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What is the purpose of a tax system?
Watch Dog Wire ^ | May 30, 2013 | Steve Hayes

Posted on 06/01/2013 8:44:48 AM PDT by EXCH54FE

In 1913, the United States passed the 16th Amendment and then enacted the income tax. Intended as a way of replacing revenues because of the perceived need to reduce the income from tariffs, it was only intended to apply to the wealthiest of the citizens.

However Congress saw the potential advantages of the income tax to reward their friends and influence behavior. One of the reasons that Karl Marx’s Communist Manifesto insisted on a “a heavy progressive or graduated income tax” is that an income tax allows a government to directly control people much more than any other form of taxation.

A TAX SYSTEM TO FUND GOVERNMENT OPERATIONS

If we were looking for a tax system that had the sole purpose of funding government operations which in turn could pay money directly for those things the government wanted to accomplish, it should have these characteristics:

• Gives the most freedom to the citizens while still collecting the needed revenues • Is visible • Shows the true cost of government • Is considered fair • Costs the least to collect • Requires no paperwork from most taxpayers • Rewards hard work and savings • Encourages investment and economic growth • Creates jobs and rewards companies who create jobs • Does not subsidize imports that compete against domestic products • Does not need a vast bureaucracy • Encourages exports • Is difficult to evade.

THE IDEAL TAX SYSTEM?

There is a retail sales tax, the FairTax, which will tax retail sales and services only, will not require any paperwork filing by most Americans and will most efficiently and effectively be in alignment with the elements of the best way to collect tax that is outlined above.

You can go to FairTax.org for more information.

(Excerpt) Read more at watchdogwire.com ...


TOPICS: Constitution/Conservatism; Foreign Affairs; Government; News/Current Events
KEYWORDS: 16thamendment; fairtax; flattax; irs; taxcuts; taxreform
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There is a retail sales tax, the FairTax, which will tax retail sales and services only, will not require any paperwork filing by most Americans and will most efficiently and effectively be in alignment with the elements of the best way to collect tax that is outlined above.
1 posted on 06/01/2013 8:44:48 AM PDT by EXCH54FE
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To: EXCH54FE

How much money would be saved alone by abolishing the IRS?


2 posted on 06/01/2013 8:49:42 AM PDT by Cowboy Bob (Democrats: Robbing Peter to buy Paul's vote.)
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To: EXCH54FE

What is the purpose of a tax system?

Very good question.

At the most basic level, taxes pay for all of the operations and services provided by government.

But, the tax system is full of incentives and punishments.

For example, the various business tax exemptions and deductions encourage certain types of business investments.

The home mortgage interest and property tax deductions are there to encourage home ownership.

The charitable contributions deduction is there to encourage people to contribute to charitable causes.

High taxes on cigarettes allegedly are there to discourage smoking. Ditto for taxes on liquor, so as to discourage heavy drinking.

Is the purpose of taxation to provide revenues for the operations of government only? Or is the purpose of taxation to reward certain economic behaviors? Or a mixture? Should it encourage certain activities such as home ownership or business expansion? Or should a system of taxation be neutral on all such issues, and simply be in place to raise revenue for government?


3 posted on 06/01/2013 8:53:48 AM PDT by Dilbert San Diego
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To: EXCH54FE

“There is a retail sales tax, the FairTax, which will tax retail sales and services only, will not require any paperwork filing by most Americans and will most efficiently and effectively be in alignment with the elements of the best way to collect tax that is outlined above. “

I think it was Carter who came up with the luxury tax which drove hundreds of boat makers out of business. Some of them had been in business 200 years. So, you can make sales taxes progressive too. Why have taxes at all? The government has been producing money with mouse clicks to the tune of 1.8 trillion since 2008, plus 87 billion per month since. So why tax? Just use the unicorns to make more money.


4 posted on 06/01/2013 8:54:07 AM PDT by Gen.Blather
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To: Cowboy Bob

Eliminating the IRS would also save about $13 billion per year.


5 posted on 06/01/2013 8:54:09 AM PDT by EXCH54FE (Hurricane 416,Feisty Old Vet !!)
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To: EXCH54FE
What is the purpose of a tax system?

Social engineering.

Ok, what do I win?

5.56mm

6 posted on 06/01/2013 8:59:48 AM PDT by M Kehoe
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To: EXCH54FE

The tax system is the confiscation of wealth. The Boston Tea Party was a protest over the one and only tax in the nation. Tell me something that is not taxed now.


7 posted on 06/01/2013 9:04:46 AM PDT by mountainlion (Live well for those that did not make it back.)
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To: Gen.Blather
Why have taxes at all?

Because without the ability to control behavior it's practically impossible to run a proper tyranny.

8 posted on 06/01/2013 9:06:18 AM PDT by stormhill (Guns Save Lives!)
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To: EXCH54FE

it depends on your beliefs.

it you’re conservative it’s to fund government, no more, no less.

if yoi’re a liberal, it’s to punish some, to give money to peoples you like, to fund things govt not authorized to fund, to threaten enemies with, to make people do what you want by taxing behaviors. taxes are how liberals get back at non-liberals and hide behind “we’re just doing it to fund government.”


9 posted on 06/01/2013 9:07:37 AM PDT by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
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To: EXCH54FE

Our overcomplex tax system is all about control and manipulation.

Liberals talk about how unfair it is and frankly I agree with them. Lets do away with the multi tiered system and put all people on an even footing.


10 posted on 06/01/2013 9:08:12 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: EXCH54FE

Abolish the 16th Amendment.


11 posted on 06/01/2013 9:15:58 AM PDT by Ruy Dias de Bivar (Sometimes you need 7+ more ammo. LOTS MORE.)
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To: EXCH54FE
What is the purpose of a tax system?

to bilk and control the American people. I would say that the IRS has served the owners of the Federal Reserve Bank way beyond their wildest dreams.

12 posted on 06/01/2013 9:25:43 AM PDT by drypowder
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To: EXCH54FE

I disagree. There are many complications with the FairTax which I will not get into here.

I believe that a return to apportionment is the correct solution. Specificly, representative apportionment where Congress will determine the amount of money to be raised through taxes and the amount raised through all other sources (borrowing, use fees, etc). The amount tax to be raised will then follow a pre-set formula to determine the per seat tax for Senators and for Representatives.

For example, the total tax amount would be divided in to two separate charges, one of Senators and one for Representatives. The Senators charge would be divided by 100 to obtain the per seat charge. Each state would then be assessed for their two senators. Likewise, the tax bill for the Representatives would be divided by the number of representatives in the House to determine the per Representative charge. Each state would then be assessed by the number of representatives for that state. The combination of the two would bet the total federal tax bill for that state.

The state would then be free to develop a taxation method that would best suit their State’s revenue. Some states may want to tax income, others the sale of goods or property taxes, others still may want to find other ways to creatively raise taxes.


13 posted on 06/01/2013 9:56:56 AM PDT by taxcontrol
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To: aflaak

P2P


14 posted on 06/01/2013 10:22:52 AM PDT by r-q-tek86 ("It doesn't matter how smart you are if you don't stop and think" - Dr. Sowell)
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To: EXCH54FE
"What is the purpose of a tax system?"

To crush your enemies, to see them driven before you and to hear the lamentations of their wimmin?

15 posted on 06/01/2013 10:32:15 AM PDT by Flag_This (Real presidents don't bow.)
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To: taxcontrol
The Senators charge would be divided by 100 to obtain the per seat charge. Each state would then be assessed for their two senators.

I don't like that system. My Senators are Blumenthal and Murphy, and they're so worthless I'm afraid CT will be charged twice. </s>

16 posted on 06/01/2013 10:35:07 AM PDT by YankeeReb
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To: taxcontrol

Aside from the prebate (non starter for me), your postulation also neglects the last CON mark I have about the former as well: TOO MUCH GOV’T.

Unless there is a return to A1S8, even the Fair Tax of 23% is TOO high.

Now, couple yours with the repeal of the 17th, and billing the State itself for their share of the debt and, IMHO, you’ll see an auto-return to A1S8 as the States kick the teeth into their $$$ obligation


17 posted on 06/01/2013 12:38:53 PM PDT by i_robot73 (We hold that all individuals have the Right to exercise sole dominion over their own lives - LP.org)
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To: EXCH54FE
What is the purpose of a tax system?

Well, in all other parts of the world...to fund the ruling class so they can live in luxury.

Here, they fought a revolution over that and won. Then, over time, the socialists sneaked back in.

18 posted on 06/01/2013 12:53:17 PM PDT by ROCKLOBSTER (Hey RATs! Control your murdering freaks.)
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To: EXCH54FE

Bring back the tariffs, ska-rew “fair trade”. It’s just another liberal hoax.


19 posted on 06/01/2013 12:55:22 PM PDT by ROCKLOBSTER (Hey RATs! Control your murdering freaks.)
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To: ROCKLOBSTER

Remember the 2nd Plank of the Communist Manifesto.

2. A heavy progressive or graduated income tax.
The 16th Amendment of the U.S. Constitution, 1913 (which some scholars maintain was never properly ratified), and various State income taxes, established this major Marxist coup in the United States many decades ago.


20 posted on 06/01/2013 1:06:29 PM PDT by Yooperman (Yooperman)
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