money which translates, into inflation. So, in order to have limited inflation, they need to limit growth.


We don’t have a clue what it is that we are doing. We only know that we want to keep spending what we don’t have, hence we need to keep robbing people (taxing) and printing money. In order to achieve that, we need to limit growth to a level that limits inflation so that most people tolerate it.

In an Absolute Austro-Libertarian system there are no taxes. Period. There may be fees, but each fee is determined by a contract and you may accept it or may reject it. It’s up to you.

In an Absolute Austro-Libertarian system there is no need to limit growth because there is no inflation. Actually, there is dis-inflation.

In an Absolute Austro-Libertarian system there is no need to find balance between levies, budget savings and support growth because the first does not exist, the second is private and the third is determined by a truly free market.

At the end of the day, it does not matter if it is France, Russia, South Africa, Australia or Uruguay who does it. Taxation is all the same: thievery and sleight of hand.

Note: please see the Glossary if you are unfamiliar with certain words.



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