The Myth of Ownership : Taxes and Justice

## Abstract In a capitalist economy, taxes are the most significant instrument by which the political system can put into practice a conception of economic justice. But conventional ideas about what constitutes tax fairness--found in the vigorous debates about tax policy going on in political and public policy circles, in economics and law--are misguided. In particular, the emphasis on distributing the tax burden relative to pretax income is a fundamental mistake. Taxation does not take from people what they already own. Property rights are the product of a set of laws and conventions, of which the tax system forms a central part, so the fairness of taxes can’t be evaluated by their impact on preexisting entitlements. Pretax income has no independent moral significance. Standards of justice should be applied not to the distribution of tax burdens but to the operation and results of the entire framework of economic institutions. The result is an entirely different understanding of a host of controversial issues, such as the estate tax, the tax treatment of marriage, “flat” versus progressive taxes, consumption versus income taxes, tax cuts for the wealthy, and negative income taxes for the poor. Taking As A Guiding Principle The Conventional Nature Of Private Property, Murphy And Nagel Show How Taxes Can Only Be Evaluated As Part Of The Overall System Of Property Rights That They Help To Create. Justice Or Injustice In Taxation, They Argue, Can Only Mean Justice Or Injustice In The System Of Property Rights And Entitlements That Result From A Particular Regime. Taking Up Ethical Issues About Individual Liberty, Interpersonal Obligation, And Both Collective And Personal Responsibility, Murphy And Nagel Force Us To Reconsider How Our Tax Policy Shapes Our System Of Property Rights. [publisher Web Site]. Introduction -- Traditional Criteria Of Tax Equity -- Economic Justice In Political Theory -- Redistribution And Public Provision -- The Tax Base -- Progressivity -- Inheritance -- Tax Discrimination -- Conclusion: Politics. Liam Murphy & Thomas Nagel. Includes Bibliographical References (p. 209-219) And Index. In a capitalist economy, taxes are the most important instrument by which the political system puts into practice a conception of economic and distributive justice. Taxes arouse strong passions, fueled not only by conflicts of economic self-interest, but by conflicting ideas of fairness. Taking as a guiding principle the conventional nature of private property, Murphy and Nagel show how taxes can only be evaluated as part of the overall system of property rights that they help to create. Justice or injustice in taxation, they argue, can only mean justice or injustice in the system of property rights and entitlements that result from a particular regime. Taking up ethical issues about individual liberty, interpersonal obligation, and both collective and personal responsibility, Murphy and Nagel force us to reconsider how our tax policy shapes our system of property rights. BLURB: In a capitalist economy, taxes are more than a method of payment for government and public services. They are the most significant instrument by which the political system puts into practice a conception of economic justice. Yet there has been little effort to bring together important recent philosophical work on justice with vigorous debates about tax policy going on in national politics and public circles, in economics and law. *The Myth of Ownership* bridges this gap, offering the first book to explore tax policy from the standpoint of contemporary moral and political philosophy. In a capitalist economy, taxes are the most important instrument by which the political system puts into practice a conception of economic or distributive justice. This book aims to bring together the philosophical discussions of justice with the complex debates about tax policy that go on in practical politics, in economics, and in law In a capitalist economy, taxes are the most important instrument by which the political system puts into practice a conception of economic or distributive justice. This book unites philosophical discussion of justice with debates on tax policy It has been recognized for a long time that tax policy must take account of political morality, or justice.