There is no Free Lunch

Reducing property taxes for homeowners has become popular in red states. Florida Gov. Ron DeSantis is backing a plan to phase out non-school property taxes. As a part of his re-election campaign, Texas Gov. Greg Abbott is proposing a constitutional amendment to eliminate school district property taxes for homeowners along with four other measures to reduce property taxes.

Local governments are concerned that reducing property taxes will create significant budget shortfalls, resulting in service reductions or new taxes. And this will require voters to face the fact that there is no free lunch. Every service provided by the government requires money, and the government’s only source of funds is taxation. If voters want lower taxes, then they must accept a reduction in services.

As I show in my book, Individual Rights and Government Wrongs, other than the police, courts, and military, every service provided by the government can and should be provided by the private sector. And the legitimate functions of government can be funded through voluntary means. For details, see my chapter titled “Government Without Taxation.”

Abbott argues his platform will provide people with “the opportunity of freedom to live their own life.” Reducing or eliminating property taxes will expand freedom by allowing taxpayers to spend their money as they choose rather than how government officials dictate.

The values desired by individuals are not monolithic. Some prefer parks, and others prefer the mall. Some like baseball, and others like ballet. No matter the values we pursue, there are costs associated with attaining them. Just as we should be free to choose the values we seek, we should be free to choose whether we wish to bear the costs. When the government provides parks, libraries, or any other illegitimate service, the latter choice is removed. We are forced to provide funding regardless of our own values.

Freedom means the absence of government coercion. It means that people can live as they choose, so long as they respect the freedom of others to live as they choose. Freedom enables people to pay for the values of their choosing rather than being forced to pay for things they don’t value. And it removes the pretense that there is a free lunch.