Replace ALL taxes with Sales Taxes

D

Dennis

Staff Emeritus
1) All current federal, state, and local taxation should be abolished.

* (With the possible exception of import taxes - a subject I’m not yet
prepared to discuss.)

* Income tax may be illegal. There is a question whether the 16th
Amendment was ratified. If not, income tax already is illegal and so is
the IRS and all the judicial actions taken as a result of this apparent lie.
Just because the 16th Amendment is a fait accompli is no reason to
perpetuate the illegality.

* Income tax is unfair. Rich people pay a lower percentage of income
taxes than do the middle class because the rich make better use of tax
avoidance strategies.

- My wife and I are self-employed. Almost everything we do is
business-related so we may claim expenses to offset income. Our
income has dropped but so has our income tax burden (from $7,500/yr
to $1,500-$2,500/yr). Therefore, our after-tax income has dropped
very little.

- Not everyone can be self-employed. Middle class employees pay a
greater percentage of income tax than any other group. Therefore,
income tax is unfair by “punishing” employees.

- Two single people pay less tax than a married couple. Therefore, the
government “fines” people for getting married.

- Tax exemptions for having children? Why? People choose to have
children and should not be subsidized by the government.

* Too many business decisions are based on potential tax
consequences rather than market-related factors.

* Americans have no understanding of the true cost of our
government.

* The government itself has no idea what all the taxation rules are,
how to implement them, how to enforce them, or what all these actions
cost taxpayers.

* Current taxation is capricious, and horribly expensive to implement
and enforce. Eliminating all current taxation policies would save the
country billions of dollars.

---------------------------------------

2) The federal, state and local governments MUST have money to
implement their goals. This should be done with sales taxes.

* Sales taxes are simple. Replace the current convoluted taxation
mess with a “you use it, you pay for it”.

* Sales taxes work. State and local systems already are in place
nationwide. Just add a National Sales tax to the current, working
system.

* Sales taxes are understandable. Every time we would buy something
we would understand what our government costs us. Americans would
tend to pay better attention to the financial activities of our various
governments.

* Sales taxes are the cheapest taxes to implement and enforce.

* Sales taxes are the least intrusive into business and personal affairs.

* Sales taxes are equitable to all Americans (only those who “buy” are
taxed).

* Savings would NOT be taxed, therefore savings would increase.

* The complicated systems of “retirement plans” would be eliminated.

* Many accountants would not have to find productive work! ;)

* Sales taxes eliminate the “marriage penalty”.

* Sales taxes would no longer “pay” people to have children.

* Home owners would no longer be “fined” with a tax increase for
improving their homes.

* Necessities such as food could remain untaxed to reduce the burden
on low-income and fixed income Americans. This would be fair because
it applies to the rich and poor alike.

* The poor would be little or no taxes because they buy mostly
untaxed “necessities”.

* Renters would no longer be paying landlords taxes. Rents could be
reduced (through competition) and landlords would still receive their
profits.

* Businesses would react more to market needs than taxation
avoidance.
-------

By the way, do NOT ever fall for the VAT (Value-Added Tax) concept.
You end up paying tax upon tax and the total cost is still hidden from
the user. I’ve lived under it (in Germany). It’s bogus to the max!

I know this type of subject has been discussed many times by brighter
people than I am; but the conclusion always was based upon
intimidation by the speaker.

I’d be beholden to those willing to help me hash this out in a rational
manner.

----------------------------------
Thanks to Fubsy for starting this subject!
----------------------------------
 
Dennis,

Looks like we've finally hit upon a point of disagreement. Took long enough, considering we're a couple of belligerent micks, eh? ;)

I don't see why the gummint, on any level, should be entitled to a cut of a private transaction. Whether it's 10% or .01%, bureaucrats have nothing to do with production, transport, or sale of the item in question.

What I suggest is solely a tax on imported goods. That would, I think, encourage people to buy domestic, bolstering the economy without making us more beholden to the feds.

Pardon my ignorance; economics is not my area of expertise. About the only thing I do well that I also enjoy is shooting. :)

------------------
A vote for the lesser of two evils is still a vote for evil.
Vote Libertarian - For A Change.
 
Coinneach,

Well, I'm no economist either so it's info I'm looking for! I haven't been sold 100% on any fact except the government DOES need money to do its job. The current system stinks so I'm trying to find a replacement.

I'm uncomfortable with the entire subject of import taxes.
- I don't think we could raise the funds needed for legitimate federal expenses with import taxes alone. If we tried, gasoline prices (for example) might go out of sight!

- Import taxes can be used as a weapon against countries who severely tax our goods. For example, Japan had a huge tax (100%??) on U.S. goods sold in Japan while we barely taxed Japanese goods. I don't have all the facts on import taxes so I'm setting that one aside for the moment.

PS. If we disagree on this subject, let's discuss it, resolve it, (even ignore it if we must) and then go shooting!! :D
 
Hmmm... so 10.50 for a box of shells... locals sales tax, 10.80, federal sales tax, 12.75...

Nope. I dont like it. Dont think this is just 1 box of shells - get your last grocery slip... that would add up REALLY FAST!

Not liking that at all... sh!t is too expensive no as is!

------------------
"But I don't want to go among mad people," Alice remarked.
"Oh, you can't help that," said the Cat: "we're all mad here. I'm mad. You're mad."
"How do you know I'm mad?" said Alice.
"You must be," said the Cat, "or you wouldn't have come here."

RAGE AGAINST THE MACHINE
The Critic formerly known as Kodiac
 
Taxes = Protection Money

Akin to paying money to mob goons to keep rival gangs off your turf.

Here's some ideas for getting things right again...

First, abolish every governmental department, agency, commission, etc. that violates the U.S. Constitution (which by the way, would include about 85% of the current Big Brother monstrosity). Abolish the Federal Reserve, reinstate the gold standard, and resign the U.S. from the UN and remove any foreign troops from U.S. soil. Then, sell all of the property (resulting from these abolishments) to U.S. citizens at a discount to fair market value. Use that money and any other surplus funds for a tax rebate back to the American taxpayers.

Next, repeal all un-Constitutional laws, acts, treaties, regulations, policies, etc. etc. Then, remove any elected official from office that have usurped or violated the Constitution in any way, or violated his/her oath of office, charging them accordingly with treason, corruption, conspiracy, etc.(this should be fun!!!). Those found guilty after a fair trial will be publicly executed. Now, the remaining 2 or 3 politicians that are left can go home too, since they have been polluted by the former corruption of the system. During this "royal flush", an interim "government" will be maintained by citizen volunteers who have illustrated a reverence for the U.S. Constitution, and will be chosen personally by the most conservative Supreme Court Judge.

Indict all major media corporate officers and heads of tax-exempt leftist foundations for corruption, usurpation, and conspiracy and hold them in federal prisons without bail. Those found guilty after a fair trial will be publicly executed.

Each state will hold a new election for civil servants as defined by the Constitution. No candidates will be allowed to televise their campaigns. All candidates must present their campaigns in public forums in person without body guards.

A president will be elected separately from those elected from the state's elections only after the candidate has served one year in congress without violating his/her oath or the Constitution.

Any member of congress that violates his oath or the Constitution will be immediately charged and removed from office.

Prison and judicial systems will be reformed. Inmates on death row will be immediately executed. All criminals will be prosecuted to the extent of the law, imprisoned, or executed per sentences.

American citizens will exercise their God given rights without intrusion from the government including carrying firearms concealed (or open). The military will be strengthened, removing all liberal policies implemented by former corrupt politicians. Our borders will be sacred and protected. Conflicts with foreign governments will be handled diplomatically and without military intervention until such time as our national security is threatened. Any threat to American sovereignity or security will be handled swiftly and directly.

Government income will be obtained through investment, corporate taxation, and recalling of loans to foreign nations. Federal budget will be balanced and any surplus income will be returned to those who paid it.

Ahhhhh... Free at last!
 
Those found guilty after a fair trial will be publicly executed.

Method?

------------------
A vote for the lesser of two evils is still a vote for evil.
Vote Libertarian - For A Change.
 
George,

If the manufacturer didn't have to pay employment taxes and all the other taxes to stay in business, the price would drop substantially due to competition. Therefore, prices would drop and the cost of consumer goods to you would be the same or less.

"Less" because the government could reduce costs of enforcement, eliminate the entire IRS, etc.

As far as groceries go, as I noted, food and other selected necessities could be sales tax free. The cost of groceries would DECLINE - again because of no hidden tax that currently is in even our "tax free" items. If you pay one dollar for a head of "tax free" lettuce, I'll guarantee 30% to 50% of the dollar is hidden taxes.

"Less" because the government would be forced to justify its expenditures more than currently.
--------------

All,

How would you like to get your entire paycheck? Now, if you earn $100, you are taxed whether you buy anything or not! If you put your money in the bank, you are taxed on any accrued interest whether you take the money out or not.

With a sales tax, you get paid what you earn. Okay, so I guess we'd still have Social Security to pay (that's next on my agenda of crap to phase out over time!)

You would bring home more money, you would have NO property tax to pay, prices would be much lower (by eliminating hidden taxes) and you would be aware of the cost of your government EVERY time you bought something.

Think that might wake up Americans?

Overall taxation would be reduced:
- no hidden taxes.
- greater accountability of public funds.
- less tax enforcement structure to pay for.

I'm telling ya, folks. It sure seems to be better than what we have now.
 
Here's a site ya'll might find of interest.

Dennis, is this where you got your information?

http://www.fairtax.org/home.html


BTW: They are having what they call a "FairTax Town Hall Meeting" in Phoenix August 25th 6-7pm at the Holiday Inn Select (4300 East Washington Street)
RSVP call: 1-800-fairtax(324-7829)

------------------
John/az

"The middle of the road between the extremes of good and evil, is evil. When freedom is at stake, your silence is not golden, it's yellow..." RKBA!

http://www.countdown9199.com


[This message has been edited by John/az2 (edited August 18, 1999).]
 
Paul Revere, you have said it correctly right to the tee. The private bankster Federal Reserve System is the linchpin around which this entire corrupt corporate slave system operates. You forgot to mention trials of these private bankster families who,have raped the wealth of America since the early 1900's. The world wars, income tax system,fiat money and HUGE national debt will be charged to these FRS families. It is nice to dream because this nation jumped over the cliff years ago and is nearly at the bottom. When you mention Federal Reserve System and the Irs to the sheeple ,they just show their ignorance by exclaiming: But its the best system in the world!
 
Paul Revere,
Well, um, thank you, I guess. At least now nobody can attack ME for being "radical"! :)

John/az2,
Nope. I hadn't seen that site. Only going on a discussion our class had in college. We worked on it (a class of some fifty or so students) for about a week. Came to the conclusion that people would pay less taxes, both government and business would become more effective and efficient, the prices of food and other necessities would actually decline some, and our country could get back to the idea of being productive rather than avoiding taxation.

All,

Just don't ever fall for a VAT (Value-Added Tax). I saw it at work in Germany. It is confiscatory (at best).

By the way, one of the good aspects of a straight sales tax scheme is that it is a flat percentage for nearly all goods and services. So the government could not raise or lower taxes to meet social goals. No 10,000% tax on guns and ammunition, for example.

The would be non-taxed goods (e.g. food, household necessities, medical prescriptions, maybe others) and non-taxed services (e.g. medical care, maybe others).



[This message has been edited by Dennis (edited August 18, 1999).]
 
Interesting ....

Our idiots in the Federal Government just voted to introduce an Australia-wide GST (Goods and Services Tax) -- a VAT by any other name -- from 1 July next year. It is set at 10% to start with.

The suckers who fell for it proclaim, "But look, it's the only way to ensure people pay a fair share of taxes".

Yeah, right. Consider this: Income tax threshholds will be increased to offset the GST --- but no provision has been made for salary "creep"; in 5 years we'll be paying the same tax we are today PLUS a 10% GST.

* The family home is to be subject to GST. If I sell my home for (say) $400 000, I then write the govt a nice check for $40 000 and mail it off to them. (The seller has to pay this.)

* Firearms and ammo here are subject to (IIRC) about 32.5% sales tax. Replacing that with a GST of 10% would drop the price, right? Well, no, actually -- because the Govt intends to add a 25% "Luxury tax" on top -- so firearms and ammo will be more expensive!!

* An uncooked chook = no GST; a whole cooked chook = no GST; cooked chook pieces = 10% GST -- it will be a nightmare!!

* School textbooks ordered by a school = no GST; school textbooks ordered by a parent or teacher = 10% GST -- go figure that one (note that there is NO sales tax currently on schoolbooks).

And isn't a wonder how they managed to get the system up and running before the Sydney 2000 Olympic Games!! All those tourists paying that extra 10%; it's luvverly!

As Dennis said -- don't fall for it!! Ask NZ -- it's just about paralysed the economy there.

B
 
Jude Wanniski is the best on web teacher of economics. Read his stuff on Drudges page(bottom). Read the Way the world works.

[This message has been edited by G-Freeman (edited August 19, 1999).]
 
Dennis-

Radical? I will assume you were being sarcastic. I always like to look at how our founding fathers would change our government if they saw what has happened. I don't think they would be as "nice" as I was.

Ivan-

The Federal Reserve System currently control everything in the U.S. because they control "our" money. They hold the paper to the national debt. The stock and bond markets reel at the whispering of Alan Greenspan. For those that think the stock market rallies (or slides) have anything to do with the current or past polictical administration, let me point you to one economic fact...each rise and fall in the stock market has been historically preceeded by action taken by the "Fed", not the president of the U.S., not the congress, not even corporate earnings. The Fed controls everything...and therefore, they must be abolished in order to regain our American Constitutional system.
 
Dennis: Not long back, I calculated my total tax burden as if I were still working for the good old State of Texas, living in Austin, with the proverbial wife and 2 (.3?) kids--pretending I was still under 50.

The biggest two identifiable chunks of tax out of my paycheck were FICA and local school taxes on property.

One of the reasons that national polls show "lower federal taxes" as a low-priority item is that the majority of all income taxes are paid by the top ten percent of earners. Joe Sixpack, nationwide, doesn't really notice the withholding, and it's typically some 12% of his gross income. Many people rely on their annual refund from IRS...

Regardless of any illegality of an income tax, no federal judge at any level would vote to end the source of his paycheck. Pardon my cynicism...

I have read analyses that a national sales tax would have to run some 18% in order to maintain present governmental income. A flat tax on income would be about the same.

Mildly, I favor a mix. A ten percent on all income above, say, $10,000 (whatever) per year. A national sales tax of, say, 10% on all items costing over $20 (whatever) with exemptions for all non-restaurant food and all medicines.

My personal opinion about improving both taxes and the condition of the country would be to abolish the Dept of Education. I believe its policies have forced the higher school taxes we've seen since around 1962 and have dumbed-down our school systems...

Last, if all states went to court over unfunded federal mandates, as did some sheriffs over Brady (10th Amendment), we'd see one hellacious reduction in our local/state taxes, even under the present system.

In the meantime: Study IRS' Schedule C. Be creative in your thinking. For instance, I built a few race-motors for other people during my racing years. So, my own race car was advertising for my talents at engine building; I wrote it off as a sole proprietor under Schedule C. Parts, tires, motel rooms and entry fees were write-offs. All legal. The "big boys" write off (depreciate) their Indy Cars in one year; I used two years...

Somehow, I never turned a profit. My losses were written off against other income.

So, make your hobby a business, to the greatest extent possible. Do your 8 to 5, and figure out what legal enterprise can be a business, but "lose" money while you're having fun.

For instance, buy a run-down house in a "fun" area. The fix-up is deductible, on a rent-house. Every trip to do repairs is deductible--and you can catch up on fishing or skiing. Gotta fight with a renter, to collect? Deductible trip.

In other words, learn the system and use it to your advantage. During this time, you can lobby for whatever improvements suit you, as to tax structures and all that...

It takes no talent whatsoever to sit around and let your self be taxed and taxed and taxed...

FWIW, Art
 
Paul Revere is no radical. Sounds to me as if he would simply like to return our Federal Government to its roots -- the Constitution. Our Founding Fathers were very explicit (in the Preamble) as to the duties and responsibilities of the national government...things our government overshot a LONG time ago.

Thomas Jefferson would, I think, agree with most of what Mr. Revere wrote.

I hate to bring it up, but how 'bout a flat income tax, say 10% with no deductions?

BTW, if we did restore the federal government to its intended size, the federal gov. would not need nearly as much money as it takes in now...
 
Do you all realize that returning our government to its originally intended size would be like getting a heart transplant from a baboon?

I mean...realistically these current state of affairs have taken decades to evolve. Changing it back to what was intended WOULD be "radical". Because we've grown so accustomed to the status quo. People, I mean sheeple, would most likely put the skips to this rapid change, much like a spoiled baby clings to his blankie. This would most likely force subtle changes, which in my opinion, "would" be the status quo!

Like my mamma always said..."If you do it real fast, it won't hurt so much." Call me anything you want..."radical", or "right wing extremist", or "loon"...but what you should see behind this new radicalism is PATRIOTISM!

RKBA
FREEDOM
 
Paul Revere,
I guess I should have put "LOL" after my smiley face. I was chuckling while I
read your post mostly because I thought MY idea was going pretty far but
yours went much, much farther. Besides, as a Libertarian, I don’t consider
“radical” to be an insult! Sorry if it came across as such.

All,

We have gone pretty far from the Sales Tax concept, but I’ll address your
concerns.
-------------------
1) EXECUTIONS. I am looking for return to Constitutional law. Reform -
not vengence. The French and Russian Revolutions provide adequate
contraindications of such killing.

2) REFORM THE LEGISLATIVE BRANCH. Congress should:
- Permit only agreed-upon corrections to a bill - no amendments/ riders.
- Ensure each bill addresses a need that can not be solved at a local/state level.
- Put expiration dates on every piece of legislation (forcing reviews).
- Approve/revoke every Presidential Executive Order within 30 days.
- Approve/revoke directives of the executive branch within 90 days.
- Oversee Supreme Court decisions.
- Record every legislator’s vote for the public scrutiny.

3) REFORM THE EXECUTIVE BRANCH. Limit the power of the
Executive Branch and Presidential Executive Orders (by Congress, as above).

4) REFORM THE JUDICIAL BRANCH. If the Supreme Court refuses to
consider a case sent to it, the case should go to Congress for consideration of a
legislative response. No more stone-walling by the Supreme Court.

5) RESTORE JURY NULLIFICATION. Teach it in schools, colleges, and
universities. Force judges to completely inform potential jurors of the system
of Jury Nullification.

6) RESTORE OUR CONSTITUTION. All of it.

7) ISOLATION. We can reduce but not eliminate our international
involvements.
- Get out of NATO and the UN? Maybe. The world goes on. We might
want to influence such activities as best suits our national interests.
- We are the greatest importer of goods and materials in the world. We can
not be as isolated as we were centuries ago.
- Some American problems are international. For example, stopping plagues
in these days of international travel is not as easy as just saying, “No!”

8) NEED FOR MONEY. Our government will need revenue.
- “Sacred and protected” borders, military R&D, and certain federal programs
still require funding. (We can argue about which specific programs later.)
- Raise revenue in a clear and honorable manner so the people can see that
THEY, in FACT, are paying for these programs. Then citizens would put
generate more pressure to spend these funds wisely.

9) GENERATING REVENUE
- Sell off unnecessary resources. If we don’t/won’t need it - sell it. I agree.
- Collect what others owe us to the greatest extent possible and in our best
national interests. I agree.

10) GOVERNMENT INVESTMENTS? No. Definitely not.
- Government investments can be manipulated by members of government or
their friends (e.g. whitewater) to the benefit of office holders and the detriment
of citizens.
- Selling of bonds is government debt and should be reserved for real
emergencies - not normal operating expenses.
- Permitting the government to enter the stock market would be a disaster for
our country! Stock prices would be manipulated as a part of “policy” and to
line the pockets of government manipulators, their friends, and benefactors.
Keep the government OUT of private enterprise - including the stock market.
- Government is NOT an investment business - government is an expense!
They do not generate a dime - they only spend it. They should spend it under
our supervision.
- Government revenue usually is generated by the taxation of the
PRODUCTION of goods and services. It comes from the people who produce
things. Right now, most citizens have NO IDEA what they are paying in taxes.
A sales tax shows each consumer exactly what government costs.

11) AVOID HIDDEN TAXES. They are deceptive and counter-productive!

12) CORPORATE TAX. There is NO such thing as a corporate tax!
Don’t bite on that red herring! The taxes paid by corporations are included
into the price of goods and services and paid by the consumer. It becomes a
“hidden tax”. You think you know the price of something but you can NOT
see the amount of corporate taxes and fees included in the sale price.

13) INCOME TAX
- Personal income taxes also are a hidden tax on goods and services.
Employees must be paid enough to pay income taxes. The total wages and
salaries, along with corporate taxes, become part of the cost of producing
goods and services - which the consumer must pay.
- PROGRESSIVE income taxes are seldom truly progressive. With
exemptions, exceptions, and other tax avoidance methods, the rich pay a lesser
percentage of tax than do the middle class. A sales tax evens the playing field.
- FLAT income taxes hurt the poor most of all because they already are below
the poverty level. So, then you start with exemptions and exceptions and
you’re back building a needless bureaucracy. It would be much better just to
have NO sales tax on food, medicines, and other necessitites and let those
prices fall.

14) INFLATION. The cruel and sneaky tax! When governments print money
in excess of their gold and silver reserves it is phoney money. Ours is backed
only “by the full faith and credit of the United States Government”. All this
extra paper devalues our money because more money is in circulation. That’s
what “inflation” means - inflation of the money supply. It is NOT prices which
become inflated, they merely rise because of all the extra dollars in circulation
(the money supply).

15) VISIBLE TAXATION - the Sales Tax.
- I am adamantly against hidden tax of any kind. That’s why I prefer a sales
tax. It’s visible, unambiguous, easy to implement and control, hard to evade
and fair to everyone.
- Seeing what our government costs us would encourage us to become better
informed and participate more in the political process. We would more closely
scrutinize government’s fanciful expenditures! Accountability would be
increased! People would understand that there is NO such thing as
“government money” or a “free lunch”.
- A flat SALES tax can not be manipulated for any individual’s gain.
- A sales tax is discretionary and progressive. The higher your standard of
living, the more sales tax you pay. The lower your standard of living, the less
sales tax you pay. Remember, food, prescriptions, and some other necessities
would NOT be taxed. Therefore, without hidden taxes, the cost of those items
would actually decline. The fixed income people would be much better off
financially with a sales tax.

16) SALES TAXES LOWER PRICES. A Sales tax would NOT make goods
and services (overall) more expensive!
- UNtaxed items would no longer include hidden taxes and would
DECREASE in price.
- TAXED items would decrease in price because corporations would become
more efficient and competitive. There would be NO tax manipulations or
favoritisms to decrease price-cutting competition in the marketplace.
- If corporations did not have to pay all the different taxes they currently pay,
corporations could:
--- Fire most of their accounting personnel, reducing labor costs.
--- Make decisions based on market principles rather than tax avoidance.
--- Become more efficient by avoiding government intervention, inspections,
audits, reports, bribery, political donations, etc.
--- Decrease the price in the marketplace because of reduced cost of goods
sold.
------------------------------------------------------------
Remember, as consumers, WE pay all corporate taxes, donations, etc.
------------------------------------------------------------

17) SURPLUSES? We should BE so lucky!!!
- The government should have a “savings account” (for a rainy day) just as we
individuals should. Use surpluses to stay out of debt, have money for valid
emergencies and lower the percentage of sales tax when surpluses exceed
forseeable needs.
- Once we get our revenue and expenses out in the open, then (only then!) can
we create a balanced budget, eliminate debt, increase personal savings, and
thrive.
-----------------------------
Most of these thoughts are not mine. I have learned from all of you on TFL.
So, with that in mind, I am open to suggestions. (Be nice, Art! :D )
 
Well, Dennis, I'm convinced. Not that NST is a perfect solution, just the best one at the moment.

"Ask me to vote on it, I'll vote. Put it on a petition, I'll sign it." --Mr. Pink

------------------
A vote for the lesser of two evils is still a vote for evil.
Vote Libertarian - For A Change.
 
Alan Keyes just wrote about it:
http://www.worldnetdaily.com/bluesky_keyes/19990820_xcake_scrapping_.shtml

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Scrapping the slave tax


Why is it that those who work hardest to deny the
connection of "economic" and "moral" issues are also the
ones who use money to manipulate the moral lives of
Americans? The Bush/Forbes vote auction in Ames,
Iowa, last weekend was just the latest example of
corrosive big money at work in our political process.
What could have been a genuine and informative test of
grass roots support became instead a Roman circus of
dancing girls, free banquets, and deluxe free
transportation, as the money candidates worked hard to
import enough well-fed and happy bodies to pump up
their vote counts. The cause of self-government suffered
as a result, as even Lamar Alexander can attest.

In Ames, as in the political life of the Republic, money
matters precisely because of its effect on the moral
foundation of our life. Economic policy should be judged
first in view of its effect on the character of this people.
Let's turn away from the circus in Ames and consider
the relation of money and character on a larger, and
more important stage.

In case anyone is seriously tempted to be content with
the modest gestures toward tax cuts that Republicans
are chattering about in Washington, let's remember that
there is only one version of tax reform that is adequate
for a free country: We must abolish the income tax and
replace it with the tax system that was intended by our
Founders -- a tax system that leaves our people in
control of 100 percent of their dollars, reinforces the
deep habits of responsible liberty, and puts in place a
permanent and effective impediment to the unlimited
fiscal ambitions of our government.

Abolition of the income tax must be the premier goal of
moral conservatives in the area of tax policy, and we
must pursue this goal above all because of its moral
dimension. The tax issue is a moral issue because it
raises fundamental questions about the way American
citizens will insist that they be treated by their
government. The income tax is a slave tax, and
accepting it will eventually replace the American spirit of
ordered liberty with a materialistic servility. We should
eliminate the tax code, repeal the 16th Amendment, and
fund the government through tariffs, duties and excise
taxes (i.e., sales taxes) as the Founders intended for
good reason.

Most people already pay state and local sales taxes, and
so their implementation at the federal level would not be
the wild and risky innovation some opponents imply. But
even if it is difficult, the benefits would massively
outweigh the effort. Just for starters, restoring tariffs and
duties to their proper role will make foreign populations
who benefit from access to the U.S. market share the
burden of supporting the governmental system that
guarantees its existence.

But the important reasons lie deeper. Under a national
sales tax, our income will be exposed to taxation only
AFTER we make the decision about how to use it.
Instead of waiting upon the whim of politicians and
bureaucrats, we will control our own tax burden by
controlling the amount and pattern of our consumption.
And in larger economic terms, an excise tax system
would impose natural limits on the rate of taxation --
excessive rates would shrink revenue just as surely as
excessive prices shrink the revenue of producers of
consumer goods. The government's revenue from
taxation would depend on the voluntary choices of
millions of citizens, and a government that couldn't elicit
from those citizens their agreement to make taxable
purchases would simply have to do without the
corresponding revenue -- a tax cut "passed" by the
people directly, not the Congress! This is what the
Founders intended to be our economic situation --
ordinary citizens in the driver's seat of the economic
patterns of their own lives.

Liberty from the income tax would mean, of course,
liberty from the IRS. We would no longer have our
privacy invaded by a government that was interested --
officially and legally -- in rummaging about in our
business to find out how much we make, where and
how we make it, and what we do with it. These
questions used to be considered private business, but
now the government of this supposedly free people can
ask them at its pleasure, compelling satisfactory answers
with the threat of jail and confiscation. Such systemic
bureaucratic intimidation is fundamentally contrary to
any substantive notion of political liberty. By contrast,
under a sales-tax system we would not have to report
the facts of our individual economic situation or choices
to a living soul.

The servile presumptions built into the income tax
system have already had a deeply corrosive effect on
the quality and extent of the responsibility we take for
our own lives. The distance the income tax has already
taken us down the road to servitude can be
demonstrated by considering how rarely it is that we
even question the government's right to know how much
money we make. We blithely file our income tax every
year, straining to report with accuracy and completeness
to anonymous clerks at a federal agency matters that we
don't expect any but our closest friends to ask us about,
and which we probably would not discuss with our own
children. Has it occurred to us sufficiently to ask what
right or legitimacy there is to this fiscal exhibitionism?

The income tax is objectionable not only for economic
reasons, and because the Founders took care to
exclude it from the Constitution. It is also bad because it
is based upon a premise that destroys one of the
material foundations of privacy, and therefore of liberty.
How can there be political liberty if there is no sphere of
privacy beyond the reach of government? And how can
there be such a sphere of privacy without a protected
source of material support for it?

A free and vigilant people should never have tolerated
this totalitarian beachhead for a moment. The income tax
is an inherently communistic tax, precisely because one
of the prerequisites of freedom is a sphere of privacy. It
is based upon the premise of the preemptive claim of the
government to full knowledge of the material foundations
of private life. But when we allow any aspect of our lives
to be treated as intrinsically the concern of the
government, we implicitly accept the role of government
to judge and control that aspect. The only reason
government has to know about something is in order to
regulate and control it. And so in granting in principle
that the government has a right to know everything
about our economic life, we have granted its right to
control it as well. And if we intend to deny the
government comprehensive control over our economic
life, we will have to deny its claim to comprehensive
knowledge -- which is the essence of the income tax.

Inevitably, then, the decades of implicit acknowledgment
that we are not sovereign in our personal economic lives
have been like a universal solvent, dissolving the private
and personal resolve each of us should have to control
responsibly the actions we take in the acquisition and
expenditure of wealth. The habits of American liberty
run deep and have shown impressive resiliency. But
habits, though long-lived, can finally die. Eventually the
logic of the slave tax will work its way through the whole
man, and we will make our peace with servility. Unless,
that is, we root the thing out soon.

The issue is not the fairness or amount of the tax burden.
The tax itself is the problem. The income tax must be
replaced with a tax structure the first premises of which
are the capacity of American citizens to make their own
economic decisions responsibly, and the intrinsic role of
such economic responsibility in the formation of the
character necessary to preserve liberty. Men and
women not fit to control their wages are not fit to control
their government -- this is the logic of the dilemma, and
we must act accordingly.

If the moral case against the income tax is made
forcefully and well, it will carry the day. The economic
case against the tax is, of course, also overwhelming.
And a further case can be made that technological
developments will soon make the entire structure as
much a relic as the doomed attempt of the Soviet Union
to prevent its people from communicating among
themselves. It is likely that the question is not whether to
replace the income tax, but how to prepare for its
collapse.

But these complementary arguments must not distract us
from the fundamental one -- a free people that pays
slave taxes to its government is willingly training itself for
bondage.[/quote]

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"Quis custodiet ipsos custodes" RKBA!
 
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