Posted on 07/10/2014 5:40:08 AM PDT by 1rudeboy
July 1 might go down in history as the beginning of the end of the comprehensive, progressive income tax. A progressive income tax, in which the government attempts to tax all labor income and capital income, such as interest, dividends and capital gains more than once, cannot help becoming so complex that it eventually dies of its own weight. This is particularly true when the government attempts to tax the worldwide income of its “tax persons” rather than the income located in its own territory. The complexity is caused by the never-ending attempt to define what income is and what should be exempt (loopholes).
Press reports now state that the U.S. tax code is more than 77,000 pages and growing at a rapid rate. [] When laws are too complex and increasingly subjective in their interpretation, it inevitably leads to corruption. All but the willfully blind now understand that the IRS has both become corrupt and incompetent.
On July 1, the IRS extended its reach to perhaps 100,000 foreign financial institutions and millions of other non-Americans who receive or make payments to Americans. This global power grab was the logical extension of the effort to tax the worldwide income of all Americans, which requires the IRS to know about all payments to and from the United States and which financial institutions are involved in the transmittal and holding of accounts. The paperwork is unending and incomprehensible. (If you think I am overstating the case, download the new “W-8BREN-E” tax form from IRS.gov, which certain foreign recipients of U.S. payments are required to complete. Even tax lawyers tell me that it is nearly impossible to fill out the form without perjuring oneself, owing to the form’s endless ambiguity and lack of clarity.)
(Excerpt) Read more at washingtontimes.com ...
FRankly, I cannot fathom this law surviving judicial scrutiny.
Somebody, somewhere, is going to sue, and will prevail, IMHO.
"Any form of income tax is evil, as it gives the government control over your life."
IIRC, Congress does not set the prebate rate.
The annual consumption allowance is based on the DHHS poverty guidelines as published annually in the Federal Register.
The prebate is 23% of the annual consumption allowance.
So, the annual consumption allowance and the prebate will change every year; neither of them can be dictated by Congress.
GREAT IDEA/!!!!!
I have proposed that the federal government send out 50 bills. One to each state. The size of the bill is based upon the number of citizens over 18 at the time of the last census.
Let the states figure out how to collect it. Eventually, with 50 experiments going on, the least expensive to the citizens and state to manage, most compassionate, and business friendly methods will emerge.
Yes! The federal government should have almost no contact with the individual citizen. They should be dealing with state administrations only.
No, he's right.
Unless the 16th is repealed with an amendment forbidding income taxation at all levels (federal, state, local, international), the progressive income tax would simply come back on top of the FairTax the next time the Donkees seize control.
The problem is, constitutional amendments are hard to pass. So, Dr. Rahn has it right.
Defense spending is not the big deal it once was.
Get rid of government waste and there would be plenty for defense.
House Joint Resolution 104 will repeal the 16th Amendment.
FairTax ping!
You, Ray, have a most firm grasp of the obvious! Well said!
You have described the FairTax!
I do not like consumption taxes for the reason that those are hidden taxes. You see one price on the gas pump--what you don't see are all of the federal, state, and local taxes rolled into that price. As a result, you have no idea how much tax you are actually paying. Furthermore, people hardly notice the sales tax, even though it is specifically enumerated on the sales receipt. Thus, consumption taxes are a way for government to sneak more money from you without you being aware of it.
The best kind of tax, IMO, is one that is very noticeable to the one paying the tax. The best way of achieving that would be a flat tax that is not deducted from one's income, but which would require the taxpayer to send the amount on a regular basis. If you make $50,000 and you have to write a check for $7,500 (15%), you *will* notice the tax. (Gee, I wish I only had to pay 15%!)
Or rather, you don’t till someone invades and forces one on you.
Nobody said no taxes of any sort. As I read it, slowhandluke put for that the income tax was evil and should not be in existence.
That means something different than "no taxes of [any] sort". For example, there is the founders idea of an excise. That is not an income tax yet it could fund our government. There is an excise NRST that has been thoroughly studied and would work. It's only political questions that must be satisfied.
But the flat income tax is indeed better than what we have now as all taxpayers would pay the same marginal rate [if only briefly]
My support is behind an excise tax on retail consumption. Such a tax does not have any of the problems listed above - it resolves/eliminates those problems. THe rate on such a tax would be to add 29% to the cost of retail consumption purchases [not business purchases]
This nrst excise has only a political hurdle - how to have the poorest not be hit with taxes that come to 50% of spending.
Sounds like Cain's 9-9-9 plan.
Or, stated another way appropriate in a discussion of how the poor may be affected: A regressive tax is one where the effective tax rate rises as income falls.
Notwithstanding the in-the-weed average vs effective, the 17% flat tax does not include FICA. That seems dishonest - although I think sellers just need to include that "detail".
It sounds easy - just "fill out a postcard" but defining income - particularly for a business - is problematic. It's not easy. If it were so easily defined and simple, income would simply be re-arranged to avoid taxes and would introduce a black hole in the collection mechanism ... dividend or reinvest? stock-swap or country club membership donated? Incorporate your family unit to allow for business expenses? forever and ever... plus add some lobbyists and blech we're not on any freakin' postcard and it's no 17% marginal rate - it's 32.3%.
You don’t think the current system suffers even worse for these points?
Canada has a national sales tax and I don’t see it solving any of the issues you raise. The arguments used to push this through are much the same as the ones you offer, but there was no benefits received to either consumers or business from the advent of the national sales tax. The only winner was the gov’t, as they now had a new source of tax revenues.
I’ve read both volumes on the Fair Tax and understand that a consumption tax is much more difficult to evade than an income tax, but some of the issues you raise are equally difficult to tax when on consumption (e.g., stock swaps).
As to the impact on the poor, I fail to see why a demographic group that lives off the income of someone else shouldn’t pay taxes. Either that or, if you don’t pay federal income taxes, you don’t get to vote in federal elections. Same for state and local elections. After all, nothing in the game, no voice in the game.
The politicians LOVE the progressive income tax because it lets them carve out exemptions for their campaign donors.
BTTT!!!
You are absoFReepinglutely correct!
And, DC lobbyists are even more opposed to the FairTax than the Congress and the Administration.
And, there are a lot more of them: AHELLOFALOTMORE!
“On paper, the lobbying industry is quickly disappearing. In January, records indicated that for the third straight year, overall spending on lobbying decreased. Lobbyists themselves continue to deregister in droves. In 2013, the number of registered lobbyists dipped to 12,281, the lowest number on file since 2002.
“But experts say that lobbying isn’t dying; instead, it’s simply going underground. The problem, says American University professor James Thurber, who has studied congressional lobbying for more than thirty years, is that “most of what is going on in Washington is not covered” by the lobbyist-registration system. Thurber, who is currently advising the American Bar Association’s lobbying-reform task force, adds that his research suggests the true number of working lobbyists is closer to 100,000.”
See http://www.thenation.com/article/178460/shadow-lobbying-complex?page=full for a fascinating article about lobbying in Ophonybama’s WDC.
Make no mistake about it - ALMOST EVERY LOBBYIST IN WDC IS OPPOSED TO THE FAIRTAX.
They know that with FairTax, there will BE NO behind the scenes manipulation of the tax code to benefit the “rent-seeking” companies, unions and “public interest groups” that cluster around the House, Senate and White House.
These lobbyists are VERY WELL PAID, and do not want to look for honest work, so they will work very diligently against We the People to keep their cushy jobs and extravagant expense accounts!
We have our work cut out for us!
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