What does it stand for?

The paragraph below is from a book, Is Democracy Possible Here?

In this text, the underlined it seems hard to figure out what it stands for.

In a way it seems to represent “paying taxes,” or in another, it seems to represent otherwise.

Can you tell me what it is?

But we do not, at least most of us, count taxation as a constraint on liberty. Sometimes paying taxes does seem like an insult to self-respect; it seems that way to Henry David Thoreau, for example, because he objected strongly to how their taxes would be used. But most of us, most of the time, do not regard paying taxes as an indignity or an insult to our power to choose our own values. How shall we clarify the basic principle of personal responsibility and the liberty it requires so as to recognize these important limits to the right to live according to one’s preferred values?