More libertarian than libertarian

I decided to take a look at the platform of the Libertarian Party of Canada, finding it at www.libertarian.ca/platform. The first plank listed is to “Reduce federal income taxes to a maximum rate of 15% and increase the personal income tax exemption amount to $17,300 from $11,500”, and I am thinking “Whoa! That’s not really libertarian, is it?” Why stop at 15%? Just repeal The Income Tax Act. Get rid of it…..and all the expense associated with enforcing it. No more CRA wages or building costs. And while we are at it, get rid of GST and any other federal sales tax. No more excise tax. Customs duties? Gone. On anything and everything.

So, how would the federal government pay for necessary expenditures? Glad you asked. They can just “print” money. It’s not really printing, but rather electronic data in computers. Wouldn’t that cause hyperinflation? No. First, there would be a legislated limit to the expansion of the money supply. Second, production of goods and services would probably increase rapidly in an environment of no tax, so that even though there was more money chasing goods and services, these would be increasing along with money. And even if your dollar was worth less, this depreciation would be mitigated by you having the extra money that previously would have been applied to taxes. And THAT is a LOT of money.  A prime influence upon price inflation is the velocity of money, and with the extra money in private hands by reason of no more federal taxes, it seems likely that the velocity would abate somewhat.

Congruent with this, I propose that non-renewable natural resources not be exportable except in processed form. These resources are property of all of us, and our property rights should be respected.  Oil would not be exported except as refined products. Gold would be jewellery, coins or industrial forms.

In addition, the federal government would provide free post-secondary education by paying tuition in full. Living costs would be the responsibility of students, but they could obtain student loans to cover them in full, and these loans would be forgivable at the rate of 1/15 per annum of the amount borrowed, provided that the student was working in a Canadian position for 30 hours a week, or was prevented from doing so solely by disability.

Furthermore, let the market determine interest rates. They would now be a function solely of the supply of and demand for money. Government would no longer be competing with businesses and consumers for funds, so this would help ease the demand. The extra money in the hands of people because of no federal taxes would help increase the supply of money also, so rates would tend to not be onerous.

What would the consequences of all this be? Business would want to move TO Canada instead of away as a result of abundant well educated labor, easy to obtain materials (raw non-renewables are not being exported, and materials from outside the country can be imported with no duty), money being obtainable for funding capital formation, and no confiscatory taxes.  A very competitive business environment that would tend towards creation of jobs for almost everyone that wanted to work.

By and large, the Libertarian platform seems thoughtful, and maybe one day someone of influence in that party might decide to make the Gordon Feil suggestions part of their campaign. Sigh.  Wouldn’t that be cool?