Government Services Are not Otherwise Taxable
Even if taxpayers did receive full value in exchange for their tax
liabilities, COD income would still be inappropriate because government-provided
benefits are generally not taxable and their exclusion
is therefore unrelated to tax indebtedness."0 5 There are several
reasons why government services are not treated as income.
Many federal services are impossible to value and to allocate to
particular taxpayers. National defense, regulatory protection, and
scientific research are obvious examples. Even if such federallyfunded
programs could be valued and accurately allocated to each
taxpayer, the benefits would not be taxable under current law because
they are not accessions to wealth over which the taxpayer
has dominion and control and they are not transferable or convertible
to money or money's worth.
Other federal benefits which could easily be valued and charged
for are free simply because Congress has chosen to subsidize them
by failing to exact a user fee. Such benefits are generally not taxable,'06
but similar benefits are not taxable in the private sector ei ther. For example, admission to the (government-owned)
Hirschhorn Museum is free and has obvious value, but admission
to a privately-subsidized museum which charges little or nothing
for admission does not create income simply because other comparable
museums may require a high admission price. 0