May Day! May Day!
(How to Stop the Taxman from Destroying Us and Our Planet)
Sections within this article:
1. How Did We Get Here? A Little History…
2. What’s Wrong with the Income Tax System?
Sign a petition to REPEAL THE INCOME TAX
Would you like an immediate 30% – 50% increase in your paycheck? Of course you would! Talk about stimulating the economy! Would you like to do away with the annual ritual of torture known as “income tax filings”? Of course you would! One famous poll found that most Americans feared an audit by the Internal Revenue Service (IRS) as much as they feared death! Do you realize that tax court is the only U.S. court where you have the burden of proof that you are NOT guilty? Do you personally know anyone who actually likes our income tax system? Well, the bad news is that there is no free lunch, so we must pay taxes. But here’s the good news: There is a much better way to allocate and collect taxes (described below) – and if the U.S. is still a democracy then we damn-sure have the votes to make it happen.
Let’s start by asking ourselves, “If nearly everyone hates the income tax system, then why do we keep it?” Well, although we may not personally know anyone who likes the system, we do know that big corporations and the very wealthy find it to be A-OK… the percentage of taxes paid by corporations and the wealthiest 2% of Americans are now lower than anytime in the last century! Thus they use their power to keep up the masquerade of a “progressive” income tax system while carving out so many loopholes and exceptions for themselves that the IRS tax code has swelled to more than 8,000 pages. Literally no one can claim to comprehend the intricacies of the entire law. Which, of course, leads us to the second group of de facto supporters of the status quo: Accountants, Tax Attorneys and the IRS employees themselves. Such a voluminous and byzantine system guarantees lots of billable man hours to maintain and service, so let’s face it: The folks now earning $50 – $450 per hour to shepherd us through the system have a huge interest in protecting it. One additional reality is that the system now has tradition and inertia on its side, and the process of replacing it opens the U.S. treasury to all sorts of newly invented corruptions (the rich and powerful didn’t gain their lofty positions by happenstance, they work constantly at being devious, and they aren’t likely to have a change of heart soon). So lets see then: The current system is supported the richest 2% of the citizens, the yes-man lieutenants of the corporate powers (these folks routinely hack off their own manhood on command of their “superiors”) who make up another 5% of the citizenry, the 2% of citizens employed in the tax racket, and another 10% of the citizens we can chalk up to the “if it was good enough for (insert your favorite dead politician or “war hero”) then it’s damn- well good enough for you and me” school of non-thought. That’s roughly 21% of the citizens who will probably support the existing system; which means that if the reform activists (maybe 1% of the citizens) can arouse just half of the other 78% from their usual hibernation then we could easily revamp the system. Of course, that assumes the the U.S. is still a genuine democracy, and in this day of multinational and transnational corporations, legalized campaign fund bribery, and inconceivably large military and para-military budgets, that is a questionable assumption! (Nevertheless, it’s still worth asking the question.)
[Let everyone know how you feel, immediately, by using our SPEAK tool on the left side of this page to alert friends and demand action from the government. Be sure to check the “cc:” boxes which will automatically forward your comments — and a link to this article — in e-mail form to the selected key officials shown. We have already done most of the work. Simply add your voice to the growing chorus!]
How Did We Get Here? A Little History…
Regardless of what current “leaders” may like to sell you, Americans did NOT always have to suffer a tax on their income. In fact, such a tax was specifically forbidden by the founders of the U.S. Constitution, who understood that it was a tool of the elite to enslave the masses while funding programs the elite found to be to their own benefit. Jefferson, et al, specifically authorized that ONLY trade and commerce would be taxed and that NO TAX WOULD EVER BE LEVIED ON INDIVIDUAL CITIZENS. After hundreds of years of experience with kings and landed gentry, the authors of the Constitution were very careful to ensure that the greed accompanying the ambitious classes would be forced to pay its own way, and NOT supported on the backs of the common citizens’ “life, liberty and pursuit of happiness”.
However, during “The Great War to End All Wars” (as the first World War’s propaganda labeled itself) Americans were duped NOT ONLY into sending their sons to death to protect the old money interests in Europe but were also conned into approving a constitutional amendment for a “temporary” one-percent (1%!!!) tax on income to support these war efforts. So, finally, after waiting patiently for more than 100 years, the elite’s faith in Alexander Hamilton paid off… Jeffersonian protections for the common man were set ablaze: In addition to the income tax, the tragic legislation of the decade from 1910 to 1920 produced “The Federal Reserve Banking System” as well as as various Bond Debt Acts (each diametrically opposed to the brief liberties from elitist rule won with patriot blood during the American Revolution). For his “revolutionary” efforts to keep a foot in the U.S. door for the elite, it is no coincidence, Hamilton’s face appears on the $100.00 bill (in fairness to A.H., he was also opposed to an income tax on both economic and political grounds). For his complicit efforts in signing and supporting these legislations, President Woodrow Wilson, on his death bed, pleaded, “Forgive me: I have betray my country and my people.”
It should not, therefore, be surprising that, IMMEDIATELY after securing the various pieces of legislation needed to legally fund their self-serving schemes, the elite (both national and international) proceeded with the non-stop rape of the U.S. lands and taxpayers. For the past 90 years, U.S. taxpayers have nobly (or apathetically) endured a never-ending series of wars, increasing debts, increasing federal programs and expenditures, and tital waves of sales propaganda. (If our country were not so vast and heretofore virgin, then the citizens would have noticed the pillage immediately; instead we are only now coming to realize what the king-makers have been working at for 200 years: indeed, there is NO rest for the wicked.)
Of course, such phenomenal growth in capital spending (all public debt, naturally, and all payable at guaranteed interest to the same wealthy elite whose interests where being directly protected by U.S. military and bond debt expenditures) created an incredible flood of cash expansion during the period of 1915 – 1930, leading to “The Roaring 20’s”. But it’s just like your credit cards: While you run up carefree debts the party is glorious fun, but some day there must be a reckoning and the devil to pay. While fear of the reckoning SHOULD cause spending sobriety in individuals and nations alike, with the debts of militarily powerful sovereignties just the opposite occurs. This is because the elite (who are always the money lenders) know that the public (who are always the borrowers) can be squeezed (literally) into virtual slavery by ever-increasing taxation enforced with the muscle of the para-military (courts, sheriffs, police) and (if necessary) the military. So, rather than caution and sobriety, the elite party like rock stars, secure in the knowledge that (1) nearly all governmental spending is directed toward advancement and protection of their own interests, (2) their companies receive the lion’s share of those public expenditures, (3) increasing public debts means increasing opportunities (and interest rates) to park their newly acquired zillion$, and (4) the taxpayers of a military power all ALWAYS good for the debt since they are willing and able to both (a) pay high taxes and (b) repress peoples of other nations in order to secure their own living. So even market crashes are NOT a problem for the elite; instead they are a time to pick ripe cherries and weed out undesirable specimens. In fact, once private forces gain control of the banking industry (e.g. via the Federal Reserve System), then the money supply (and hence the entire economy) can be manipulated to suite the goals and strategies of the controlling elite.
Within this context, it can be argued that neither the rescession of the 1930’s nor of any period subsequent has been a surprise to very wealthy: expansions and contractions of the money supply are simply tools of control which allow the elite to optimize their portfolios over time, regaining control by strangling the economy anytime they are threatened. As Jefferson himself warned, “If private interests ever come to control our banking system they will, through a series of inflations and deflations, strip all wealth from our citizens until our grand-childrens’ grandchildren wake up homeless and penniless on the shores of the lands which their forefathers conquered.” Old T.J. called not only the cards, but also the sequence in which they would be played out. Some argue that Franklin D. Roosevelt put the final nails in the coffin of “our noble experiment in freedom and democracy” with the so-called “New Deal” Social Security pyramid scheme. The honest working stiff has rarely had a day of rest since… and it’s looking like that stiff’s grandkids will be in ever-worsening circumstances. In short, the Social Security system was engineered to indenture future generations while buying the silent complicity of then-existing voters. Meanwhile, taxes on trade and commerce, the cornerstone of the Constitutional Congress, have been slashed and slashed again. Now (with WTO, GATT, NAFTA, etc., and all manner of transnational wealth transfers) payment of corporate taxes to the U.S. treasury are practically voluntary. We desperately need to wake up, smell the coffee (it’s burning), and stop all of this malarky. (Or soon we will not be able to reform the system at all… once China’s mass consumers comes on-line the U.S. could become little more than a safe zone for elites, with little need for a middle-class, but lots of jobs in the maids and butlers service sector — so start training your grandkids now!)
In case you missed it: RE-READ THE ABOVE PARAGRAPHS! UNDERSTANDING THESE MOTIVATIONS, PLAYERS AND DYNAMICS IS THE KEY TO UNDERSTANDING EXACTLY WHAT IS (AND HAS BEEN) HAPPENING IN OUR NATION AND OUR WORLD FOR AT LEAST THE LAST 100 YEARS. THIS UNDERSTANDING IS CRUCIAL IF WE ARE TO ESCAPE MASS INDOCTRINATION, APATHY AND ULTIMATE TRAGEDY.
To summarize our tax history: The income tax is a system specifically forbidden within the original U.S. Constitution, it was sold to citizens as “temporary” over 90 years ago at the rate of just 1% in order to pay for “The Great War to End All Wars”. The Social Security system was engineered by the elite as yet another pyramid scheme which would indenture future generations while buying the silent complicity of then-existing and disgruntled voters. The U.S. now needs to return to a tax system based solely on the trade and commerce entities which profit handsomely from our military protection and our infrastructure.
What’s Wrong with the Income Tax System?
Even better than an historical “conspiracy of the elites” argument, the income tax can be rightfully ridiculed on a number of levels, both contemporary and logical.
1. Disincentive to Income Production / Incentive for Consumption: The income tax discourages productive endeavors by individuals, while encouraging rampant “tax-deductible” consumption. Therefore, the income tax works against both logic and sustainable life on this planet. Why would we encourage massive consumption and discourage production? This is one of the most obvious breaches of logic in the current tax system (unless you believe the theory that capitalism IS a pyramid scheme which requires constant growth – consumption – in order to keep the illusion alive… but you don’t believe that, do you?).
2. Favors Corporations Over People: Why can’t people (like corporations) write off all of their clothing, food, shelter, transportation, utilities, etc., since these are all “necessary to the production of revenue”? Should we suppose that you can show up to work naked, cold and starving but still able to produce your income? This inequality is glaring testimony of who writes the current income tax laws and which interests are favored within those laws.
3. Bookkeping System is Cumbersome and Expensive: The present system forces every single working person to understand tax law, perform all sorts of accounting procedures, and file forms which even experts routinely complete inaccurately (or to pay experts for these services). The fact that most people do NOT perform the above tasks knowledgably and/or in strict accordance with the codifed laws explains why most people are terrified of an IRS audit. At the same time, the expense involved in both taxpayer compliance and government oversight is many times greater than other taxation systems therefore causing massive waste of both productivity and tax dollars. Taxpayer compliance is estimated at more that $250 billion per year! The IRS employs 144,000 people, more than the CIA and FBI combined, and larger than all but 36 other U.S. corporations… at a cost of $8 billion per year.
4. Creates Invasive Government: Tax court is the only U.S. court where citizens are effectively considered “guilty until proven innocent”. The burden of proof lays with the taxpayer, not the government, which is another reason why most people are terrified of an IRS audit. Further, the very nature of this system allows government to delve farther into the personal lives of our citizens than even King George would have dared!
5. Diminishes Freedoms: In an attempt to minimize tax avoidance, the government has passed an array of laws which restrict many simple freedoms. For example: Inconspicuously carrying large amounts of cash into or out of the country; Making private deposits or withdrawals of more than $10,000 at a time; Choosing NOT to keep detailed transaction records; Freedom from fear of government agents seizing or freezing your assets (even upon mere suspicion, and remember you bear the burden of proof); Freedom from paperwork; Freedom to pay gardeners, babysitters, and others more than $600 per year without having to become an official “employer”; and many, many more.
6. Invites corruption: The defintion of “net income” is subject to so many shenanigans that the entertainment industry (which loves to offer false promises of “net” profit percentages to various naive participants) is rife with “net vs. gross” jokes (and lawsuits). Unless you just fell off a turnip truck, you know that a good lawyer or lobbyist can wriggle footnotes into the tax code which effectively reduce a corporation’s “net” profits to zero, even while it pays billions to its officers and shareholders. Such possibilities ensure never-ending campaign contributions for members of the related congressional committees, thus institutionalizing corruption within our so-called “democracy”. The income tax also encourages otherwise honest citizens to “lie and cheat” regarding their total “income” thereby further blurring the moral line between right and wrong.
Any one of the above reason alone should be sufficient to render such a system unacceptable. The sum of the above renders the income tax a ridiculous sham! It’s very existence, muchless its perpetuation, is a loud indictment of the current overall U.S. political system.
A Better Tax System!
So, if the Income Tax system sucks eggs and if a civilized nation needs to collect taxes for the common good, then what might be a better system?
“Glad youse asked”, says da salesman!
A tax on ALL trade and commerce (a “sales” tax) is far simpler, far more equitable, far less expensive, far less intrusive, far less corruptible, and more in keeping with the wisdoms of the Constitutional Congress (which was, after all, smart enough to escape the Kings and endow what would become the most successful and powerful nation in the world).
In its simplest form it works like this: EVERY sales transaction will be taxed; ALL “net income” taxes will be eliminated. Merchandise is taxed, labor is NOT taxed! A Tax is levied with EVERY transfer of assets (even, and especially, between related companies). The IRS is either eliminated or reduced to (mostly) electronic audits of participants in trade and commerce. Estimates vary, but a flat national sales tax of 5% – 20% has been calculated as completely replacing current federal revenue. The main winners: Common citizens and small businesses. The main losers: Giant corporations and the top few percent of wealthy individuals.
As a brief aside, the Social Security and Medicare taxes should be eliminated at the same time, and explicitly funded (as they are now in tacit reality) through the general fund. As a nation, we either believe in these programs (and thus will fund them in real time) or we do not (and thus should NOT perpetuate such a sham on the next generations). Trade and Commerce MUST bear the burden of taxation since these industries directly benefit from the protections and infrastructure our citizens provide (with our hands and, in the case of the military, with our lives).
Liberal and social engineers suggest a slight modification to the above: a tiered (or “progressive”) tax rate which taxes “necessities” (such as basic foodstuffs) at a lower rate, while taxing luxuries (such as yachts and jewelry) at higher rates. In theory, such a progressive system would minimize the tax bite on the poor while forcing those who benefit most (and consume most) to bear the greatest tax burden.
Either way, there are many obvious advantages to a national sales tax instead of an income tax.
First, if EVERY sale (or transfer) of a physical item is taxed, then we have a huge incentive for short, flat distribution chains… from producer directly to consume wherever possible because no middleman could beat the price. This would be a tremendous step toward bringing business back to a localized, community-oriented form.
Second, such a system would provide an incentive for production, savings, investment, wealth creation and frugality. Simultaneously, it provides a disincentive for conspicious consumption, or at least all thoughtless consumption. In a resource limited world (such as planet Earth) a bias toward savings and against consumption is exactly what is needed… NOW! With such a system the thrifty can rightfully smile at the thought that the biggest consumers are bearing the largest costs of maintaining our civilization.
Next, the system would be much easier to administer. By definition, businesses which sell products are already required to have accounting systems and collect taxes on all sales (in most states) so little or NO additional infrastructure would be required. Hundreds of millions of citizens and services businesses would no longer need to keep any records, file any forms, or suffer any audits; all of which now consume time and resources of both citizens and our government.
Also, it would be far harder for selling firms to cheat since inventory records, supplier records, sales records, and all other supply chain records would be subject to audit and (for the most part) could be electronically reconciled (again, using systems which are largely already in place). Since we are focusing on physical items (as opposed to intangible labor or intellectual property) audits would be very concretely based.
Further, with NO exceptions and NO deductions (every transfer is taxed on the value transferred) the tax code reduces to a few hundred lines of legalese which every business-person can understand. “Sales = $100; Sales Tax collected = $12.00; Sales Tax Payable to Government = $12.00”. Like we said: simple.
As a bonus: no more IRS; no more fear of audits for individuals and service providers; less intrusion into our private lives; less reduction of our freedoms; less arbitrary power for bureaucrats; less corruption of individuals; politicians and our democratic system; less paperwork!
Making Reform Happen
Obviously, such an overhaul will require a massive effort. We must consider the expected resistance from the various groups mentioned at the top of this article, and especially the very elite who have fashioned the current system in the first place. But we have the potential to inspire 80 million taxpayers who will see an immediate 30% – 50% increase in their paychecks, a huge reduction in time-wasting paperwork, and an end to IRS-audit nightmares: That is the largest army the Western world has ever seen, so the elite will damn-sure retreat! Still, it IS a massive undertaking.
Fortunately, there are already many committed citizens working on the issue (including several members of Congress) and they have been at it for several years now, so our job is relatively easy and painless: Scream your support in letters, e-mails, phone calls to your Congressional representatives; Voice your support in radio and TV call-ins, letters to the editors, the SPEAK page on this web site, and in direct communication with your co-workers and friends; and support groups such as FAIR TAX who have laid the groundwork and can make it happen — their excellent site is well worth your time!
That is really all it takes… raise your voice clearly and consistently, perhaps send a few bucks to the organizations fighting on the front lines, and do it consistently for the next 2 years.
Summary & Conclusions:
What can you do? What should you do?
1. Sign a petition to REPEAL THE INCOME TAX
2. Use our SPEAK tool as simple, fast and easy way to act… now! Let your voice of concern be heard! Use the tool on the left to forward this article to your friends and family… and even send your opinion to the key officials we have pre-selected with one extra click.
3. Check out www.fairtax.org .
If the U.S. citizens demand such reasonable (indeed wise) tax reforms for the next few years and Congress fails to respond with a meaningful overhaul then I suggest you re-read the beginning of this article and consider whether we still live in a democracy, or whether we are simply existing as slaves who have been deluded into believing that we are free (at which point our choices become more stark and severe). In the meantime, let’s proceed from a position of hope and earnest effort.
Thank you for your attention, interest and concern.