I think we ought to abolish the IRS and instead move to a simple flat tax where the average American can fill out taxes on postcard… Put down how much you earn, put down a deduction for charitable contributions, home mortgage and how much you owe. It ought to be a simple one-page postcard, and take the agents, the bureaucracy out of Washington and limit the power of government.
Andrew’s Note: Unfortunately instead of having less need for the IRS we’ve added a whole new line of business to their portfolio. Beginning in 2014 the IRS will be monitoring your health insurance to make sure you’re in compliance with the Affordable Care Act AKA Obamacare…I guess it makes a kind of sense…the current level of taxation does make me sick!
Government’s view of the economy could be summed up in a few short phrases:
President Ronald Reagan
A Penny Saved Is A Government Oversight.
As seen on Heiner’s Insurance Center’s sign in Ogden Utah
Taxes are what we pay for civilized society.
Justice Oliver Wendell Holmes, Jr.
Andrew’s Note: When Justice Holmes wrote that Federal taxes were less about 4% of Gross Domestic Product (GDP), in 2012 Federal Taxes now consume about 16% of GDP and we spend a great deal more than that.
What I’m not saying is that all government spending is bad. It’s not – far, far from it, but there is no free lunch, as a former colleague of mine used to say. There is no public tooth fairy. Father Christmas does not work on the Treasury staff this year. You can never bail someone out of trouble without putting someone else into trouble.
Dr. Arthur B. Laffer
Conservatives who favor federal “wars” on drugs, gambling and other behaviors should understand the damage they have done to the constitutional underpinnings of limited government.
Andrew’s Note: I never cease to be amazed by the fact that in many places the government protects the people from the ‘evils’ of gambling by granting itself the sole concession in the form of State run lotteries or from the ‘evils’ of drinking by only offering alcohol through State owned ‘ABC’ stores. How can anything be a crime when there is no victim? In the land of the free we should even be free to make poor decisions.
Individually, Americans do not deserve to be subservient to such a fear-mongering, intimidating and powerful agency as the Internal Revenue Service; but collectively, we do…
In order to squeeze out of us half of what we produce [taxes and regulatory burden], a government tax collection agency must be ruthless and able to put the fear of God into its citizens. The IRS has mastered that task. Congress has given it powers that would be deemed criminal if used by others…
The bottom line is that members of Congress need such a ruthless tax collection agency as the IRS because of the charge we Americans have given them. We want what the IRS does — namely, to take the earnings of one American so Congress can create a benefit for some other American. Don’t get angry with IRS agents. They are just following orders.
From my earliest childhood I have been toiling & wearing my heart out for other people, who took all I could do & suffer for them as no more than their just dues.
Senator John Randolph
Taxes are necessary to fund the constitutionally mandated functions of the federal government. If Congress spent according to its authority under Article 1, Section 8 of our Constitution, taxes wouldn’t be any more than 5 percent of the gross domestic product, as it was between 1787 and 1920, as opposed to today’s 20 percent.
President Obama held a press conference earlier today, and he said he still wants to close the Guantanamo Bay prison facility, but he doesn’t know how to do it. He should do what he always does: declare it a small business and tax it out of existence. It will be gone in a minute…
Isn’t it appropriate that the month of the tax begins with April Fool’s Day and ends with cries of “Mayday!”
Andrew’s Note: Think about it for a minute or follow the link… I know you expected a comment on communism or socialism today…not a tax quote…just so that I don’t disappoint…here’s a little graphic to get your capitalist blood pressure up!
Let’s play make believe for a moment so that we can understand the Internet Tax Madness that is going on in the Senate right now… with the aptly misnamed Marketplace Fairness Act, S. 743.
Pretend you own a successful specialty store in Vail, Colorado selling the world’s best widgets (or maybe prepper supplies). Everything’s going along swimmingly until there’s a convention of State and local politicians and bureaucrats from all over the country in town. Several of the conference attendees, let’s call them Larry, Moe & Curly decide to skip out of their taxpayer funded educational opportunity and stop by your store. While they’re browsing your store they notice a couple of their neighbors, let’s call them Joe and Shemp from back home buying your wonderful widgets with their hard earned money.
When you ring up Joe and Shemp’s sale you follow all local laws including collecting applicable local taxes. When Larry, Moe & Curly notice Joe & Shemp’s purchases they turn green with envy. You notice them whip out a couple of slide rules and start calculating something. What they are calculating is all the ‘lost’ tax revenue that they could have made if Joe, Shemp and everyone else would have purchased their widgets back home…so that Larry, Moe & Curly’s various levels of state and local government could have taken their ‘fair share.’
Five days later than last year…
Tax Freedom Day® is the day when the nation as a whole has earned enough money to pay off its total tax bill for the year. Tax Freedom Day provides Americans with an easy way to gauge the overall tax take-a task that can otherwise be daunting due to the multiplicity of taxes at various levels of government and “hidden” taxes and fees that are often buried in the cost of living. Tax Freedom Day computed by dividing total tax collections by the nation’s income, as reported by the Bureau of Economic Analysis. Every dollar that is officially called income by the government is counted, and every payment that is officially considered a tax is counted. The resulting percentage is then converted into days of a 365-day calendar year.
Tax Freedom Day 2013 is April 18th. In 2013, Americans will pay $2.76 trillion in federal taxes and $1.45 trillion in state taxes, for a total tax bill of $4.22 trillion, or 29.4 percent of income. April 18 is 29.4 percent into the year. To read the full report, click here.
Today’s a good day to reflect on what a fair level of taxation is. If someone taking 100% of the fruits of your labor is slavery and taking 0% is absolute economic freedom then what’s the balance that results in the least loss of freedom yet maintains our necessary spending? I say necessary because as Dr. Thomas Sowell says in today’s quote “The real goal should be reduced government spending, rather than balanced budgets achieved by ever rising tax rates to cover ever rising spending.” There’s no doubt that we’ve collectively elected generations of politicians from both parties who have been hell bent on taking our hard earned income in order to line their pockets, favor their friends and build their pet projects.
I’m just back from a few weeks of travel and will share some of the thoughts I’ve been toying with over the next week or so and some of the preparedness projects that the weather will finally let me tackle.
The number of [welfare] recipients began to exceed the number of contributors [taxpayers] by so much that, with farmers’ resources exhausted by the enormous size of the requisitions [taxes], fields became deserted and cultivated land was turned into forest.”
Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the incentive for risk, investment and effort – thereby aborting our recoveries and stifling our national growth rate.
President John F. Kennedy, Jan. 24, 1963
The existing tax code makes compliance difficult, requiring taxpayers to devote excessive time to preparing and filing their returns… and it undermines trust in the system by creating an impression that many taxpayers are not compliant, thereby reducing the incentives that honest taxpayers feel to comply.
If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our callings and our creeds, as the people of England are, our people, like them, must come to labor sixteen hours in the twenty-four, and give the earnings of fifteen of these to the government for their debts and daily expenses; And the sixteenth being insufficient to afford us bread, we must live, as they now do, on oatmeal and potatoes; have no time to think, no means of calling the mismanagers to account; but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow sufferers; And this is the tendency of all human governments .
A departure from principle in one instance becomes a precedent for a second, that second for a third, and so on till the bulk of the society is reduced to be mere automatons of misery, to have no sensibilities left but for sinning and suffering… And the fore-horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression.
Note from Andrew: Today I’m pleased to introduce you to a new periodic column by my friend Roger Reality. Roger has been a key mentor in my life particularly with regard to critical thinking and analysis, and as you will see…he speaks with passion. Enjoy.
I have become increasingly irate at the insanely skewed tax code in this country. The more that I have researched the situation and discovered the facts the greater has become my ire with a “system” that is so patently unfair that it is almost difficult to believe!
Please take a close look at the facts as assembled and organized by the great folks at the nonpartisan Tax Foundation from the raw data available from the Internal Revenue Service (IRS).
For tax year 2006, the last year for which complete data is available, there were exactly 133,208,934 federal individual tax returns filed. That means the bottom 50% of filers constitute 66,604,467, roughly 67 million filers. So exactly how much of the federal government’s income tax revenue does the bottom 50%, those 67 MILLION “taxpayers”, put into the pot?? How about a mere 3.11%!! So does that sound “fair” to you? It does to a lot of people, particularly those in that 50% and those who pander to them. But before you decide, let’s look at some more numbers.
So a relative handful of taxpayers in each of four states paid more in taxes than the 67 MILLION did together! Continue reading