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How is our current tax system "Neutral?"
11-23-04 | Shamino

Posted on 11/23/2004 10:46:04 AM PST by Shamino

In our current tax system (a graduated income tax) not everyone pays in a manner that is neutral.


TOPICS: Business/Economy; Constitution/Conservatism
KEYWORDS: fairtaxplan; hr25; taxcode; taxreform
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In our current tax system (a graduated income tax) not everyone pays in a manner that is neutral. There is plenty of room for people to get out of paying or cheating the system...Under the current system we will be lucky if 60% of American Workers pay into the system. The so called "rich" and certain special interest groups are often the ones who get out of it, leaving the middle class worker to be nearly squeezed out of existence. While there is no perfect solution, a tax on sales is largely in place, and easily traceable--so the conversion to a sales tax system will be relatively easy and certainly fair. The existing graduated income tax system on the other hand was in fact designed to be regressive, to punish all so that congress could have full control of the debts and sovereignty of each American. It is highly uneconomic to even have an income tax, where money is taken from those who earn it, before they get to spend it--so, its only purpose then is for social control.

There is an old Maxim "The power to tax is the power to destroy." In fact an income tax was never a part of our system of government until 1862, which most of the money raised was through tariffs, duties on imports and excise taxes. The income tax was repealed in 1872, and reappeared in 1894 and was ruled to be unconstitutional a year later. The Supreme court held that taxing the wealthiest 1% violated Article I, Section VIII of the constitution and they stated that while Congress has the power to tax they must be "uniform." The Supreme Court established the rules of geographic uniformity--which our current graduated system doesn't use. And if income tax was unconstitutional, what about payroll taxes? All of this was of course discounted and the tax code as we know today was formed after 1913, and revised and repealed several times since then. Any wonder why its on the table again for reform?

Under the Fair Tax Plan, everyone pays based on the things that they buy--its neutral in the sense that it cannot be biased for Rich or Poor, Race or religion, and its limited only to an individual's spending habits. Under the Fair Tax Plan the Poor also get a rebate so the cost of their basic living is not overtaxed. It clearly meets at least one criteria of the Supreme Court--geographic uniformity. A "Fair Tax" Plan will also broaden the tax base, which will help the government, but more importantly it will help to lead our economy in a direction that is less regressive and globally competitive. In my opinion, income tax in this country should be banned, and our government including senators should be held liable for overspending and abuse of our economy and citizens. IF we have to have a tax on revenue within our borders, the best and fairest plan to date is the "Fair Tax." If the Fair Tax Plan will be put in place--Every American worker earns and keeps 100% of their money before the government gets a single cent. IT also abolishes the American Gestapo--the IRS.

This country was founded not be a New Age Serfdom, but to be one of human possibility and economic sovereignty. Why should the American worker be subject to Uncle Sam's Allowance when it is the worker who earns the dollars and produces the goods and services for our country? I believe that the current income tax system and its supplemental payroll tax are in direct opposition to both the fundamentals of our constitution and economic sense.

After all, our country wasn't the leading economy of the world during the Industrial Revolution because of any one government's generosity--it became so because of the enterprise of the American people, and our low or no income tax policies. Our government dug this hole for us, now its time for us to dig ourselves out and get back on track with economic reform for a more progressive tax policy, and the abolition of any institution that supports economic tax burdens.

1 posted on 11/23/2004 10:46:04 AM PST by Shamino
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To: Shamino

Just so you know, the rich pay more in taxes than anyone and the poor pay none at all. As a matter of fact, we GIVE them money from the tax coffers.


2 posted on 11/23/2004 10:47:12 AM PST by AppyPappy (If You're Not A Part Of The Solution, There's Good Money To Be Made In Prolonging The Problem.)
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To: Shamino

Welcome to Free Republic.


3 posted on 11/23/2004 10:47:22 AM PST by EggsAckley (...............stop unnecessary excerpting.................)
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To: Shamino

It'd only be reasonable if you didn't tax anything edible or neccessary like utilities.


4 posted on 11/23/2004 10:47:51 AM PST by Bikers4Bush (Flood waters rising, heading for more conservative ground. Vote for true conservatives!)
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To: Shamino
The best attempt I have seen lately at mitigating this obvious inequality (legalized mugging), is to aloow each family an additional vote at all elections for every $5k or portion thereof of income tax paid.

People who don't pay income taxes, common sense tells us, will vote for every tax measure presented. "I have nothing to lose" doesn't take a lot of fiscal or intellectual horsepower.

5 posted on 11/23/2004 10:55:02 AM PST by Publius6961 (The most abundant things in the universe are hydrogen and stupidity.)
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To: Shamino
Under the current system we will be lucky if 60% of American Workers pay into the system. The so called "rich" and certain special interest groups are often the ones who get out of it

Sorry, but it is not the rich who are avoiding taxes. It is the poorest people who do not pay taxes.

6 posted on 11/23/2004 10:55:07 AM PST by Always Right
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To: Shamino

7 posted on 11/23/2004 11:11:27 AM PST by So Cal Rocket (Proud Member: Internet Pajama Wearers for Truth)
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To: Shamino
It is the evil, hated rich who pay the bulk of income taxes. The bottom 50% of income earners pay LESS than 4% of all income taxes.

I fully support that NRST, but will only do so if the repeal of the 18th amendment in conjunction, making it unconstitutional to tax a persons income.

8 posted on 11/23/2004 11:41:19 AM PST by Phantom Lord (Advantages are taken, not handed out)
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To: Shamino
It took a long time for me to realize how bogus this tax system is.

In 1992 as a LT in USN I made a little over $35,000 and paid 20% or so in Federal Income Tax.

In 2000 I sold my business, made $3.5 MILLION profit and, after all was said and done, paid less than 17% in Federal Income Tax. It was completely legal and has been audited by the IRS. I don't know how this could be, but that's why accountants make the big bucks.

9 posted on 11/23/2004 11:42:56 AM PST by atomic_dog
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To: AppyPappy

Oh, I realise that the "rich" who do pay, pay disproportionally more than anyone else, but as a percentage of one's income for individual families, the middle class gets soaked and lower and middle class has a very low rate of savings.

The point of my message was not who pays their fair share, but to make the point our current tax system isn't fair and there are better ideas out there!

If you want to talk about loop holes, talk to the Heinz Foundation.


10 posted on 11/23/2004 5:44:02 PM PST by Shamino (Income Tax is "neutral"? You must be joking! Or incredibly stupid!)
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To: everyone

Low Wage earners or those that live on Wellfare and don't contribute in any manner to our economy is another issue entirely, and its also a big problem.

Fair Tax benefits everyone...the rich and poor alike....it just is one good idea to keep government's tentacles out of the engine of our country.


11 posted on 11/23/2004 5:51:25 PM PST by Shamino (Income Tax is "neutral"? You must be joking! Or incredibly stupid!)
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To: Shamino; Bigun; kevkrom; ancient_geezer; Taxman

Tax Fairness/Economic Boom Ping!


12 posted on 11/23/2004 5:53:44 PM PST by Principled
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To: So Cal Rocket
Yes, its true....The Top 50% of wage earners pay 96% of all taxes paid....but how can you compare people or companies like Bill Gates who are worth Billions of dollars individually to a working family making less than $50,000?

Working familys in the lower brackets spend nearly 95% or more of their income to meet a basic standard of living, while those in the upper 5% have more discretionary income, despite all the taxes they pay.

Bottom line....payroll taxes should illegal and are at the least immoral, and income taxes are at the least dubious. Everyone should be keeping 100% of their income before the government gets a dime!

www.fairtax.org
13 posted on 11/23/2004 5:59:57 PM PST by Shamino (Income Tax is "neutral"? You must be joking! Or incredibly stupid!)
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To: Taxman; Principled; Bigun; EternalVigilance; kevkrom; n-tres-ted; Poohbah; CliffC; ...
Ahhh, yet another good writeup on everyone's favorite topic ;O)

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:

H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.

Refer for additional information: http://www.fairtax.org, http://www.salestax.org & http://www.geocities.com/cmcofer/ftax.html


14 posted on 11/23/2004 6:32:52 PM PST by ancient_geezer
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To: Bikers4Bush
Actually under the Fair Tax plan everyone gets a monthly rebate up to the poverty level so in effect necessities are not taxed.
15 posted on 11/23/2004 6:39:18 PM PST by socialismisinsidious ("A government that is big enough to give you all you want is big enough to take it all away.")
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To: ancient_geezer

Thanks for all of the taxreform pings.


16 posted on 11/23/2004 6:42:20 PM PST by tuliptree76
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To: tuliptree76

You're welcome!!

Once you're on the pinger, the big question becomes what is it worth to you to get off.

MuuuAAAAAHHHHHaaaHHHahahahah ;O}


17 posted on 11/23/2004 6:52:56 PM PST by ancient_geezer
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To: ancient_geezer
Once you're on the pinger, the big question becomes what is it worth to you to get off.

I got sucked in and I don't think I want off. ;-)

18 posted on 11/23/2004 6:59:48 PM PST by tuliptree76
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To: tuliptree76

The NRST debate does tend to do that to people :O)


19 posted on 11/23/2004 7:03:32 PM PST by ancient_geezer
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To: Shamino

How is Skara Brae these days?


20 posted on 11/23/2004 7:14:18 PM PST by xrp (Executing assigned posting duties flawlessly -- ZERO mistakes)
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