This should be the way it is. The government agencies would be treated like business entities and people could pay for the "services" they want. Granted, some agencies like the military would cover everyone - whether the people paid or not, but hopefully with a well educated and properly rational society, people would pay what is needed for theses services. If people slack off on paying - the service is probably not that necessary or the people have a problem with how it is being ran and operated.

Convince us we need the service, show us that it is being run properly, and people will pay. The same thing should apply to all taxes - including property taxes (real estate and personal property), state income taxes, etc... So long as there are any mandatory taxes, we are slaves and own nothing.

There is an extensive existing literature on this subject: Morris and Linda Tannehill "The Market for Liberty"; Rothbard "For a New Liberty"; David Friedman "The Machinery of Freedom", etc. They all rely heavily upon voluntary payments, user fees, ostracism, arbitration/mediation agreements, insurance and restitution enforced by competing defense agencies . Rand opposed the whole idea of competing governments and never directly commented on the other mechanisms to my recollection. Also, see Hospers treatment of the issue in "Libertarianism."

If we are to make a credible case to the public in favor of a society with no compulsory taxation, we must first work out in much more detail how such a system could be put into practice and how it would be adequately financed.

I'm intrigued by the idea of all voluntary taxes. I can clearly see how outside dense urban areas fire departments could be privatized.

How does that work with police and military? It's seems like there's a large incentive for people to free-ride, saying they don't want/need the service while benefiting from other people paying for it.