A Challenge to the Libertarian Challenge

J. Juris. 1 (Forthcoming)

9 Pages Posted: 6 Mar 2017

Date Written: March 4, 2017


The “Libertarian Challenge” to redistributive taxation was given as the syllogism: (i) Property is justified; (ii) Taxation is inconsistent with property; (iii) Therefore, redistributive taxation is unjustifiable. In this article, a challenge to the Libertarian Challenge is proposed based on the rejection of such a Libertarian definition of money as effectively equivalent to property. The value of money is further shown to be relative based on the holder. For example, the wealthy accumulate money for-exchange while the poor apply money for-use. Thus, to the wealthy money yields a “positional preference” in terms of the total accumulated amount relative to other wealthy persons. Taxes of course stand in opposition to such accumulations just as stated in the “Libertarian Challenge”. However, a form of redistributive taxation could be applied which would levy tax yet maintain such “positional preference” of the wealthy vis-à-vis one another in terms of total money accumulations. This approach defeats the “Libertarian Challenge” because the tax is paid proportionately out of money accumulations, but where relative property holdings are maintained between wealthy persons. Such approach also yields a Pareto optimal result where money is transferred to the poor but no wealthy person is made worse off on a relative basis.

Suggested Citation

Bogenschneider, Bret, A Challenge to the Libertarian Challenge (March 4, 2017). J. Juris. 1 (Forthcoming). Available at SSRN: https://ssrn.com/abstract=2927450

Bret Bogenschneider (Contact Author)

University of Surrey - School of Law ( email )

United Kingdom

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