Please note that under the APT Plan the responsibility for regulating government spending remains as before with the voters.
Only with all of the voters blind to the costs of government, instead of just half of them totally ignorant of the real burden that largess charges against the entire society.
The Honorable James DeMint (R-SC)
United States House of Representatives
APRIL 5, 2001
- "There has been a shift in the relationship between individuals and government, he argues, such that fewer and fewer are paying taxes at the same time that more and more are receiving increasingly generous benefits. If it becomes the case that most voters do not bear a financial burden for this largess, then there will be little to restrain--and significant political incentives to encourage--the continued growth of government.
Today, the bottom 60% of the electorate perceive little to no "Individual Income Tax" burden,(in many cases even a handout)
From, Effective Federal Tax Rates 1979-2001
Effective Individual Federal Income Tax Rate (Percent of gross family income) Income Category 1979 1981 1983 1985 1987 1989 1991 1993 1995
1997
1999
2001Lowest Quintile 0.0 0.5 0.4 0.5 -0.6 -1.6 -1.6 -2.3 -4.4 -5.2 -5.2 -5.6 Second Quintile 4.1 4.8 3.8 4.0 3.2 2.9 2.9 2.3 2.0 1.8 1.7 0.3 Middle Quintile 7.5 8.3 6.7 6.6 5.8 6.0 5.8 5.4 5.3 5.6 5.0 3.8
encouraging 70% of the voting public to clamor for more from government looking for the top 30% of income earners/producers to foot the bill. That perception will do nothing but grow exponentially stronger by eliminating even more voters from substantive and conscious participation in the tax system under that faux 0.3% APT.
So many Americans paying little or no federal taxes makes for a natural spending constituency. It's like me in the restaurant: What do I care about extravagance if you're footing the bill?
--Walter Williams
To remove perception of the tax burdens of the individual, is to remove the goad which assures accountability of government to the electorate.
The siren call for representation without taxation is the formula that got us where we are at today. The ability to hide or disguise taxation from the view of large sectors of the electorate allows the Congress to get away with the creation of the evergrowing monster that it fosters.
Liberty and freedom have a price, responsibility. If that price is avoided or not perceived there are no brakes on the growth of government, the ultimate result is the end of freedom through creeping socialism.
The APT plan produces far more positive than negative results :
POSITIVES
Strong dollar due to economic stimulus attracting foreign investment where no income or excise taxes exist.
Very low interest rates due to extra savings by individuals and attraction of foreign investment capital allowing lower cost capital and infrastructure expansion.
Budget elasticity for government including the ability to respond to special demands such as war or national emergencies.
Eliminate budget deficits with minor adjustments in an already extremely low tax rate. Eliminate accumulated national debt through same mechanism if desired - further strengthening the currency.
Multiplier effects of economic stimulus creating greater numbers and value of transactions in an upward spiral reducing rates or allowing more services.
Incentive to move toward a "cashless" system.
NEGATIVES
Public insensitivity to expansion of government budgets and commensurate regulation.
Very low interest rates for people relying on secure, fixed sources of income.
Loss of tax incentive for charitable contribution. People will have more wealth to give but must do so without economic advantage.