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
Governments are interested in unlimited spending. Bankers are interested in unlimited income. Understanding the first two sentences of this paragraph explains everything…What few of us have understood is that this has been the most profitable wealth creating mechanism in the history of the world.
My friend and investment guru, “L” suggested this interview with Robert Fitzwilson, founder of The Portola Group. It’s a short, very quick read on the development of the fractional reserve banking system and its relationship with government.
Fitzwilson goes on to say that because the “demands of debt are vastly outstripping the supply of labor and resources” the current system will eventually fail… and be replaced by a similar system. I guess the goal is to not be holding the financial ‘hot potato’ when the music stops.
Note: Tally Sticks were pieces of wood used as early currency. Click on the hyperlink above to read the entire article and learn more.
In its efforts to protect the local taxi industry from healthy competition… and the people of D.C. from clean, affordable transportation… the D.C. City Council has fully embraced the crap…I mean crapitalistic process of using their elected offices to stack the economic deck in favor of their pet constituency.
On Tuesday… the D.C. city council is planning to meet to make ensure that Uber — an efficient and reliable luxury town-car limo service — does not lower its fares.
“The council’s intention is to prevent Uber from being a viable alternative to taxis by enacting a price floor to set Uber’s minimum fare at today’s rates and no less than 5 times a taxi’s minimum fare,” Uber co-founder and CEO Travis Kalanick wrote in a Monday press release.
The move by the council follows an Uber announcement that it was planning to launch UberX — a less expensive version of Uber with less luxurious cars.
Uber’s concept is simple: Sign up and download their mobile phone application, and when you need a car, click a few buttons. Within a few minutes, a luxury sedan will arrive at your door, announce its presence with a text message, drive you to your destination and charge your credit card. It’s more expensive than a cab ride, but there is no waiting on the hold, and the cars and drivers are clean and professional.
…“It was hard for us to believe that an elected body would choose to keep prices of a transportation service artificially high — but the goal is essentially to protect a taxi industry that has significant experience in influencing local politicians,” Kalanick wrote in an email to users. “They want to make sure there is no viable alternative to a taxi in Washington D.C., and so on Tuesday (tomorrow!), the DC City Council is going to formalize that principle into law.”
Thank heavens that the D.C. City Council is protecting D.C.’s residents and visitors from affordable, convenient transportation. It’s a good thing they don’t have any more pressing issues to deal with like…
Look at the School Stats again…85% of 8th graders in the district are failing in English or Math…or both! Now check out that last bullet…the biggest employer in the city…is the city!
In it’s recent decision on the constitutionality of the Patient Protection & Affordable Care Act AKA Obamacare the Supreme Court seems to have granted government the power to assess taxes for not taking action. In this case, a tax penalty for not purchasing health insurance. With government now granted this new power I stopped to ponder what other ‘inactions’ the government may decide to tax.
Her father-in-law died on June 30, the day before the carbon tax was introduced, and was buried early last week.
“I thought to myself, ‘What carbon could possibly be used by putting a man in a grave?’” Ms Maliki said.
“All they did was put the dirt back in. How can they charge us a carbon tax for burying someone?”
Ms Maliki’s son Zaid said the cemetery’s receptionist told his sister-in-law “even the dead don’t escape the carbon tax”.
“We are pretty upset… that comment was a kick in the guts,” he said.
Climate Change Minister Greg Combet said it would be “reprehensible” if any cemetery was taking advantage of grieving families by overcharging them for funerals.
I’ve seen fuel surcharge fees added to a number of my bills recently, but I’d think a carbon tax would only be appropriate from a funeral home or cemetery if it was following a cremation…yes, I’m kidding. This happened in Melborne, Australia.
The Supreme Court’s decision to uphold most of President Barack Obama’s health care law will come home to roost for most taxpayers in about 2½ years, when they’ll have to start providing proof on their tax returns that they have health insurance.
That scenario puts the Internal Revenue Service at the center of the debate, renewing questions about whether the agency is capable of policing the health care decisions of millions of people in the United States while also collecting the taxes needed to run the federal government.
Under the law, the IRS will provide tax breaks and incentives to help pay for health insurance and impose penalties on some people who don’t buy coverage and on some businesses that don’t offer it to employees.
The changes will require new regulations, forms and publications, new computer programs and a big new outreach program to explain it all to taxpayers and tax professionals. Businesses that don’t claim an exemption will have to prove they offer health insurance to employees.
The Tree of Liberty is weeping…