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RE: If taxation is theft (and it is), then what is tax 'evasion'?
Government cant exist without theft and force, they assume no risk for mistakes even if they did play the market (which technically they already do and poorly with the federal reserve, bonds and our currency in general) there is no accountability and no repercussions for failure. At the first sign of loss they would just increase the trading budget and keep using the same tactics, the same way they already do.
They could probably exist by taking donation, but it's most likely better to donate directly to a good charity to help the poor than a government.