REAGAN: Well, let me tell you where my doubts are there. I am very critical of the income tax–the progressive features and the complications of it–it’s the one instance in your whole fiscal experience in life in which you figure out what you owe and government reserves the right to come back and tell you your figures are wrong. If you’re going to have a tax the people should know what the tax is and the government should be able to tell them without the people having to go to the expense of figuring it out themselves.
On the other hand, I have always felt that taxing income is probably as fair a method of raising revenue for government as any. Let’s take a simple case. Suppose 100 of us were shipwrecked on an island and we knew there was little chance of release and we established a community to get along–to survive there. I n a sense we set up a government. What you’d probably do is ask each individual to dedicate a certain amount of his time to such things as standing guard or hunting and fishing to keep the people alive and providing fresh water and so forth, so you’d probably each one contribute a certain amount of service to the community. You’d basically be on your own except for X amount of time. Well, this in a sense is what you do with your income tax.
REASON: Of course, if you’re talking about starting from scratch–the shipwrecked people on the island– you’re really talking about a voluntary approach, aren’t you–as against taxation?
REAGAN: Well, we’re inclined to think that our government here is a voluntary approach and that we’ve set up a government to perform certain things, such as the national protection, etc.
REASON: Aren’t we deluding ourselves to talk in terms of consent, though? When we talk about taxation, aren’t we really dealing with force and coercion and nothing less than that?
REAGAN: Well, government’s only weapons are force and coercion and that’s why we shouldn’t let it get out of hand. And that’s what the founding fathers had in mind with the Constitution, that you don’t let it get out of hand.
But you say voluntary on the island. Let’s take a single thing. Let’s say that there was some force on the island, whether it’s hostiles or whether it was an animal, that represented a threat and required round he-clock guard duty for the safety of the community. Now I’m sure it would be voluntary but you get together and you say look, we’re all going to have to take turns guarding. Now what do you think would happen in that community if some individual said "Not me; I won’t stand guard." Well, I think the community would expel him and say "Well, we’re not going to guard you." So voluntarism does get into a kind of force and coercion where there is a legitimate need for it.
REASON: You said earlier that government doesn’t exist to protect people from themselves. Let’s take the desert island shipwreck situation. Would you be in favor of any laws against gambling in the shipwrecked island situation?
REAGAN: You’ve named an issue that is one of the most difficult for me to reconcile. I know this gets into the whole area of the sin laws and here again I think you’re in one of the grey areas. There’s one side of me that says I know this is protecting us from ourselves; there’s another side of me, however, that says you can make the case that it does get into an area in which we are protecting us from each other.
I cannot go along with the libertarian philosophy that says that all of the sin laws can be ruled out as simply trying to protect us from ourselves. You car take the case of the father who gambles his money away and thus leaves his family dependent on the re’ of us. You can take surrounding areas–the necessity for protection against dishonest gambling–which requires added government duties and obligations–
REASON: But isn’t it really very selective law enforcement when it comes to nonvictim crime areas?
REAGAN: Well, now, you know the nonvictim crimes. Here again I think you’re in a grey area that requires certainly more study than I’ve given it. Prostitution has been listed as a nonvictim crime. Well, is anyone naive enough to believe that prostitution just depends on willing employees coming in and saying that’s the occupation they want to practice? It doesn’t.
REASON: Well, it partly depends on the options. There are a lot of jobs that people might find distasteful in a free market. I suppose that if you work in a paint shop and you’re breathing paint fumes all day, it might not be a very desirable job either.
REAGAN: Yes. But get into the seamy side. Talk to law enforcement people about the seamy side of how the recruiting is done, including what in an earlier day was called the white slave traffic–and you will find that the recruiting for prostitution is not one of just taking an ad in the paper and saying come be a prostitute and letting someone walk in willingly.
REASON: Yes, but, Governor, we really haven’t lived in a time when prostitution has been decriminalized.
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|10.25.09 @ 11:01PM|#
I like Reagan, but I wonder sometimes how different and how better the world might be had he read Atlas Shrugged. Oh if only!
|11.2.09 @ 7:11PM|#
I have a feeling he did. Google Reagan and "Red Hen" - he had his own mini-fable version of Atlas Shrugged that he told many times.
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|2.6.11 @ 2:51PM|#
Remember kids, all right thinking people in the 1970s thought Reagan was stupid. Just a senile old man and a dumb actor. People said as bad or worse things about Reagan than they say today about Sarah Palin. He was absolutely demonized.
You read that interview and you may not agree with everything. But it is remarkable how smart the guy was and how well thoughtout his views were. And moreover how much higher of a level he spoke at than politicians of today. Can you imagine Nancy Pelosi or McCAin or our alledged Willie Coyote super genius in the Whitehouse giving an interview that plain spoken and well thought out? I can't.
|2.6.11 @ 5:39PM|#
I was just thinking along these precise lines while reading this.
While I'm not a huge Reagan fan, there is simply no comparison between him and Sarah Palin. It's laughable to consider her giving an off-the-cuff interview half this intelligent, knowledgeable, and clear.
Yeah, a formidable individual whatever your opinion of his politics or policies.
DDavis|2.7.11 @ 5:42PM|#
That's what occurred to me too.
Seeing Reagan refer to the views of Lenin was an eye opener. Seeing the references to Von Mises and Hayek and Bastiat were less surprising in terms of content, but a little surprising in terms of intellectualism.
I had always considered Reagan smart, but thought that he had just worked out a decent political philosophy on his own over a period of years.
Dickhead|2.7.11 @ 8:27PM|#
I know all are too lazy to question what doesn't agree with us. But what of the Spanish American War? Did you know a powerful politician overruled an army leader (who wanted to just kill local animals for protein as armies had always done) to direct business to hometown Chicago meat companies? So did the free market cause that problem or large government cronyism? I always ask persons who think the government FDA protects us (actually it protects the producers) why would a private company, that has no leverage but the quality of its product, intentionally harm its customers? In a real free market, a company harming its customers no longer has customers. Instead the FDA promotes shoddy quality.
|10.26.11 @ 11:22AM|#
We have a core problem in United States the Withholding /Compliance / Lobbying System as it effectively runs our country. A repeal of the 16th must happen and the Fair Tax Act is a painless way of doing that.
Glenn