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Another 3.9 million Americans will have their income tax liability completely eliminated, officials said.

That's 3.9 million Americans more added to the spending constituency of 70% of the public clamoring for more from government, expecting someone else to foot the bill.

Walter Williams, World Net Daily, 10-25-2000

According to the most recent U.S. Treasury Department figures, in 1997 the top 1 percent of income-earners (those with income of $250,000 and higher) paid 33 percent of all federal income taxes. The top 5 percent of income-earners ($108,000 and over) paid 52 percent, and the top 50 percent ($36,000 and over) paid 96 percent of income taxes. Guess what the bottom 50 percent of income earners paid?
If you're among those who pay little or no federal income taxes, what do you care about tax cuts? Moreover, if you think tax cuts pose a threat to government handout programs, you might be openly hostile and support Al Gore's silly "risky scheme" talk. 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?

Problem is these folks still pay the taxes they are just snookered in to believing otherwise, its time to give the nation's voters visibility of their tax burdens not hide them even more.

Wonder where they hid the pea, in the perpetual political shell game?

CBO Monthly Budget Review

RECEIPTS THROUGH FEBRUARY (In billions of dollars)
		October-February		Percentage Change
Major Source		FY2001	FY2002	Percentage Change

Individual Income		404	373	-7.6
Corporate Income		59	63	6.2
Social Insurance		270	273	1.4
Other		59	57	-3.1

	Total	792	766	-3.2

SOURCES: Department of the Treasury; CBO.

The individual income tax return that captures everyone's attention each April, is nothing more an accounting sheet the government cons individuals, held at ransom, into filling out. It puts a blinder on the eyes of the voter, and totally distorts their perceptions as to the real impact of taxation in their lives.

The tax system is actually fuelled from the dollars we spend which pays the gross wages, and investment returns to individuals who are the ultimate purchasers of goods and services and hence the payers of all taxes.

We spend "disposable income", (i.e. "aftertax" income) which finances all income that is taxed. Viewing from the perspective of consumption dollars, where it is all generated, we get an entirely different perspective on what is being done to us. Between business income taxes and payroll taxes, the burden on citizen as reflected through higher prices, lower wages, and lower return on investements are indeed horrendous.

Read:

DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?
by D. Sherman Cox J.D. L.L.M. Taxation

And that doesn't begin to account for the costs of compliance & enforcement that is added to the butcheer's bill as well.

Where Have All the Dollars Gone?
How the government robs Peter to pay him back.
By James L. Payne, Reason Magazine February '94

When the overhead costs are added together, (24 percent compliance costs, 33 percent disincentive costs, and 8 percent other costs), they total 65 percent of tax revenue.

But Bush stressed that "when it comes to tax relief, once is not enough. I signed a tax relief bill that will continue to reduce federal taxes by more than a trillion dollars over the next 10 years."

This just shows that Dubya and the boys haven't got a clue. So here's the clue, Dubya.

It's not the tax RATE stupid!

It's the IRS!

Certainly, the tax rate is way too high and needs to be lowered. But, just lowering the tax rate without eliminating the IRS is like putting a Band-Aid on a compound fracture. You may stop the bleeding for a little while. But, you have done nothing to repair the underlying broken bone or treat the infection, which will continue to spread.

In fact, there is already indication that the recently passed (and blatantly misnamed) US Patriot Act is driving numerous US companies with offshore holdings, to seriously look at moving their entire base of operations offshore, not to avoid taxes, but to limit liability. The reason is simple. The US Patriot Act specifies some very severe penalties for US companies with offshore divisions/affiliates, that are not constantly in compliance with the constant changes in the US Treasury's Office of Foreign Assets Control (OFAC) lists of Specially Designated Nationals and Blocked Entities (SDN-BE list) in all of its transactions, both domestic and foreign - even if the foreign transactions are between two foreign countries and involves no US entity. This presents a severe liability for those companies, not to mention an additional heavy compliance cost.

This has little, if anything, to do with stopping terrorism and everything to do with the IRS being able to monitor the offshore transactions of US companies for tax purposes. Even companies that are meticulous in paying their taxes are finding the risk created by this act to be to great to be offset by the convenience of being a US company. That is why a number of large US companies are now seriously looking at how and where to move. They are NOT worried about the level of taxation. It's the liability of having to meet impossible requirements that has them looking offshore.

In their vain attempt to control the wealth in the United States, Dubya and the boys are actually driving wealth out of the United States. They say that greed makes you blind, so I suppose that their greed is making them blind to what their power grab is actually causing. On the other hand,... maybe they do know what is happening, but they have an even more sinister plan up their sleeves.

Either way, the tax cut propaganda is just that - propaganda. A tax cut, no matter how much it is needed, is nothing more than a Band-Aid The IRS is the run-away infection that is killing the body.