The Finch Formerly Known As Gold

28 December 2006

Robin Hood: Cheesehead in Tights

Persons of a libertarian stripe tend to define taxation as "legalized theft," a description that hasn't exactly caught on nationwide.

When the politicians start looking for methods of theft other than taxation, though, it's time to worry:

[Wisconsin State] Rep. Fred Kessler (D-Milwaukee) said today that the value of unused gift cards should go to the state treasury — not to the merchant — and that change will be part of a bill he'll introduce in the legislative session starting in January.

Kessler said millions of dollars a year go unused by gift card recipients, and retailers are allowed to book the unused values after the cards expire. He cited figures from Consumer Reports showing that 19% of all gift cards are not used because they are lost or expired.

Kessler called that a "windfall," which he said could be used to support schools, health care or roads. Under his bill, after a one-year expiration date on all cards, 80% of the value of unused cards would go to the state treasury. Merchants could keep 20% of the value of an unused card to pay for processing, Kessler said.

"I'd rather have people spend the money and use the gift card, but if they aren't, I'd rather the state get the money," Kessler said.

Um, Fred? This is theft. Period. And spare me the flapdoodle about schools, health care and/or roads: your moral compass doesn't have enough direction to lead your ass out of a paper bag.

(Via Hit & Run.)

Posted at 1:45 PM to Political Science Fiction


Time was, I was a rather strict, doctrinaire libertarian. One of the convictions I retain from those times is that taxation is never better than a necessary evil. As a friend of mine liked to say: we should make taxes just as we make war: with great caution and only when absolutely necessary.

The sole moral redemption for any sort of tax is a combination of the following attributes:
1. A genuine public necessity -- not a frill, a subvention, or a charitable impulse -- for which no private individual or organization will answer;
2. Constitutional or charter authorization for both the method of taxation and the activity to be funded by the tax;
3. Appropriate legislative enactment and limitation.

If a proposed tax fails to exhibit any of those three attributes, it is theft, though its promoters strain ever so valiantly to portray it otherwise.

Therefore: There's a lot of theft going on these days, under color of law.

Posted by: Francis W. Porretto at 2:33 PM on 28 December 2006

Kessler can osculate my gluteus. At Yippee-Ki-Yay World Headquarters, all gift cards are redeemed promptly. To fail to do so is like the hypothetical in the Geico commercial: we're not so rich that we'd rather keep our seat.

Posted by: McGehee at 3:17 PM on 28 December 2006

It's theft, but I bet it passes.

The average person hates the idea of big corporations making money at all, let alone by means a demagogue such as Kessler can easily attack. He'll try to make himself sound reasonable by citing the 20% he'd magnaminously allow the companies to keep.

Posted by: John Salmon at 7:41 PM on 28 December 2006

I've never understood why gift cards aren't redeemable forever.

Posted by: Mister Snitch! at 8:19 PM on 28 December 2006

I have a $25 rewards card from American Express, by dint of having spent some ungodly sum of money, and it comes with a list of caveats as long as your arm, unless you make a living as a power forward in the NBA.

One interesting sentence: "The shopping card should not be used to pay for taxicab, water taxi, or limousine services."

Posted by: CGHill at 8:38 PM on 28 December 2006

Wait until Kessler finds out most coupons are thrown away! Wow, think of the money "wasted" there, dude! I'd better contact him straight away.

Posted by: Jeffro at 9:25 PM on 28 December 2006

Just don't mention you have a couch, or he'll expect you to send him the change from under the cushions.

Posted by: CGHill at 9:34 PM on 28 December 2006

The legal notion behind this proprosal is what is called escheat. Property considered abandoned by its owner for a period of years, frequently 7 or more, is taken by the state through these laws.
This state rep's suggestion is far too quick on the take to suit any normal notion of the escheat laws.

Perhaps he was only thinking of the second syllable./f

Posted by: fritz schranck at 11:28 AM on 29 December 2006

Indeed. Oklahoma, in fact, goes to considerable effort (as in "putting out a humongous newspaper supplement twice a year") to locate possible owners before taking control of unclaimed stuff.

Posted by: CGHill at 11:41 AM on 29 December 2006

"I'd rather the state get the money."

Well, I'd rather *I* get the money, but I don't have the monopoly on legalized theft that the state has.

Posted by: Dan at 10:22 PM on 6 January 2007