William F. Shughart Ii - Taxing Choice: The Predatory Politics of Fiscal Discrimination

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TAXING
CHOICE

Independent Studies in Political Economy

THE ACADEMY IN CRISIS

The Political Economy of Higher Education

Edited by John W. Sommer

Foreword by Nathan Glazer

MONEY AND THE NATION STATE

The Financial Revolution, Government,

and the World Monetary System

Edited by Kevin Dowd and

Richard Timber lake

PRIVATE RIGHTS & PUBLIC ILLUSIONS

Tibor R. Machan

Foreword by Nicholas Rescher

TAXING CHOICE

The Predatory Politics of

Fiscal Discrimination

Edited by William F Shughart II

Foreword by Paul W. McCracken

First published 1997 by Transaction Publishers

Published 2017 by Routledge

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

711 Third Avenue, New York, NY 10017, USA

Routledge is an imprint of the Taylor & Francis Group, an informa business

Copyright 1997, The Independent Institute, Oakland, CA.

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notice:

Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

Library of Congress Catalog Number: 97-13662

Library of Congress Cataloging-in-Publication Data

Taxing choice : the predatory politics of fiscal discrimination / edited by

William F. Shughart II ; foreword by Paul W. McCracken.

p. cm.

Includes bibliographical references and index.

ISBN 1-56000-303-0 (cloth : alk. paper)

1. Excise taxUnited States. 2. TaxationPolitical aspectsUnited States. I. Shughart, William F.

HJ5707.U5T39 1997

336.200973dc21

97-13662

CIP

ISBN 13: 978-1-56000-303-8 (hbk)

ISBN 13: 978-1-56000-931-3 (pbk)

The Independent Institute is a non-profit, non-partisan, scholarly research and educational organization that sponsors comprehensive studies on the political economy of critical social and economic problems. The politicization of decision making in society has largely confined public debate to the narrow reconsideration of existing policies. Given the prevailing influence of partisan interests, little social innovation has occurred. In order to understand both the nature of and possible solutions to major public issues, The Independent Institutes program adheres to the highest standards of independent inquiry and is pursued regardless of prevailing political or social biases and conventions. The resulting studies are widely distributed as books and other publications, and publicly debated through numerous conference and media programs.

Through this uncommon independence, depth, and clarity, the Independent Institute pushes at the frontiers of our knowledge, redefines the debate over public issues, and fosters new and effective directions for government reform.

FOUNDER & PRESIDENT

David J. Theroux

RESEARCH DIRECTOR

Robert Higgs, Ph.D.

ACADEMIC ADVISORS

Stephen E. Ambrose

University of New Orleans

Martin Anderson

Hoover Institution

Herman Belz

University of Maryland

Thomas E. Borcherding

Claremont Graduate School

Boudewijn Bouckaert

University of Ghent, Belgium James M. Buchanan

George Mason University

Allan C. Carlson

Rockford Institute

Robert W. Crandall

Brookings Institution

Stephen J. DeCanio

University of California, Santa Barbara

Arthur A. Ekirch, Jr.

State University of New York, Albany

Richard A. Epstein

University of Chicago

B. Delorth Gardner

Brigham Young University

George Gilder

Discovery Institute

Nathan Glazer

Harvard University

Ronald Hamowy

University of Alberta

Steve H. Hanke

Johns Hopkins University

Ronald Max Hartwell

Oxford University

H. Robert Heller

Intl. Payments Institute

Lawrence A. Kudlow

American Skandia Life

Assurance Corporation

Deirdre N. McCloskey

University of Iowa

J. Huston McCulloch

Ohio State University

Forrest McDonald

University of Alabama Merten H. Miller

University of Chicago Thomas Gale Moore

Hoover Institution

Charles Murray

American Enterprise Institute

William A. Niskanen

Cato Institute

Michael J. Novak, Jr.

American Enterprise Institute

Charles E. Phelps

University of Rochester

Paul Craig Roberts

Institute for Political Economy

Nathan Rosenberg

Stanford University

Simon Rottenberg

University of Massachusetts

Pascal Salin

University of Paris, France Arthur Seldon

Institute of Economic Affairs, England

Julian L. Simon

University of Maryland

Joel H. Spring

State University of New York, Old Westbury

Richard L. Stroup

Montana State University

Thomas S. Szasz

State University of New York, Syracuse

Robert D. Tollison

George Mason University

Arnold S. Irebach

American University

Gordon Tullock

University of Arizona

Richard E. Wagner

George Mason University

Sir Alan A. Walters

AIG Trading Corporation

Carolyn L. Weaver

American Enterprise Institute

Walter E. Williams

George Mason University

This century saw the epic struggle between the liberal, market-organized economic system and the state-managed economic order resolved in favor of the former. With the disintegration of the USSR and the shift in China toward more activity through a private sector, the century has delivered its verdict about a so-called planned economy, and it is not a favorable one for those who saw the route to progress through government management of economic life. Yet for much of this century, it is not amiss to point out, the prevailing orthodoxy in the intellectual community tended toward the primacy of politically directed social planning. Historys verdict is now in. Reliance on politically directed social planning to achieve economic progress is a losing strategy. Indeed, logic was always on that side of the case, but logic often has hard going against views that seem to take on the mantle of quasi-religious beliefs.

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