Voluntary taxation is a theory that states that taxation should be a voluntary act.

Under the
theory, people should have the option to pay taxes instead being forced to pay taxes by their
government. Under this theory, people would control how much they pay and where they spend
it. The theory is a part of Objectivist politics and many libertarian ideologies. Proponents of
some studies assert that individuals will give to government, paying voluntary taxes to support
specific functions. Donations average 22 percent of an endowment to government, and 27
percent to private nonprofits, and are influenced by their cause, level, and perceptions of
effectiveness and efficiency.[1]

State lotteries are an example of a voluntary taxation system.[2]

The American federal income taxation system is sometimes called a "voluntary" taxation system.
Marjorie E. Kornhauser writes, "Most people never pay their taxes voluntarily, in the ordinary
sense of the word. Rather, they are generally anti-tax, in that they usually would prefer to keep
any income they receive than pay it to the government in taxes. Voluntary, in the context of
taxation, simply means that people do not have to be compelled to pay their taxes through actual
enforcement actions by the state."[3] The "income taxes are voluntary" argument has not
prevented U.S. residents who did not file tax returns or pay taxes from being prosecuted and
convicted for tax offenses.

Lysander Spooner stated, "It is true that the theory of our Constitution is, that all taxes are paid
voluntarily; that our government is a mutual insurance company, voluntarily entered into by the
people with each other; that each man makes a free and purely voluntary contract with all others
who are parties to the Constitution, to pay so much money for so much protection, the same as he
does with any other insurance company; and that he is just as free not to be protected, and not to
pay tax, as he is to pay a tax, and be protected. But this theory of our government is wholly
different from the practical fact. The fact is that the government, like a highwayman, says to a
man: Your money, or your life. And many, if not most, taxes are paid under the compulsion of
that threat. The government does not, indeed, waylay a man in a lonely place, spring upon him
from the roadside, and, holding a pistol to his head, proceed to rifle his pockets. But the robbery
is none the less a robbery on that account; and it is far more dastardly and shameful. "[4]


Here is an example of how a voluntary taxation system could function.

A state would distribute tax forms that could be filled out by recipients. The forms would
describe options which the recipients could designate preferences as to how the recipient would
like his or her money spent. For example, there could be a section for military spending, or
separate sections for defense in general and specific conflicts in particular. There would also be
sections to be for elected officials (who would still be necessary to carry out the wishes of the
people) and also sections for charities.

The form would be divided into more and more sections so that people could specify their
decisions. The entire form would be under the category of general. Then there could be a section
for education and then even further for elementary school education. People could choose which
sections they wanted and contribute to those sections. For example they could contribute
different amounts to each section of education or to the section of education in general, allowing
their elected officials to decide the best way to allocate the money.

Support[edit]
The arguments for this theory are as follows:

It allows greater freedom.
It performs both the function of collecting money for the government and allowing the
population to decide where money should be spent. It is similar to allowing everyone to vote on
government spending except that it is in a different format.
It allows government officials to easily keep track of the wants of their voters and the nation as a
whole.
It allows people to vote directly in a sense. For example they can decide that everyone should
have health care by contributing to that section.
Criticisms[edit]
The arguments against this theory are as follows:[citation needed]

The government would suffer because it would not receive enough money.
There is a chance that few, if anybody would pay taxes resulting in a lawless society.
People with money would have a greater say in government than those without money.
The forms would be difficult to create to adequately have every option that everyone would like.
An option for "other" could become out of control in large nations.
This would give the public a greater share in the legislation process, which could lead to what
has been called "mob rule".
The extent of freedom is relative to amount of money one has and as disproportionate wealth
insures greater freedom, oppression is likely to occur to maintain that system for the sole benefit
of the wealthy at the expense of the poor.

Claim: Payment of U.S. federal income taxes is voluntary.


FALSE


Example:

A great Constitutional expert has researched the evil mechanisms of the IRS and discovered what
techniques and principles they use to enforce a tax, which they have declared as voluntary. The
tax collectors use a sneaky lawyer trick known as the principle of sub-silentio or "silence
condones consent."

Failure to deny is in effect an admission!

The IRS frightens citizens into believing that they must file income tax returns, but officials
privately admit it is a "voluntary" tax. It's all a bluff and people pay because they don't realize
they have the right to just refuse.


Origins: One of the many arguments put forth by tax protesters is that payment of federal
income taxes is "voluntary," a claim based (in part) on the fact that the Internal Revenue Service
uses terms such as "voluntary compliance" in describing the federal income tax system. Since
that system is "voluntary," the protesters maintain, no one who does not want to pay income tax
need do so anyone who recognizes this fact can simply opt out of paying

Common sense dictates that if paying income tax really were voluntary, that tidbit of information
wouldn't be known only to a small cadre of tax protesters while


millions of other Americans annually forked over considerable amounts of money they weren't
obligated to pay. Indeed, the specious claim about "voluntary" income tax payment is based upon
a misinterpretation of how the IRS uses that word.

When the IRS employs the term "voluntary" in reference to taxes, it uses that word to describe
the behavior of the taxpayer, not the tax itself. The U.S. income tax system is not predicated on
the federal government's determining how much taxpayers have earned, calculating the amount
of taxes they owe, and sending out bills for the amounts due. Instead, it is up to each taxpayer to
volunteer his earnings information by filling out and submitting forms documenting his income,
to determine on his own how much tax he owes, and to make the appropriate payments. But in a
legal sense, neither the obligation to file of tax returns nor to pay taxes owed is voluntary: those
requirements are specifically spelled out in Title 26 of the U.S. Code, particularly Section 6151:
Except as otherwise provided in this subchapter, when a return of tax is required under this title
or regulations, the person required to make such return shall, without assessment or notice and
demand from the Secretary, pay such tax to the internal revenue officer with whom the return is
filed, and shall pay such tax at the time and place fixed for filing the return (determined without
regard to any extension of time for filing the return).

Voluntary Income Tax
Definition: "A system of compliance that relies on individual citizens to report their income
freely and voluntarily, calculate their tax liability correctly, and file a tax return on time,"
according to the Internal Revenue Service.
The income tax system is voluntary. That's because people are free to arrange their financial
affairs in such a way to take advantage of any tax benefits. Voluntary does not mean that the tax
laws don't apply to you. Voluntary means you can minimize your taxes by taking advantage of
various deductions and tax credits.

Voluntary also means that you must tell the IRS what your tax liability is. And the only way to
do that is to file a tax return.

Marcos Administration

The appointment of Misael Vera as Commissioner in 1965 led the Bureau to a "new direction" in
tax administration. The most notable programs implemented were the "Blue Master Program"
and the "Voluntary Tax Compliance Program". The first program was adopted to curb the abuses
of both the taxpayers and BIR personnel, while the second program was designed to encourage
professionals in the private and government sectors to report their true income and to pay the
correct amount of taxes.