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Mises Economics Blog

Taxes and Distortions

June 9, 2008 10:41 PM by Jim Fedako (Archive)

Taxes distort more than the economy, they distort all aspects of human action. Consider the young man at my door yesterday.

As happens every so often, someone arrives at my door to sell candy for some never-quite-identified nonprofit organization. Now, I'm after the candy, the cause -- legit or otherwise -- is not my concern.

I heard the knock and opened. Before me stood this young man with a large box of candy and the identification card I know so well.

After the young man finished his pitch, I asked the price of the candy. Taken aback, he replied, "Oh, we don't sell candy. But, for an $8 donation, we offer one of these party bags of candy as a token of our appreciation." Hmmm.

OK, so with a wink and a nudge we align the verbal aspects of our trade in a manner that does not result in sales tax. I donate; he appreciates. With that, I bid him farewell, closed the door, and opened the bag of ten, individual-sized M&M packages. A sweet afternoon indeed.

Bookmark/Share | Comments (6)

Comments (6)

  • Fred Furash

    Hmm, this is a good idea. I'll be doing that too lol.

    Published: June 10, 2008 6:57 AM

  • Keith

    It reminds me of the high school graduation requirement to "volunteer" for so many hours that you'll find in many government school systems. If somebody is required to "volunteer", then what are you actually teaching?

    Published: June 10, 2008 6:57 AM

  • ted wall

    When governments tax property be it state or federal, then, there are no real property owners in that state or country... everything reverts back to the state when taxes cant be paid.

    Published: June 10, 2008 10:48 AM

  • scineram

    Jim Fedako, Agorist.

    Published: June 10, 2008 12:05 PM

  • Bob Wilko

    We ran a charity event once by the river... realized too late that we shouldn't be selling liquor without a license... and did something a little similar to the above (after a $2 donation, my new friend was happy to share one of his beers with me)

    Published: June 10, 2008 4:02 PM

  • Speedmaster

    I wonder if I could work out an agreement with my employer like that? ;-)

    Published: June 11, 2008 8:16 AM

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