Article Supports Federalism

Ron Holland has an interesting article on LewRockwell.com this morning that calls for a wholesale revamping of our current political system, in effect modeling ourselves after the Swiss. The change he has in mind is to transfer most government functions back to the state level.

"The European Union and the United States should consider the successful freedom model of Swiss confederation government rather than the failed top down examples of other nations and empires. Few would question that Switzerland is the most secure, stable, and freedom-oriented nation in the world but it is time to ask what is so unique about the Swiss."

What is truly appealing about such a change is that states would be forced to compete with each other for people, resources, etc., thereby truly embracing a free market approach.

"In Switzerland the vast majority of taxes are collected at the canton (state) level while the federal income tax level is quite small and comparable to state tax rates in the United States. This allows different cantons and even localities in individual cantons to dramatically compete for residents, corporations, businesses and even retirees.

The tax difference can range over 20% of income from high-tax cantons like Zurich and Geneva to low-tax jurisdictions like Zug. Tax competition keeps the cantonal governments lean and productive and the politicians honest. Retirees from outside Switzerland can even create a type of low-bid competition for a set amount or percentage tax rate between cantons. This is the ultimate in tax competition."

Short of outright secession by states, the Swiss system of government is better suited for the 21st century, where some citizens increasingly demand more from the federal government, while others understandably resist being the ones who have to pay for these services. A Swiss system would allow those who wish to live under an over-arching local government that provides higher levels of services could choose to live under the auspices of that state, while those who prefer a much leaner approach could live under the auspices of another state.

Surely this approach is better than the current top-down approach, where everyone is required to pay in and be subject to a political system that some have lost all faith in.