You Claim "...there cannot be capitalism and government existing at the same time. Either one exists or the other, you cannot have both."
You must have either assigned "capitalism" or "government" to the world of Platonic Forms. Your statement shows an idealism that has lost touch with reality.
It has to be pure otherwise why call it Capitalism?
It's like if you have a chocolate cake with a donkey crap on it. It doesn't matter if it's 99% chocolate, that 1% crap really spoils it.
If you accept that taxation is theft, you cannot settle for 1% taxes. It's like saying, people will still be robbed, but only a little bit. Either people should get robbed or they shouldn't, there is no gray area.
It's a black & white issue, based on moral principles.
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