It’s a good question.
In many kingdoms of the ancient world, taxes were a type of rent. The king owned all the land and everything in it. Subjects paid taxes to use the land and its resources. The king, in turn, raised an army to protect his subjects and invested in public works. It was a simple formula, but one sufficient to sustain a basic legal system and a generally free market for exchange.
Continue reading “If Deficits Don’t Matter, Why Bother with Taxes?”