Granada, Spain — The modern state comes into being during the Middle Ages in Europe. It establishes what many economists call a social good, a strong military that (a) provides security for citizens, (b) gives room for nationalism, and (c) implements accountability. We have the right to live securely and without fear, the right to define a national identity, and to create the means by which to expand fortunes, guided by laws. The Modernaccountable State, there it is. And it’s all held together by taxation — people pay for protection, pay for nationalism, and pay for laws.
In the United States, the Pentagon budget, as reported by The Washington Post, consumes 80% of individual income tax revenue. The Pentagon spends more on war than all 50 states combined spend on health, education, welfare, and safety. According to the Lexington Institute, the U.S. has 5% of the world’s population — but almost 50% of the world’s military expenditure. The military receives 54% of discretionary spending. To get all this done,Americans spend $27.7 billion a year preparing taxes. In 2008, GE made $10.3 billion in pre-tax income, but didn’t have to pay a single cent in taxes;Bank of America paid no taxes in 2009, even though it made $4.4 billion in income; and, Molson Coors paid no taxes in 2009, and was actually paid $14.7 million by the government.