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Income Redistribution Day 2005
Townhall.com ^ | April 15, 2005 | Mark Alexander

Posted on 04/15/2005 10:14:40 PM PDT by FairOpinion

The deadline for filing income taxes may be April 15th, but the average taxpayer will not earn enough cumulative gross income to pay for federal, state and local government spending and regulation until sometime in July. In fact, the cost of spending and regulation now exceeds $24,000 per person per year.

The total combined public and intergovernmental (so-called "trust-fund") debt is approaching $7.8 trillion. Not content to rest on their laurels, the FY 2006 House and Senate budgets will rack up an additional $365 billion in debt.

On top of the current '05 budget's bloated social and discretionary spending, there were more than 14,000 clear examples of unrestrained spending (AKA "pork-barrel") projects appropriated at a cost of about $27.3 billion. Case in point: Consider the $80 billion Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief (H.R. 1268). It includes $103 million for the Emergency Watershed Protection Program; $55 million for wastewater treatment in Desoto County, Mississippi; $25 million for the Fort Peck Fish Hatchery in Montana; and, well, you get the picture.

Fact is, as with previous budgets, Congress has NO Constitutional authority for a large portion of the FY06 budget.

In the late 19th century, Justice Stephen J. Field noted in an opinion: "If the provisions of the Constitution can be set aside by an Act of Congress, where is the course of usurpation to end? The present assault upon capital is but the beginning. It will be but the stepping-stone to others, larger and more sweeping, till our political contests will become a war of the poor against the rich; a war growing in intensity and bitterness."

Indeed. For most of American history, taxes were levied primarily on consumption, rather than income, and for good reason. In The Federalist Papers, Alexander Hamilton argued, "It is a signal advantage of taxes on articles of consumption that they contain in their own nature a security against excess."

All that changed in 1913, however, when the central government started taxing income. At that time, federal taxes were equal to 3% of GDP and the entire tax code was two pages. Now taxes are in excess of 20% of GDP and the tax code is more than 46,000 pages (including 481 separate tax forms). Additionally, taxpayers will spend a cumulative 6.5 billion hours complying with that code, and due to its complexity, more than half of taxpayers will rely on "professional preparation," costing them more than $200 billion.

Government taxation and spending radically departed from constitutional limits under Franklin Delano Roosevelt's reign. FDR launched myriad socialist programs, the effluent of which plagues us today. Roosevelt, by decree, redefined the role of the central government -- and was class warfare's greatest advocate. He proclaimed, "Here is my principle: Taxes shall be levied according to ability to pay. That is the only American principle."

Of course, that wasn't an "American principle," but a paraphrase of Karl Marx's Communist maxim, "From each according to his abilities, to each according to his needs."

FDR set the stage for the entrapment of future generations by the welfare state and the incremental shift from individual freedom to dependence on the state. Soviet dictator Nikita Khrushchev said of Roosevelt's "New Deal" paradigm shift, "We can't expect the American people to jump from Capitalism to Communism, but we can assist their elected leaders in giving them small doses of Socialism, until they awaken one day to find that they have Communism." Echoing that sentiment was perennial Socialist Party presidential candidate Norman Thomas -- the grandfather, incidentally, of Newsweek Assistant Managing Editor Evan Thomas: "The American people will never knowingly adopt Socialism. But under the name of 'liberalism' they will adopt every fragment of the Socialist program, until one day America will be a Socialist nation, without knowing how it happened."

Indeed, FDR, himself the beneficiary of a great inheritance of wealth (like so many Leftist protagonists), was what V.I. Lenin called a "Useful Idiot" -- a Western Leftist who took the side of the Socialists in political debates).

So where does that leave us today?

Former Federal Reserve Board Chairman Paul Volcker warned recently that, once again, America is “skating on thin ice” because of federal budget deficits (read: unrestrained federal spending) -- and we are headed for another an inflationary cycle similar to that of the 1970s.

And there is no sign of restraint.

Regarding tax-code complexity, President George Bush noted in his State of the Union address in January, "Year after year, Americans are burdened by an archaic, incoherent federal tax code. [America] needs a tax code that is pro-growth, easy to understand, and fair to all." Of course the notion of simplifying the tax code is nothing new. In a letter to James Madison in 1784, Thomas Jefferson asked, "Would it not be better to simplify the system of taxation rather than to spread it over such a variety of subjects and pass through so many new hands." Mr. Bush now says tax reform my have to wait a year.

As for tax rates, we are reminded of these supply-sider words from a former president who crusaded for tax reduction: "Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased -- not a reduced -- flow of revenues to the federal government. ... The present tax codes ... inhibit the mobility and formation of capital, add complexities and inequities which undermine the morale of the taxpayer, and make tax avoidance rather than market factors a prime consideration in too many economic decisions."


TOPICS: Business/Economy; Editorial; Government; News/Current Events
KEYWORDS: incometaxes; taxes
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An excellent article.
1 posted on 04/15/2005 10:14:41 PM PDT by FairOpinion
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To: ancient_geezer

TAX PING

"For most of American history, taxes were levied primarily on consumption, rather than income, and for good reason. In The Federalist Papers, Alexander Hamilton argued, "It is a signal advantage of taxes on articles of consumption that they contain in their own nature a security against excess."

All that changed in 1913, however, when the central government started taxing income. At that time, federal taxes were equal to 3% of GDP and the entire tax code was two pages. Now taxes are in excess of 20% of GDP and the tax code is more than 46,000 pages (including 481 separate tax forms). Additionally, taxpayers will spend a cumulative 6.5 billion hours complying with that code, and due to its complexity, more than half of taxpayers will rely on "professional preparation," costing them more than $200 billion."


2 posted on 04/15/2005 10:15:28 PM PDT by FairOpinion
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To: FairOpinion
"An excellent article."

I agree.

3 posted on 04/15/2005 10:18:31 PM PDT by scott7278 ("Please disperse...there is nothing to see here.")
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To: scott7278

"Government taxation and spending radically departed from constitutional limits under Franklin Delano Roosevelt's reign. FDR launched myriad socialist programs, the effluent of which plagues us today."

Socialism is dead in most countries around the world, but not here, thanks to FDR.

In East Europe and Russia in the post-socialist systems, they have flat tax. I think Russia has 12% flat tax, reduced from 17%.


4 posted on 04/15/2005 10:24:30 PM PDT by FairOpinion
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To: FairOpinion
...Roosevelt... proclaimed, "Here is my principle: Taxes shall be levied according to ability to pay. That is the only American principle."

...that wasn't an "American principle," but a paraphrase of Karl Marx's Communist maxim, "From each according to his abilities, to each according to his needs."

Soviet dictator Nikita Khrushchev said of Roosevelt's "New Deal" paradigm shift, "We can't expect the American people to jump from Capitalism to Communism, but we can assist their elected leaders in giving them small doses of Socialism, until they awaken one day to find that they have Communism."

Echoing that sentiment was perennial Socialist Party presidential candidate Norman Thomas -- "The American people will never knowingly adopt Socialism. But under the name of 'liberalism' they will adopt every fragment of the Socialist program, until one day America will be a Socialist nation, without knowing how it happened."

And this is all one needs to know, dwell on, think about, until it is embedded in your thought processes which should enable action.

5 posted on 04/15/2005 10:43:18 PM PDT by Just A Nobody
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To: Justanobody

Exactly. The Democrats ARE socialists. A socialist by any other name, is still as bad.


6 posted on 04/15/2005 11:01:59 PM PDT by FairOpinion
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To: FairOpinion

Corporate welfare for Government, Inc.

A company that defines all laws and regulation for itelf, extorting >30% of the income from every citizen and private company within its borders and serving overseas.

A company that regularly goes bankrupt, and solves the problem by stealing more.

A company that ensures criminals every opportunity to take another victim.

Employers of corrupt and murderous unions receiving obscene contracts for shoddy work, in return for votes.

Killers of Terri Schlinder, 1963-2005.


7 posted on 04/16/2005 12:16:27 AM PDT by SteveMcKing
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To: FairOpinion; Taxman; Principled; EternalVigilance; rwrcpa1; phil_will1; kevkrom; n-tres-ted; Zon; ..

An excellent article.

Indeed it is.

 

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(HR25) & Saxby Chambliss Senate(S25), offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:

H.R.25,S.25
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:


8 posted on 04/16/2005 2:46:31 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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To: FairOpinion

In East Europe and Russia in the post-socialist systems, they have flat tax. I think Russia has 12% flat tax, reduced from 17%.

And in the process of getting rid of there VAT in favor of a retail sales tax.

 

http://www.russiajournal.com/news/cnews-article.shtml?nd=47573

MOSCOW - VAT may be abolished two years from now and be replaced with a sales tax in Russia. The news came from Arkadiy Dvorkovich, chief of the presidential administration experts department, telling reporters that officials were studying the policy switch and its consequences.

“Obviously, this would be impossible in 2006, but it could be introduced beginning in 2007,” he said, adding that a sales tax of ten to fifteen percent should be introduced along with VAT’s disappearance.

 

Seems as though the Russians are pushing the envelope in many fronts.

9 posted on 04/16/2005 2:55:37 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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To: ancient_geezer
If you want a real solution to our tax woes, take a look at the proposed bill NESARA. http://nesara.org/main/

Here are some proposed reforms...

- Amends the existing federal income tax system

- A national retail sales (excise) tax is imposed upon non-exempt retail activities of commerce (20 categories of exemptions covering most necessities of life)

- The Internal Revenue Service is reorganized as the National Tax Service to administer the collection of the new tax

- Establishes three types of United States currency: standard silver coin and gold coin (restores Constitutional currency), and treasury credit-notes

- The United States Treasury buys and cancels all outstanding capital stock of the former Federal Reserve Banks

-The privately owned Federal Reserve System is abolished, returning ownership of the national currency to the people through a newly created United States Treasury Reserve System
10 posted on 04/16/2005 4:33:49 AM PDT by Tempestuous
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To: Tempestuous

The monetary reforms of NESARA plus the Fair Tax Act HR25, would do the best job.


That way we straighten out the monetary system with one bill, while the tax collection is turned over to the states where it should be, with no large federal tax bureau required, and we repeal all federal income and payroll taxes under HR25 instead of keeping wage taxes in place with a sales tax that NESARA apparently proposes to do.


11 posted on 04/16/2005 4:45:51 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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To: FairOpinion

Taxes are to high on all levels.


12 posted on 04/16/2005 4:52:05 AM PDT by TXBSAFH (Never underestimate the power of human stupidity--Robert Heinlein)
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To: TXBSAFH

Taxes are to high on all levels.

How do you propose to change that when half the electorate is not required to participate in paying federal taxes due to high personal exemption, standard deductions and tax credits for everything under the sun?

Folks (i.e. voters) not participating proportionately in paying the costs of largess are just part of the ever growing constituency for even more government spending and largess.

Until the entire electorate participates in the tax sysetem and perceive the butchers bill proportionately with there benfit from the economy as measured by their consumption you can expect government to continue to grow without limit.

 

In general, the art of government consists in taking as much money as possible from one party of the citizens to give to the other.
-Voltaire (1764)

A government which robs Peter to pay Paul can always depend on the support of Paul.
-George Bernard Shaw


13 posted on 04/16/2005 5:00:41 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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To: ancient_geezer

I was under the impression that NESARA repeals all federal income tax and replaces it with a national sales tax instead. In any case I agree with you. Income tax, bad...consumption tax, good.


14 posted on 04/16/2005 5:01:39 AM PDT by Tempestuous
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To: FairOpinion

Great article.

End the marxist income tax. Cut spending and switch to a national sales tax.


15 posted on 04/16/2005 5:05:46 AM PDT by reelfoot
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To: Tempestuous
NESARA doesn't replace Social Security and Medicare payroll taxes. Leaves them in place, and those are just as much an income tax as Subtitle A taxes are.

Title 26 US Code Subtitle C Sec. 3101. Rate of tax

Title 26 US Code Subtitle C Sec. 3501. Collection and payment of taxes

Secondly it leaves tax administration in the hand of the federal government, personally I would rather the feds get out of the business of collecting taxes from the citizen altogether and leave that responsibility under state authorities who constitutionally hold the proper police power & are closer to the citizen's oversight.

I would rather see the Federal government more in a role of protecting individual rights from state predation than being a predator itself.

16 posted on 04/16/2005 5:13:51 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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To: ancient_geezer

So what we need to do is .

1.Get NESARA implemented.
2.Reform Social Security into a true private retirement account.
3.Reform Medicare so payroll deductions fund a private trust to pay for Medicare insurance upon retirement.


17 posted on 04/16/2005 5:32:12 AM PDT by Tempestuous
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To: Tempestuous

And the biggy,

4) Get the feds out of the business of collecting taxes from the citizenry and American businesses. Get rid of all federal excises, turn all tax collection over to the states with the exception of those collected at national border crossing.


18 posted on 04/16/2005 6:33:23 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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To: Tempestuous

One problem in the soup my friend. Unlike HR25, the NESARA legislation has no Congressional sponsorship, it is mere pie in the sky speculation with no following at this time.

I suggest you get busy, in Congress and do the pushups necessary to at least get a concrete bill that someone in Congress is willing to put their name to. Without that, it is dead in the water and will stay that way.


19 posted on 04/16/2005 6:44:44 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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To: FairOpinion
The Democrats ARE socialists. A socialist by any other name, is still as bad.

True, unless you the other name is communist. What most do not seem to understand is that socialism is just the stepping stone to communism. Reread Krushev's statement. Consider the definition of socialism from a dictionary:

Socialism: n. 2. the stage in Marxist-Leninist theory intermediate between capitalism and communism in which collective ownership of the economy under the dictatorship of the proletariat has not yet been successfully achieved.

Oddly, I recently purchased a new dictionary in which this definition has been whitewashed, IMO. I would be interested in yours. Here's the "new" definition-

Socialism: n. A political & economic theory of social organization which advocates that the community as a whole should own & control the means of production, distribution & exchange.

20 posted on 04/16/2005 7:17:56 AM PDT by Just A Nobody
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