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Independence Way

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

Independence Way

By Lady Liberty


While most Americans were gearing up to celebrate the summer's biggest holiday, a lot of them had only the vaguest idea of what they were commemorating with their flags and fireworks. A poll (abcnews.go.com/sections/us/Politics/fourthofjulypoll030703.html) released just prior to Independence Day showed that, while the majority of Americans thought the Constitution had an impact on them, even more had only the most general idea of what that venerated document actually says. Further questioning of respondents showed that fewer still knew much about the Declaration of Independence. So in a post 9/11 climate, earmarked by the accelerated loss of liberty, people celebrated a freedom they largely no longer have, and apparently don't remember having.

While the lack of knowledge afflicting many people offers some shallow excuse for their failure to rail against lost liberties, some of those who do know their history and who do understand what we've lost and are losing also aren't fighting. Some did, but have been felled by the apparent futility of their lonely uphill battle. Some, seeing themselves in the small minority, gave up without fighting at all. And then there are the folks of the Free State Project (www.freestateproject.org)

The brainchild of Yale graduate student Jason Sorens, the Free State Project is dedicated to establishing a bastion of liberty to hold against a rising tide of socialism and apathy. Sorens hasn't fooled himself by believing he and those who have joined him can turn the juggernaut that is America's headlong fall away from freedom. His proposal involves instead just one state. That one state hasn't yet been chosen, but there are currently ten candidates under consideration. Those ten were selected based on several factors, the most important being population. Sorens calculated that, for states with a population of 1.5 million or less, a relatively few pro-freedom activists could not only make a difference but could actually stem and turn the political tide.

The dream held by the Free State Project is a relatively simple one. It imagines a place where the Constitution isn't a memory but is once again the basis for the law. Invasive and unconstitutional laws would be repealed by liberty loving legislators elected by a pro-freedom populace. Taxes would be few and strictly restrained; free trade would rule the marketplace. The Free State would, in short, be a place where Americans could once again live free in the manner envisioned by the Founding Fathers.

According to the game plan for the establishment of the Free State, once the Project's total membership reaches 5,000, members will vote to select a target state. Current projections estimate that the Project will have 5,000 members by sometime this August (which means you still have time to make your voice heard in the selection process if you join now). After that, when membership numbers reach 20,000, those who've signed onto the project will have five years to relocate to the chosen state. Those 20,000 freedom-loving individuals will, according to all of the best calculations, represent enough votes to put at least one state in the union back on the track built by the Founders. It is Sorens' fondest hope that, once there's one Free State, others will look at its success and take it upon themselves to see that their state becomes a Free State, too.

I freely confess that, when I first heard of the Free State Project, I considered it more an intellectual exercise than an achievable goal. But I visited the group's website anyway, and what I learned there proved to me that the membership was entirely serious, and to a man (and woman), believe the goal of a Free State can be met.

After having been convinced myself that a Free State could become a reality, and that I could help make it so, I began to talk to others about it. Although a few have become excited at the prospect and have announced their own willingness to work toward the Project's ultimate success, too many have told me that it will never work or that it will be too difficult for them to relocate. To some degree, I'm forced to admit that they're right.

It's perfectly true that the Free State Project will never work if enough people don't want it to and aren't willing to do something - even a little! - to help it along. Small donations, helping to spread the news by word of mouth or emails, researching candidate states, and many other relatively minor contributions will all add up toward success. And, having moved more times than I care to count in my own life, relocation is a serious inconvenience at best so I can understand the reluctance of some to pack up and go.

On the other hand, I remember that some 227 years ago a group of men (and, in many cases, the unsung women at their sides) offered everything they had to the cause of Revolution. They gave up their fortunes. They rode from town to town passing out leaflets or speaking to small gatherings while their farms, businesses, and families suffered. They bled. They risked the loss of property as punishment for small "crimes" against the state, and they risked execution for treason. Some of them lost everything but their lives; some lost everything including their lives. But no matter their great sacrifices, almost all of us today would have to say that what they did - the country they created - was worth their pain and suffering.

By working together and taking some significant risks, a relatively small group of brave men and women gave us our freedom. We now have the opportunity to travel a similar route but with far less personal consequence and a far greater chance of success. Our forefathers gave their blood. All we need to do is give our word. The revolutionaries died. We merely need to endure the inconvenience of packing and unpacking. The Founders winning of an Independence Day makes it possible for us to follow the independence way laid out neatly for us in the Free State Project. The only real question is whether or not we've enough of our forefathers in us to take the path once again toward liberty.

Lady Liberty is a pro-freedom activist whose goal is the education of the ignorant, and the inspiration of the educated to political activism. Her online home is at http://www.ladylibrty.com.

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LISTEN, Libertarian!

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

LISTEN, Libertarian!

By Tim Condon • October 9, 2005

[This essay was also published in the Sierra Times 10/10/05]


Libertarians are such losers. I know, this is not a way to endear myself to them, even when my best friends are all libertarian or near-libertarian. But success is staring them in the face, and a significant proportion of them deploy massive brainpower and argument to make sure that nothing ever gets better. It's incredible.

LISTEN, libertarian! It's over 30 years later, and we're still hearing endless platitudes that keep us from gaining political power in the service of individual freedom.

"All we need to do is a better job at selling our product!" the activists say. But we've been trying to "sell our product" for decades, and the people of America aren't buying.

"All we need to do is a better job of educating people about what we stand for!" say the activists. But after 30 years of libertarian presidential candidates and campaigns, the voters are more than aware of what we stand for.

We are caught blinded...blinded in the floodlights of an ugly reality: Today there is no significant voting constituency in America for libertarian ideas. And it's time to face up to that fact.

If we are really interested in living in a society where every man and woman can do whatever they want so long as they harm no one else, there is only one possibility for success. Our numbers must be concentrated in one sovereign American state, there to exercise the power that comes with voting power in a democracy.

There is simply no other way.

Such a "democratic experiment" would be no experiment at all. It would merely reference what the Founding Fathers intended the thirteen sovereign, revolutionary states to be. It would be a shining example to the rest of America and the world, demonstrating the salutary effects of people living in freedom. It would be a "little Hong Kong," and would instruct our country on what it has lost, just as Hong Kong instructed China on the benefits of free markets and property rights for the past half-century (as of January 2005 Hong Kong was rated by the Heritage Foundation and Wall Street Journal as the freest country in the world economically; the United States isn't even in the top 10).

This is the meaning, and the aim, of the four-year-old Free State Project (FSP). It offers real hope for liberty in your own lifetime.

Yet in the face of the FSP opportunity, the great majority of libertarians remain immobilized, or worse. The Executive Committee of the national Libertarian Party has refused to endorse the Free State Project, even while many state parties have. Former LP Presidential candidate Harry Browne all but dismissed the Free State Project ("I have not been a big fan of the Free State Project...I have no wish to participate in such a program..."). Reason magazine ran an article that reprised all the failed "new country" projects of the past 40 years, making it clear they think the FSP is just another "pipe dream". And the CATO Institute won't even comment on the Free State Project.

As for the rest of you libertarians, you seem to regard the FSP plan with a mixture of fear and revulsion. Move to a small-population, cold-weather state to attain liberty in your lifetime? Suddenly we hear you bleating about how "things aren't so bad" where you live. And we hear emphatic statements that you're sure as hell not moving thousands, or even hundreds, of miles away from your comfortable home, just to live free. Uh uhhh!

After all, you live where you live because you like it there. It may be that you arrived at your present place and state of lassitude through an accident of birth or parentage. Or you may have visited at some point, and liked it enough to stay. Now it is where your friends are. It is where your job is. It is where your family is.

But most of all, it is where you are comfortable.

Of course, the question of "comfort" to those who profess to believe in libertarian ideas and ideals is problematical. When you say "things aren't that bad here," you sound both smug and hopeful, even as you delude yourself. You also sound oh-so-earnest when you explain that "I'm not prevented from doing most of the things I want to do. As long as I'm careful, and don't make myself too public, it's not that bad at all."

You pause to let that fortuitous bit of information sink in, and then continue: "Besides, I'm not really interested in smoking pot or setting up a whorehouse." As if such things meant anything in the parlance of what individual freedom is about. Texas Representative Ron Paul has stated that, "American history, a least in part, is a history of people who don't like being told what to do." Yet today, he points out, we have built a society that has "laid the foundation for tyranny by making the public more docile, more accustomed to government bullying, and more accepting of arbitrary authority."

Meanwhile, you libertarians fall all over yourselves explaining why you can't or won't move to a single state where you could fight being "told what to do." After all, it's not so bad to bend a little to accommodate your lives to the ever-increasing demands of local and state governments, right? You're quite comfortable where you are, and if you can't stem the increasing tendency of government to minutely supervise what you are permitted to do, well then, you just go along with it.

Let me ask you a few things.

What does it mean when a house of a few thousand square feet — nice, but not palatial by any stretch of the imagination — can be assessed and taxed so that the property tax bill amounts to one or two thousand dollars per month? It means those who own the homes aren't really the "owners"; they merely "rent" their homes from the local government, often while clamoring for more "government services."

But it's okay to you libertarians, because you don't live in a big, expensive house anyway, so you don't have to worry about sky-high property taxes. And you think paying two hundred dollars a month in property taxes is quite reasonable, especially when compared to the taxes paid by people with bigger houses. Except that even those levels of taxation applied to our homes are outrageous when you think about it.

In New Hampshire, by contrast, there are no state income taxes, no general state sales taxes, no estate taxes, no tangible personal property taxes, no intangible personal property taxes, no corporate income taxes, and no fat "political class" endlessly agitating for higher taxes and larger state government. Says one committed libertarian from another northeastern state, "When all state and local taxes are taken into consideration, along with other mandated expenses such as insurance, I'll save between $50,000 and $75,000 every year after I move to New Hampshire from New Jersey."

How about when whole cities, and even states, presume to tell business-owners whether they can or cannot allow smoking — or drinking, for that matter — in and on privately owned commercial property?

That's all right with you libertarians. You don't like smoking anyway, and you're perfectly willing to do your drinking at home. And when the property rights of others are violated to suppress behavior you don't favor, well then that's okay too.

In New Hampshire, by contrast, there are no statewide anti-smoking laws because the predominant cultural outlook is "live and let live." There are also no "open container" laws, and random police roadblocks are forbidden by law without a court order. Fittingly, the state motto is "Live Free or Die."

Here's another example: What does it mean when cities totally ignore the 2nd Amendment, routinely outlawing the right to keep and bear firearms by citizens living in those cities? The people must like the idea, since they keep electing the politicians who push it. And when murder and assault rates skyrocket in such places — as they have in Washington DC since firearms have been virtually outlawed — the people and politicians agitate for even harsher anti-gun ordinances!

But it must be okay with you libertarians, because you continue to live in such places. Perhaps you don't feel the need or desire to own or carry a firearm. And you figure you're safe enough in your neighborhood anyway, so you think such laws really don't affect you.

In New Hampshire, by contrast, the right to openly carry personal firearms is enshrined in the state constitution. It is also a "shall issue" jurisdiction where state law commands local authorities to issue concealed carry permits upon submission of an application. Not surprisingly, New Hampshire has one of the lowest crime rates in the country and is said to be one of the four safest states in America.

LISTEN, libertarian: Virtually every political and philosophical position you hold is well thought out, logical, and beneficial. Yet most of those political and philosophical positions are utterly rejected by the mass of Americans. They don't agree with you! Your ideas scare them! And your numbers are so pitifully small that after 30 years not one LP candidate for any statewide or federal office has ever been elected.

Why do you sit there so smug in the clarity and justice of your positions that will never be implemented? Nor ever be seriously considered or debated? You cannot win because in any democratic political calculus you are swamped by those who disagree with you and fear the ideas you espouse.

The only way for you to have any kind of hope for success is to take it upon yourselves to concentrate your numbers. It has been done in Utah, where the Mormons hold sway. It has been done in San Francisco and Key West, where gays hold sway. It has been done in New York and New Jersey, where predominantly corrupt state socialists hold sway. It has been done in Vermont, where a formerly rock-ribbed Republican state has been transformed into a highly-taxed political paradise for liberal statists, so much so that whole towns are now asking to secede and join neighboring low-tax New Hampshire.

New Hampshire. The chosen Free State. It is the only place where politically active freedom-lovers have a chance to wield real political power. Why? Because the state is already semi-libertarian in outlook, which is why the FSP membership chose it.

The chance is right in front of you, libertarians! Right now! The migration of freedom-loving people to New Hampshire has already begun. Several hundred people from all over America and the world have already moved to New Hampshire. You can read about them and their stories on the Free State Project web site at www.freestateproject.org. If you join the others already moving there in a steady stream, you won't have to put up with the common, petty annoyances forced upon you by increasingly officious apparatchiks of state and local government. You won't have to put up with the increasing numbers of "little Hitlers" in daily life whose mission it is to help make you "do as you are told" and "obey the rules." Rules that shouldn't exist in the first place.

But even that prospect doesn't entice most of you. For most of you the response has been continued lassitude. After all, you're comfortable where you are, and you're certainly not going to endure any disruption or discomfort in your life to make freedom happen. Not now, and not in the future.

In the 2004 national election, Libertarian Party presidential candidate Michael Badnarik — himself a signed participant with the Free State Project — garnered almost 400,000 votes. Yet the Free State Project seeks only 20,000 activist libertarians and other freedom-lovers to make the move to freedom (they're currently at almost 7,000 signed-up participants.

What would be the impact on politics in New Hampshire? "If you put just 5,000 politically active liberty-lovers into New Hampshire, let alone 20,000," one Granite State resident told me, "they could sweep the state; they'd be more politically powerful than anything either the Democrats or the Republicans could put up."

But you libertarians sit there in your highly-controlled, high-tax home states where property rights are routinely violated and local ordinances endlessly proliferate, and you refuse to take any action other than running futile election campaigns that never garner more than a few percent of the vote.

In the final analysis, you're doing little to attain liberty in your own lifetimes, even while you prate on about how much you believe in political activism, individual freedom, and the Bill of Rights.

Never before were Samuel Adams' words more apt than today with regard to the general libertarian response to the Free State Project. On August 1, 1776, less than a month after the Declaration of Independence had been signed and published, Adams said these words in a speech to a packed house: "If ye love wealth better than liberty, the tranquility of servitude than the animating contest of freedom--go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that ye were our countrymen."

Is it any wonder that the flame of freedom flickers and sputters in America today?

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Changing State Government

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

Changing State Government from the Bottom Up

by Joseph A. Swyers

Joe has been a member of the Leadville, Colorado city council since January 2000 and is a former member of the Libertarian Party. He owns a small retail store and is a past adjunct faculty member at Colorado Mountain College.

Our free country is broken because Americans have increasingly become a culture of ever more dependence on government and of using government power against one's neighbors for nearly any issue great or small. It may be an innate characteristic of humans to use power to the maximum extent they can get away with.

In America the abuse of power has been predominantly enabled by the state governments. Power has been gathered by the federal level because the states have permitted it by abdication of their states' rights. The states have directly used power against individuals, families, and communities. And the states have given or mandated ever more power to local governments -- which, in turn, have often used that power to the maximum extent permissible by state statute. Often they tax to the statutory limit and impose all the building, planning & zoning and other codes that statutes permit (this I know because we are doing it).

How can a relatively small cadre of liberty-minded activists begin to reverse this trend? Such small groups are effectively marginalized to ineffectiveness at the federal level. This is also the case in most, if not all, states. Top down attempts have not worked. Liberty-minded people have been unable to win and persevere in state or federal offices which could enable a top-down approach to work. Winning one or a few seats in a legislature of dozens or hundreds of representatives or senators results in marginalization of liberty-minded legislators. The few who make it that far find their efforts vastly outweighed by not only other legislators but by immense, entrenched, control-minded bureaucracies. Even the smallest of state governments presently are generally too big for a relatively small cadre of liberty-minded people to successfully influence except by voter initiatives and expensive campaigns to pass those initiatives.

Voter initiatives have been often successful where they are permitted by state statute. In those states where voter initiatives are not permitted, how do liberty-minded activists get that freedom? The legislatures are quite unlikely to give away their power and risk being undermined by voter initiatives. And a voter initiative to gain the ability to have voter initiatives is the proverbial chicken and egg or Catch 22. Thus perhaps only states which already have a voter initiative process should be considered by the FSP.

Attempts at a state level, whether by initiative or by the legislature, to restrict government at a state or local level are met with fierce resistance by state and local governments. As we've seen with Colorado initiatives, fear mongering by community 'leaders' and their supporters is common. Sheriffs, police chiefs, fire chiefs, chambers of commerce, city councils, school boards, and county commissioners are enlisted by their state-level organizations and by each other's organizations to fight such initiatives. Often the only initiatives that survive such a full court press are tax limitations because taxpayers will nearly always vote for lower taxes (but not fewer services -- regardless of these conflicting goals).

Because of the entrenched power of local government leaders and the voters who listen to such leaders' advice, and because of the addiction of people to laws that tax and regulate their neighbors, I propose a bottom up solution to change this culture of dependence and abuse of power at the grassroots level.

Some of the proposed repeals or revisions of codes, laws, and taxes at the local level may seem too minor for political parties to bother with. But the pervasive effect of such laws upon individuals, families, neighborhoods, communities, and small businesses and other organizations that these depend upon is underestimated by those who focus on state and federal governments. Furthermore, for the reasons detailed above, changing such laws is far easier at a local level than jousting with state or federal governments. A small cadre of liberty-minded activists can make substantive changes on local boards, whereas their few numbers are marginalized at state and federal levels.

Activists can start with repealing planning and zoning codes and many of the other codes which restrict individual freedoms and compromise property rights. Then help neighbors and voters adjust to each others newfound freedoms to build or remodel or to start businesses. Such minor-seeming freedoms as enjoying fireworks or not cutting one's grass or working on a car in the driveway can begin to change the habit of worrying about a code enforcer looking at one's property.

Local governments can re-instill a sense of property rights and individual freedoms. They can make it clear to neighbors that a person's property line is inviolate. They can restrict local agencies to helping people rather than being code enforcers which people are reluctant to let into their homes. People can regain a sense of trust in local police, ambulance and fire departments. People should not have to worry about calling the fire department or an ambulance or letting a police officer come into their home to help them. Because they are ill or injured or have a fire and need help should not also get them subsequently arrested for what they may have in their home -- the mere possession of which does not injure anyone.

Often 'property values' are cited by voters, owners, and neighbors as a valid reason for such local codes. Why should government be partners in real estate speculation? Local governments should instead defend people's freedom to possess and use their property. The respect and defense of property lines extends in both directions. As long as a person does not force nuisances or harm upon one's neighbors they should be able to do what they want, as they want, on their own property and in their homes.

Local governments can affect enforcement even of state or federal laws by interceding and defending the private property line as inviolate. They can restrict the defacto trespass by any agency upon private property to arrest people, confiscate property or impose restrictions when people on that property are harming nobody but perhaps themselves (victimless crimes).

As people at a local level become more used to basic liberties they will become more adamant about their personal and private property and their individual freedoms. As more individuals and communities learn they can depend on their local governments to stand with them in defense of their private property rights and individual freedoms, then ever higher levels of government will be persuaded by voting majorities to also defend such rights and freedoms. Larger cities and counties will come around as a majority of their neighborhoods and towns demand liberty-minded changes to municipal and county ordinances. The state legislators from those areas will then champion such freedoms in their legislatures - or else pay for it at the local polls back home in their districts. A majority of legislators will be able to change the state laws and even override a governor if necessary. How far a state can go in telling the feds to leave their people alone remains to be seen. But, again, heavy-handed invasive federal law enforcement can be severely compromised if the state and local police refuse to help or insist on helping their own people instead. At least it is a beginning -- which is more than the top-down approach has yielded.

September 25, 2002

The views expressed in this article do not necessarily represent those of the Free State Project, its Officers, or Directors.

Libertarianism and Land Value Taxation

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

Libertarianism and Land Value Taxation

By John H. Beck
Professor of Economics
Gonzaga University

  1. LIBERTARIAN FOLLOWERS OF HENRY GEORGE
  2. For some libertarians any tax is illegitimate (Feser 2000). However, one tax that has received some support from libertarians who advocate a limited government financed by taxation is a tax on land values. The most famous advocate of land value taxation is Henry George, the author of Progress and Poverty (1879). Yeager (1984) identifies several libertarian views shared by Henry George, including his opposition to protectionist trade policy, his rejection of socialism, and his defense of natural rights including property rights. Several prominent libertarians in the early twentieth century were influenced by Henry George, including Albert Jay Nock, author of Our Enemy the State (1935), and Frank Chodorov, who became the director of the Henry George School of Social Science and editor of the Freeman in 1937 (Nash 1996, 11-14; Raimondo 1993, 114-129). Maurice Allais, one of four future Nobel prize winners attending the first meeting of the Mont Pelerin Society in 1947, declined to sign the society's Statement of Aims because its defense of private ownership of land conflicted with his Georgist ideas (Hartwell 1995, 42). This illustrates that Georgist ideas about land ownership and taxation have frequently been divisive among libertarians. Yeager (1984, 160) notes that Murray Rothbard rejected George's moral and economic arguments for land value taxation, although Rothbard applauded George's discussion of patents and copyrights as well as his advocacy of free trade.

  3. ARGUMENTS FOR LAND VALUE TAXATION
  4. There are both equity and efficiency arguments for land value taxation. The equity argument is that land is given by nature and the value of the land was not created by human effort. Furthermore, increases in the value of land are caused by public services and economic development in the neighborhood, not by the effort of the landowner. For example, the construction of an interstate highway will increase the value of land near a highway interchange as this becomes a more desirable site for business development. Therefore, it is argued, because the landowner has done nothing to deserve the gain from his ownership of land, the government should capture this gain through taxation and use it for the benefit of all members of society. However, as discussed in section IV below, there are also equity arguments against replacing the current system of property taxation with a tax only on land values.

    The efficiency argument for land value taxation is that, unlike almost all other taxes, it does not discourage productive activity or distort choices among consumer goods. A tax on wages discourages work effort. The property tax on improvments discourages construction and other improvements. Tariffs on imported goods discourage international trade. But the supply of land is fixed, given by nature. A tax on the value of land (based on its potential use), will not discourage the landowner from making the land available. The owner must pay the same tax regardless of what he does or does not do with the land. It should be noted that the method of assessing land values is crucial; changes in the market value of land attributable to permanent improvements to a site should not be included in the taxable land value.

  5. POLITICAL CONSIDERATIONS
  6. Advocates of any tax reform proposal need to consider likely sources of opposition and support and to devise strategies to minimize opposition and build a coalition of supporters.

    Opponents of land value taxation have often charged that this would shift the burden of taxation to farmers, who own large areas of land (Peirce 2003, 6). Although in fact family farmers might benefit from an increase in the tax rate on land value offset by a reduction in the tax on improvements (Wenzer 1999, 239-268), a reform strategy assuaging farmers' fears would have greater chance of success. Limiting land value taxation to urban areas rather than adopting it as the "single tax" for all state and local government revenues would eliminate opposition from farmers.

    Environmentalists are not often allies of libertarians, but land value taxation is one issue which both might support. Environmentalists support replacing the property tax on improvements with land value taxation in urban areas because it would encourage more development in urban centers and discourage sprawl (Durning and Bauman 1998, 57-65; Wenzer 1999, 205-223).

  7. IMPLEMENTATION ISSUES
  8. "An old tax is a good tax." This adage does not merely reflect the fact that people prefer the taxes to which they have grown accustomed to new, unfamiliar taxes. The implementation of any tax reform affecting the taxation of durable assets raises serious equity issues, and land is the most durable of assets. This is due to the phenomenon of "tax capitalization." The value of an asset reflects the present value of the expected future income to be derived from that asset. Anticipated future taxes reduce the expected future income and thus are "capitalized" in the value of the asset.

    To understand how tax capitalization may create inequities when unexpected tax reforms are implemented, consider an unanticipated shift from a property tax applied at the same rate to land and improvements to a tax on only land value that yields the same total revenue. Compare the effects of this change on the values of two properties, a parking lot and a parcel with a ten-story office building. Almost all of the value of the parking lot is the land value, but most of the value of the parcel with the office building consists of "improvements." The market value of the office building will increase as the anticipated future taxes fall, and the value of the parking lot will fall as the tax rate on the land value increases. When the current owners of these properties purchased them, they each paid a price that reflected the expectation that the old property tax system would continue into the future. The unanticipated tax reform causes a "windfall gain" to the owner of the office building and a "windfall loss" to the owner of the parking lot. Many people consider such windfalls "unfair."

    One method to ameliorate such windfalls is to implement tax reforms gradually. For example, rather than immediately abolishing the property tax on improvements and imposing a tax on land values sufficient to raise all the desired revenue, a "split-rate" property tax might be adopted. Under this system the land component of property values is taxed at a higher rate than the tax rate on improvements.

  9. EMPIRICAL STUDIES OF LAND VALUE TAXATION
  10. Pittsburgh, along with a few smaller Pennsylvania municipalities, has had a "graded" or "split-rate" property tax for several decades. Prior to 1979, the city of Pittsburgh taxed land at twice the rate applied to structures (although county and school district property taxes applied the same rate to land and improvements). After 1980, the city of Pittsburgh raised its rate on land to about five times the rate on structures. This policy change provides an opportunity for researchers to test empirically whether land value taxation really does have the beneficial effects ascribed to it by theoretical analyses. Oates and Schwab (1997) analyzed building activity in 15 "rust belt" cities from 1960 to 1989 and found a significant increase in building activity in Pittsburgh after the 1980 tax reform. Of course such empirical studies are plagued by the difficulty of measuring the effect of a change in one variable when other variables that might affect the outcome are changing as well. In the case of Pittsburgh, the increase in taxes on land was accompanied by large tax abatements on new structures although there was no decrease in the property tax rate applied to old buildings. Oates and Schwab conclude that the revenue raised by the land tax increase allowed the city to grant tax abatements on new building and to avoid raising other taxes that would have discouraged economic activity in the city. Additional studies showing the effects of the split-rate tax in Pennsylvania are Bourassa (1987 and 1990) and Cord (1983).

    Cord (1983, 172-173) briefly mentions evidence of the effects of land value taxation compared to the conventional property tax on land and improvments from Australia. A more extensive study of the Australian experience was done by Edwards (1984), who found that the value of new housing and the housing stock was greater in Australian communities that taxed land at a higher rate than improvements than in communities with a uniform property tax on land and improvements.

  11. CONCLUSION
  12. For libertarians who believe markets generally allocate resources efficiently, the best tax is one which creates the least distortion of market incentives. A tax on the value of land meets this criterion. Furthermore, the benefits of local government services will be reflected in the value of land within the locality. Therefore, it may be deemed fair that landowners pay taxes to finance these services in proportion to the value of the benefits they receive. Although Henry George advocated a tax on land values as the "single tax" to replace all other taxes, a tax on land value seems especially appropriate for municipal governments. If a complete shift from the current property tax to a tax on land value alone seems too radical, municipal governments might reduce the property tax rate on improvements while imposing a higher tax rate on the value of land.

    Land value taxation has been under consideration in several eastern European countries. As reported by Youngman and Malme (1999), Estonia adopted a tax on the market value of land in 1992. Nations considering a tax structure fostering a market economy in the post-communist era may present one of the most promising opportunities for implementing land value taxation.

REFERENCES

Borcherding, Thomas E.; Patricia Dillon; and Thomas D. Willett. "Henry George: Precursor to Public Choice Analysis." American Journal of Economics and Sociology 57 (April 1998): 173-182.

Bourassa, Steven C. "Land Value Taxation and New Housing Development in Pittsburgh." Growth and Change 18 (Fall 1987): 44-55.

Bourassa, Steven C. "Land Value Taxation and Housing Development: Effects of the Property Tax Reform in Three Types of Cities." American Journal of Economics and Sociology 49 (January 1990): 101-111.

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An Immigrant on Liberty

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

An Immigrant on Liberty

by Lu Norton

October 26, 2003


I moved to America in search of Liberty. Twenty-three years of deprivation from freedom, individualism, and personal happiness ... Twenty-three years of strategic mental detachment from the madness around me, to keep myself sane. I had come to the point of giving up. But I was still breathing, and my mind still functioned ... clandestinely. Until the first day I set my feet on the "holy" land – The United States of America. A mere stamp on my foreign passport by the Immigration Officer meant one thing to me – Freedom. At that moment, the sweet taste of Freedom was for me still an ideal.

But ... as I remain, the reality unfolds. Despite of the abundance of goods, there is still government control – of businesses, schools, citizenship, professional licenses, animal ownership, property, even one's morality. Businesses are crippled or go bankrupt from taxes, environmental regulations, and zoning laws. Affordable, competent, private schools are almost non-existent due to the incompetent public schools' near monopoly on education. Professional licenses are required of the most able in society, such as doctors – and this affects the costs of the doctors' services. Licenses are also required of accountants, which affects the integrity and efficiency of their work. Animal ownership is regulated, requiring individuals to pay a fee for having their own pets. Private property ownership is regulated and taxed, in fact depriving individuals from owning their own private property. And morality is controlled, through drug laws, gun control, gambling laws, FCC-controlled radio and television stations, government anti-tobacco advertisements (paid for by money extorted from the tobacco companies), and public schools, with their advocates of socialism, collectivism, and nihilism. Their near monopoly on education is their means of teaching us what to think, of teaching us to be good little citizens who surrender our freedom to them.

If America is the best country to live in, if the rest of the world is so much worse ... where else then can an individual move?

This is not the America that I had always envisioned. A place where respect for the individual, finally, existed. America was free, years ago. But now that freedom is eroding fast. But why let it go?

I will not let go my vision of a perfect society. A benevolent society with a rational government. A rational government that respects individual rights. I shall work toward a freer society for myself and those whom I value. I am not alone – for a quest for freedom has always been man's quest. Therefore, I reach out to those able people who seek to live independently and rationally with each other. I seek out to those who are willing and able to work to change the course of an America which is heading toward the frightening reality of socialism. I seek those who advocate individualism, political freedom and capitalism. I seek those who are sincere and persistent with their goals.

You can be free – ACT NOW – and join the Free State Project. It is a plan in which 20,000 or more liberty-oriented people will move to a single state in United States – New Hampshire, where they will be active in the political system to lessen government interventions and lessen the burden of taxes. So much benefit will take place in the Free State when government interventions are minimized. This will be a real-life, practical step toward the creation of a society that acknowledges freedom and individualism.

This is your life and it's the only one you're going to get – do not let a free society remain just an unknown ideal. Work to make it a reality.

The Free State Project: An Introduction

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

From the LP of Minnesota Newsletter "Minnesota Libertarian" Volume 29 Issue 6, December 2001

The Free State Project: An Introduction


How much is liberty worth to you? Try to quantify it: what would you give up in order to secure real liberty, the kind we Libertarians have imagined everyone would enjoy in an ideal society? Would you move to another part of the U.S. if it meant you could enjoy that kind of liberty, and participate in building it? If so, the Free State Project may well be for you.

The Free State Project (FSP) is a plan whereby 20,000 libertarians, classical liberals, and other advocates of strictly limited government will move to a single state of the U.S. to set up a free society. We will do this by working within the electoral system, starting by eliminating unjust state and local laws and practices, like asset forfeiture, zoning, state drug and gun laws, socialized schooling, and so on. We could also end state police cooperation with federal agencies in enforcing unjust federal laws. Then we would bargain directly with the federal government over achieving sufficient autonomy in other areas; in Canada, for example, the provinces have won the right to opt out of different federal programs in exchange for a tax rebate. We will continue to pursue decentralization until we have created an essentially free society.

The way it works is that the FSP will collect 20,000 signatures from people willing to move. Once 5,000 participants have signed up, the whole membership will vote on the state to which we will move, following extensive research on the candidate states. Our preliminary research indicates that 11 states are theoretically small enough for 20,000 activists to win most state-level elections: Wyoming, Alaska, North Dakota, South Dakota, Vermont, Delaware, Hawaii, Montana, Rhode Island, Idaho, and New Hampshire. Don?t want to move to, say, Alaska or Wyoming? No problem: when you sign the Statement of Intent, you may indicate which states you reserve the right not to move to. The move only begins after 20,000 people have signed up.

What will make the FSP succeed where similar projects have failed is that: 1) we are researching the best place to go, rather than picking some arbitrary location; 2) we are relying on the decision of the membership, not one person?s fancy; 3) we are collecting signatures before the move.

The last is important because it means that there is no risk to signing up. If we don?t reach 20,000 signers, the move never happens. But if we do reach 20,000 participants, we will be on the brink of an achievement of historical significance.

To see if the FSP might be right for you, take a look at our website at www.freestateproject.org – and let us know what you think!

Free Jim Perry

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

Free Jim Perry

by Kat Dillon, 1/17/05

Fed up with high taxes and the Massachusetts nanny state, Jim Perry joined the United States' fastest-growing freedom movement, the Free State Project, and publicly broke his bonds from big government. To symbolize this event, Jim chained himself to a pole in Massachusetts at its border near Nashua. Freestaters at the event witnessed thousands of cars pouring in to New Hampshire from Massachusetts for sales-tax-free shopping. Jim remained chained for about an hour, holding a sign urging people to "Cut the chains of statism. --freestateproject.org". Compatriots in the Free State Project handed out flyers explaining the project and held signs:

"Escape to NH. --freestateproject.org"

"Honk if you love NH. --freestateproject.org"

"Now escaping Massachusetts"

Freestaters who had already made the move to NH then broke his chains, allowing him to make a mad dash to his freedom. Once there, he celebrated some of the freedoms one immediately gains when crossing the border: he destroyed a MA income tax form (NH has no state income or sales taxes); he drove a car without a seatbelt (NH is the only state without a seatbelt law for adults); and he openly carried a handgun, reveling in the freedom to protect himself and his loved ones.

Not all who attended the event were Freestaters. Two assisting in Jim's break for freedom were NH natives who welcome the Free State Project. They admitted that before they began working with the Freestaters moving to NH, they were ready to leave New Hampshire. Now they've decided to stay and be a part of Liberty in our Lifetimes.

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A Porcupine's Worth His Price

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

A Porcupine's Worth His Price
by John T. Kennedy

This article is reprinted from the No Treason web site with permission of the author

"The value or worth of a man is, as of all other things, his price.." - Hobbes

Government is a predator. Those who seek to secure their liberty face the problem of how to avoid being prey. Some look at the leviathan state and despair that they will never have sufficient force at their disposal to defeat such a predator. They need to learn from the porcupine.

The lesson the porcupine teaches is that you don't have to be strong enough to defeat a predator to avoid being that predator's lunch. It suffices to be an expensive meal.  Predators tend not to dine on porcupines because a serving of porcupine tends not to be worth the mouthful of quill that it costs.

In Price Theory David Friedman writes:

"... the essential objective in any conflict is neither to defeat your enemy nor to make it impossible for him to defeat you but merely to make it no longer in his interest to do whatever it is that you object to ."

Why do nations seek overwhelmingly to resolve disputes peacefully rather than by force? Because war is usually more expensive than it is worth to the party that initiates it.  The reason that Communist China doesn't take Taiwan by force is not that it cannot do so, but rather because China judges Taiwan will cost more than it is worth to take by force. Taiwan does not need to be anywhere near as powerful as the predator to survive, it just needs to be more expensive than it is worth to the predator.

Those who fought for American independence understood the lesson of the porcupine.  One of the most powerful symbols in the war for independence is seen in the Gadsden flag.

The message of the Gadsden flag is not that we can defeat all predators, but that we will cost them dearly. The colonists did not seek to be more powerful than the British, they sought simply to be too expensive for the British to rule.

Some advocates of anarcho-capitalism think that to achieve liberty from government we need to convince a majority or some critical number of people that anarcho-capitalist society will be better for them than governed society.

The porcupine teaches a different lesson - that men will be free from government whenever they become too expensive to govern.

This is the crucial insight which makes me optimistic about the chances for anarcho-capitalist society. I'm not optimistic about converting masses of people to accept anarcho-capitalism through any sort of rational evangelism. I'm not optimistic about persuading large numbers of people to be more moral or to use better judgment. But I am optimistic that in the long run people can be made too expensive to govern.

The Life of Freedom

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

The Life of Freedom

Whenever I think of freedom I think it looks a lot like New Hampshire. Because of all the freedom loving people who live here, this state becomes freedom. With the colors of the great outdoors, the free-thinking can do anything as long as it follows the two fundamental laws: do all that you have agreed to do, and do not encroach on other persons or their property. The taste of it is as sweet as a violet lollipop on a stick. Sappy and piney, the smell has a natural scent to it. Liberty has a way of making persons want to change the all-powerful government.

Kira Dillon
Age 14
New Hampshire

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My Last Date in the Nanny State

NOTE: The opinions and commentary expressed in this essay are those of the author and are an exercise of free speech. They do not necessarily represent the views of Free State Project Inc., its Directors, its Officers, or its Participants.

My Last Date in the Nanny State

by Dada Orwell

Okay I will come clean here right off the top. There's some bait-and-switch in the title of this article. Yeah sure, I did have a date last week, and yes it did involve the usual blank stares when I brought up the subject of freedom. But I'm referring more to a date on the calendar: July 14. It's my last business day at work before moving to New Hampshire. My last day to witness, in its full hideous glory, the bizarre NannyWorld into which we have all sunk.

Before I start let me say I have a high opinion of the people I work with, even the people I work *for.* They're great folks and a generally decent company. The dysfunctions I'm about to recount are not entirely their fault, not by a long shot. But they serve to remind us why we are evacuating our current homes in favor of the Live Free or Die State.

I work for a TV station, editing the pictures that enable producers and reporters to tell their stories. Since government offices are open this day, that is what half the stories are about. And today, like most days, no one seems to question the ever-rising waves of authority that wash over our state. Each report seems relentlessly submissive to "full-figured government."

I want you to have a seat at my desk for just a moment and see what I am seeing (and sometimes complicit in) this last business day at work. Let's look up at the monitor and take in the news.

For starters, it appears our city is losing a Saint...a giant among men. That is to say, a school superintendent who isn't in Federal prison or suing his own district. Even I can admit this guy is the least wicked of the evil. He'd better be, we taxpayers subsidize him to the tune of $300 grand a year. Anyway, he's leaving the ISD. Wait! They're listing his "accomplishments.." this could get ugly. Yep, there it is...."succeeded in passing largest bond issue (formerly 'tax increase') since the District was founded." Don't let the door hit your backside on the way out, buck.

Next it's time for me to tamely implicate myself in this company-wide crusade for Nanny Rule. I get to edit a story sounding the alarm about our national nursing shortage. Fortunately, the reporter has a solution to pitch: There ought to be a law regulating nurses! No mention of the overregulation that helped bring the shortage about in the first place. By the way does anyone even do stories anymore that don't end with "there ought to be a law?"

Now I slip over to the feed booth and take in a story from one of our bureaus. They may call it news, but this piece is more of a shameless advertisement....not for a company but for a local tax office. Seems they have bought - and are continuing to buy - aerial photos of every house and business in the county, then scanning them for evidence of property tax fudging. Big Brother really is watching! But there is no hint of concern in the report, just the basic admonishment that Government is Powerful and will catch you if you try to keep the money you earned. I shake my head and wonder aloud how this could possibly be considered a good thing. But everyone just stares blankly at me. I'm starting to get used to it!

The day goes on, filled with stories like this. Local animal shelter deserves more funding. GovSchool teacher complains of low pay but botches most of the grammar in her interview. City cops work to fight neighborhood crime though "joint operations" with federal bureaucracies. Whatever happened to my beat cop?

Fortunately the crime reports today are shorter than usual, just a murder or two. The police will get to it as soon as they're done ticketing the seatbeltless and "coordinating" with the Alphabet Agencies, cheer-led by us media hounds.

Be it known that there are no dark mandates from above forcing pliant journalists into today's Orwellian contortions of right and wrong. No conspiracies or political censorship of content. No punishments meted out against dissenters like me who occasionally suggest a different philosophy. And sometimes stories do get on that question the size and scope of government.

But not today. Today our reports favor the Nanny State because our staff is made up of average Americans, and average Americans no longer demand or even recognize freedom. The principle that government should limit itself to the defense of individuals from aggression and fraud...this principle is alien to them. Local viewers never demand it; local activists never push for it. If even one of them did, they'd have a good shot at airtime.

Eventually my day at work ends, after some heartfelt good-byes and kind wishes. I like my co-workers and bosses just as much as I disagree with them.

But my serfdom continues into the night. Waiting for me at home is a half-inch-high stack of papers. Is it a novel? An application for permission to build a rocket lab? No, just the governmental instructions and records I've collected in an attempt to prove my 82-year-old grandmother isn't an Al Qaida hijacker. We simply want her to be able to board a plane, but for that she needs government ID. To get *that* she must have...government ID. And like many old folks, she's lost most of hers. We may not be able to get the right documents in time to prevent a "Rain Man." Actchung! Papers please!

"It's crazy" says one of my other relatives, "It's like she doesn't even exist!" We've spent more hours trying to prove she's not a threat to aircraft than it would take to just drive her where she needs to go. And how much safer are we because of this? The Powers can stop my grandma from boarding, but it takes them two years to give a few pilots permission to arm themselves. And it may take them till the next century to streamline the security bureaucracies.

In any case, it is a fitting reminder of why I am taking this action, voting with my feet. We the descendants of the American Revolution, heirs of men who bled and died to stop a 3% tax, now find ourselves tamely governed by power-worshipping apparatchiks who can spy on our backyards, strip us of our livelihoods and bar us from transportation but cannot perform basic protective functions.

New Hampshire does not have to be a utopia to be an improvement on this. It does not even have to be livable. It just needs to be rightside up. It just needs to know that Slavery is not Freedom, that Big Brother should not be watching me and that my grandmother is not an Osama agent. That's enough.

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