Social contract, or theft?

Leftists sometimes "argue" for taxation by using the term "social contract". Democracy gets the same treatment.

But here's a nice little quote that puts things in perspective:

Suppose five robbers break into the home of a family of four. As the robbers are about to leave with the owners’ possessions, the owners object, on the grounds of private property rights. The criminals, being of a philosophical bent, are willing to engage in dialogue with their victims. Under the influence of Pipes, they are willing to hold a democratic referendum on the issue of whether or not it is justified for them to "take" the family’s household goods. The vote proves conclusive: five in favor (the thieves) and four against (the family members.) Would it make any difference if thereupon the gang stated that it was their intention to distribute their ill-gotten gains to the poor, and thus their motives were "benevolent"? Not at all. Theft is theft, and there need be no benevolence to it at all. (#)

I guess the "social contract" and democracy theory would say this: The family memebers in question happened to be in the same geographical are as the thieves, and have the bad luck of storing their the property in this area. When a number of voters greater than that of the property owners invaded the property, all discussions about who owns what and why came down to a vote, and like with democracy the winner takes all. Is that fair or just or just plain theft?