This is the problem here...Ron Paul isn't doing enough to help people understand
how the invisible hand works.
You just *think* every single government function can be done better by a private entity...but you can't possibly *know* it to be true. This is the Hayek's concept of
partial knowledge. You, me and everybody else...we all only have partial knowledge. You sure wouldn't know it though from reading this thread.
Part of the answer is in your hand, part of the answer is in my hand...and all these partial answers are held by the invisible hand. If it's true that every single government function can be done better by a private entity then taxpayers will boycott government organizations one by one out of existence.
Most of them won't do it because they hate the government...they'll just do it because they want to get the most bang for the buck. If they get the most bank for their buck paying the private sector for A, B, C then they won't pay the public sector for A, B, C.
Yes...the more people that fund the IRS...the more money the IRS will have to force you to pay taxes. What about your theory though? You say that every single government function can be better done by a private entity...so why would people voluntarily choose to fund the IRS? Wouldn't you just tell them about the private sector equivalent of the IRS? You know...the one that relies on the power of persuasion...rather than coercion...to encourage people to contribute to the common good.
Allowing people to choose which government organizations receive their taxes will highlight private sector supply failures. It will indicate a demand for a good/service for which there are no suppliers in the private sector. Therefore...pragmatarianism will offer you a precise road map to anarcho-capitalism. To arrive at anarcho-capitalism your mission will be to create...or promote...private organizations that supply ALL the demands of taxpayers.