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“Taxation is theft” is a popular slogan among libertarians. It captures the sentiment that we should hold the state to the same moral standards as non-state actors.

Why Taxation Might Be a Form of Theft

Imagine that I have founded a charity organization that helps the poor.1 But not enough people are voluntarily contributing to my charity, so many of the poor remain hungry. I decide to solve the problem by approaching well-off people on the street, pointing a gun at them, and demanding their money. I funnel the money into my charity, and the poor are fed and clothed at last.

In this scenario, I would be called a thief. Why? The answer seems to be: because I am taking other people’s property without their consent. The italicized phrase just seems to be what “theft” means. “Taking without consent” includes taking by means of a threat of force issued against other people, as in this example. This fact is not altered by what I do with the money after taking it. You wouldn’t say, “Oh, you gave the money to the poor? In that case, taking people’s property without consent wasn’t theft after all.” No; you might claim that it was a socially beneficial theft, but it was still a theft.

Now compare the case of taxation. When the government “taxes” citizens, what this means is that the government demands money from each citizen, under a threat of force: if you do not pay, armed agents hired by the government will take you away and lock you in a cage. This looks like about as clear a case as any of taking people’s property without consent. So the government is a thief. This conclusion is not changed by the fact that the government uses the money for a good cause (if it does so). That might make taxation a socially beneficial kind of theft, but it is still theft.