Perhaps you’ve heard it said that taxes are theft. We work hard for our income, and the government just comes right in and takes the money that we earned without our consent! That’s stealing! The government steals. Now, the government can legally do many things that private individuals cannot do. It can confine and relocate people against their will. It can kidnap children. It can even commit violence if it deems it necessary for a safe society. However, the one thing people cannot abide over any other crime is theft. Nobody cares about foster kids, criminals, and immigrants, and so state intervention only matters where my finances are concerned!

Big Government when it comes to people I don’t like; small government when it comes to me
One of the more prominent libertarian thinkers that popularized the concept of illicit taxation is Robert Nozick in his book Anarchy, State, and Utopia (so titled because libertarianism, as an extreme reduction of state, is inherently anarchistic). Nozick presents a thought experiment which I will paraphrase in order to use really simple maths. You work 40 hours a week, making $100 an hour. You’re doing all right. That’s $4000 a week, but the government decides that it’s going to tax you 10% of your earnings, and takes away $400. What this essentially means is that for the last four hours of your work week, you’re working for free under the authority of the government. The higher the taxes, the more unpaid working hours. This isn’t just theft, it’s slavery! Maybe this is why people just fuck about on Friday afternoons, as a means of sticking it to the The Man for having to endure slavery wages just before the weekend.
While there are certainly problems with this argument, we’ll leave it as is for now.
Let’s turn to the feudal system. The peasant produces $4000 worth of goods, and has to pay his lord $400 each week. Similar to the slavery tax system illustrated above. Now, let’s mix it up a bit. The peasant is still producing $4000 worth of goods, but instead of paying the lord taxes, the lord collects the $4000, and pays the peasant $3600 for his labour. Ha! Ridiculous, right? Okay, let’s be a bit more realistic.
The peasant is still producing $4000 worth of goods, but instead of paying the lord taxes, the lord collects the $4000, and pays the peasant $400 for his labour.

If that. Isn’t it nice having a say in how taxation will affect the community? Democracy sure is great. I wonder if such a concept has ever been imagined in the second scenario?
If the peasant’s labour really only costs $400 a week, then the extra $3600 is what famed beard-haver Karl Marx called surplus value: money that is added on to the cost of production basically so the person (or minority of people) who own that production can continue to grow their wealth without having to actually do anything. In a word, profit. This money, more or less equivalent to the stolen taxes of our initial example, does not go to community projects, however, but to the pockets of a private owner.
The issue that people are going to take with my examples is likely going to be that of consent. So you might think, well, I didn’t agree to no social contract, why should I abide by it and pay these exorbitant taxes!? And you’re right, that is a legitimate criticism of the social contract theory. Abide by the social contract under which you are born or go to jail is not a meaningful choice in any sense. Social contracts are not inherently just, and resistance against them may be legitimate. Universal acquiescence is no form of morality.
What about our second peasant who is paid wages instead of owning his own labour and paying taxes? Nozick and other libertarians would say that they agreed to this contract with the lord, and if they don’t like it, they could quit and get another job as like a blacksmith or something. Nozick says that not getting a livable wage is like being rejected by the prettiest girl at the dance. Everyone wants to date the prom queen, but if that doesn’t work out, you just keep going down the list of available women until finally you get to the partner that is manipulative and abusive, and you stay with them because nobody wants to die alone. Again, this is a paraphrase of his argument, but he literally says that since it’s fair for women to reject us (he’s big into hetero masculinity), it’s fair for companies to reject us from livable conditions too. Kind of important to consider this the next time the libertarians in the alt-right talk about being entitled to women’s bodies.

Or the liberal media, apparently
Nozick’s argument makes all kinds of terrible assumptions. For example, ownership is often inherited or influenced by nepotism, even entrepreneurs typically come from already wealthy families, which would be the equivalent of the prom queen being passed down through the generations of prom kings rather than through any merit-based wooing process; women don’t have a systematic incentive to be abusive and manipulative the way profit-driven companies do; and nobody’s child will starve if their parent can’t get a date. If the dating system is rigged so that the suitor has only the most abysmal options available, and they’ll die if they don’t pick one, then the metaphor might be more appropriate. It would also make those dating shows that much more interesting to watch.

But this time, if you’re voted off, you can’t afford your kid’s desperate medical operation
If we acknowledge that the “choice” between accepting the social contract or jail is not a choice, then it follows that the “choice” between accepting tyrannical labour conditions or death is not much of a choice either. If taxation is theft, it’s not much of a stretch to use the same argument against surplus value. Both involve others profiting off of labour in which they take no part.
Except, in order for a community to function as a community, participation in its maintenance is required. Communities are a collective. It’s not something that’s debatable. Taxation is a fairly straightforward and simple measure to extract funding for that maintenance, and income tax is a fairly equitable way of going about it. Universal acquiescence is certainly dumb, but thinking for two seconds about how a community works and what that would require very quickly reveals the need for public options funded by the collective.
The theft of the ownership class has no other motive beyond personal gain. If you had to choose between one theft or the other, why are we so quick to pounce on taxes instead of the exploitation of labour? Denouncing the community while advocating greed is the whispered maxim of capitalists.

Maybe not so much whispered as shouted from the rooftops. Remember when unbridled avarice was considered a bad thing?
Or you could abandon both forms of theft and embrace true anarchism. Not the anarcho-capitalism of modern libertarianism, but left libertarianism. Libertarian socialism. Anarchy. Take it for a spin. See how you feel.