How many times to I have to repeat--I am not speaking to the question of whether or not the homeowner was inside or outside the town limit.
I maintain that the question of whether townies have to pay a different price for protection as compared with their rural neighbors is a non-issue, precisely because variability in price for public services is already built into the system. Municipal taxes are based, primarily, on the assessed value of the property. If my house is worth $750,000 and my neighbors' house is worth only $700,000, I will pay more for public services than my neighbors. The rural homeowner served by my municipality who has a home valued at $150,000 pays even less (especially as his rate of taxation will also reflect the lower level of public services that he will receive in his municipality as compared with mine).
When these services are privatized, it has the effect of being regressive--which means that the privitization of public services belongs four-square inside the progressive/flat debate. It matters not one iota whether the cost for public services goes to government, flows through government to private delivery agents, or is purchased from a licensed private entity, it is still a public service.
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--James