Aren't taxes just too high?

[bluesbassman]

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What government functions/services are people willing to have cut back (or eliminated) in order for taxes to be lowered?

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All of them, except for:

1) Police
2) Small reserve military
3) Judiciary

Then we can talk about privatizing the preceding three as well.

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Do you think that this is realistic for a country this size?

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It's not a matter of "size" but rather of the dominant political philosophy.