Comment Re:What would you do if you had a million dollars? (Score 1) 152
I think that the current system is more akin to "from each according to his ability, to each according to his need" when it should be "pay for what you use".
There are two problems with this. First, it is extremely difficult to measure how much someone uses. How much do you use a road (this is actually an easy one - per gallon gas tax, all toll roads [might be impractical for surface streets], per mile car registration fees, etc.)? How much do you benefit from the presence of a fire department (even if your house doesn't catch fire, you benefit when they put out the fire down the block)? What about police? How much do you benefit from FDA regulations which ensure certain standards of food/drug quality? How much CDC or NASA do you use?
Second, often times the people who use a lot (i.e. those on welfare, receiving food stamps, etc.) are those least able to pay. It doesn't make much sense (when talking about the social safety net part of government) to say you can only receive a government benefit if you can pay for it.
I am skeptical of most claimed tangible public goods. Just to make it clear, a public good is both non-excludable and non-rivalrous.
[lighthouse analogy]
So if Exxon wasn't contributing to the lighthouse fund, it would be best for the lighthouse to turn off it's light when the Exxon Valdez was trying to navigate the treacherous reef during a storm? What we're talking about here isn't so much public goods as externalities and the Tragedy of the Commons. In your analogy, the non-paying shipping company probably isn't bearing all the cost of not-paying for lighthouse coverage. Even if there isn't a damages cap, it's not always possible to put a monetary figure on the costs of pollution. What's the financial impact of the Deepwater spill? Chernobyl? Is it possible for a single entity to cause an incident which costs more than it's ability to pay?
But we're getting away from the question of taxation and how to pay for government. If we're talking about lighthouses, police/fire, roads, parks, CDC, FDA.... excludability costs money. It's more efficient (but perhaps not fairer in your view), to offer those benefits to everyone. It might cost X to have a lighthouse. It will cost X+Y to have a lighthouse with a mechanism to determine who's paid and who hasn't.
To me, the discussion shouldn't be "how do we handle the excludability," but rather "what services should the government be providing. Maybe it shouldn't be providing crop or flood insurance. Maybe it shouldn't be providing unemployment insurance. Maybe it shouldn't be providing fire services.
Sure, Texas isn't going to let you drop a nuke on Oklahoma but outside of that, if you want to drop paratroopers in OK, that'll be okay with Texas,
I'm not sure why you're using States in your analogy. The issue is if the individual would voluntarily contribute to fund the national defense. If everyone else is paying $100 per year to support our military, why should I pay anything? The proof of the free-rider effect is shown when you look at Canada's military spending versus ours. Canada (and Mexico, Europe, Japan, Taiwan, Philippines, etc.) don't have to pay for defense because they know we will.