Tax Resistance means refusing or resisting paying taxes due to opposition with the institution that is collecting tax or with some of the policies of the institution. The Resistance of Tax has come mainly from people who are conscientious objectors and also from pacifists.
The technique of Resistance Tax is used by people who decide not to fund the violent activities of the government and it is also used by the people who follow the movements of non-violent resistance. Unlike the protesters of tax who deny that they have the obligation to submit tax, Tax Resistors realize that the law orders them to submit taxes but even then they resist paying taxes. There are various arguments for Tax Resistance such as that the government is involved in destructive, immoral, and unethical activities like capital punishment and war and so paying taxes will fund all these activities. That the government has no legal right to a person's money and so tax amounts to slavery or theft.
Another argument for Tax Resistance is that the government that is in power is full of corruption for it serves only its own needs. Tax resistors have also opined that the government is wasteful and inefficient for it provides insufficient returns on the tax that is collected. Further, they also claimed that the government in power is illegal for they have come to power by unfair means. The arguments against Tax Resistance are that if in a democracy people only funded those decisions which they go with then this would undermine the government. Also, if people resist paying taxes then the taxes would be left unpaid as a result of which the government would be forced to take money from other people, which would be unfair to them.
Further, the arguments against Tax Resistance are that it is too ineffective and passive to bring about a political change. It has also been opined that individuals who do Resistance of Tax are actually free-riders who benefit from the various services of the government such as security and road infrastructure without paying their part of tax. The government, in order to check Tax Resistance applies interest, penalties, or fines against Tax Resistors.
The various methods of Tax Resistance are:
- Paying tax under protest
- Tax avoidance
- Redirection
- Refusing to pay specific taxes
- Tax evasion
- Reducing income and expenditure