The Federal Income Tax

The Federal Tax Code is a popular tool for members of Congress to bring in more spending money and repay obligations to special interests. The 60,044 page income tax code has been amended and patched so often that it is complex, convoluted, inefficient and unfair.

The tax code includes: depreciation schedules, multiple income tax brackets, complicated deduction rules and an Alternative Minimum Tax. It is so complex that the Internal Revenue, itself, has difficulties rendering opinions on certain of its provisions.

The income tax is unfair because of the double taxation of Estates, Social Security income and dividends. It is undemocratic because it penalizes individuals for their financial prowess. The tax treatment of the wealthy is analogous to making Tiger Woods play a longer golf course than the other competing golf professionals because of his superior skills. The code is costly because of the time and expense required to fill out the complicated forms. Finally, the Alternative Minimum Tax provision directed at wealthy individuals affects the middle class now because it wasn't indexed for inflation; an example of the unintended consequences of Congressional micromanaging.

Substituting the flat tax for the prevailing income tax will instantly increase the effectiveness of citizens and businesses in America. The economies of the twelve foreign countries, which switched to the flat tax, have improved dramatically. The flat tax is the ideal income tax because it simple, fair, progressive, and cost effective. It's: - simple, can be filled on a post card - fair because everyone pays the same percentage of their income - progressive, the higher the income, the higher the tax - cost effective, eliminates the tax preparation time of individuals and/ or using costly tax professionals. This tax would save millions of dollars of the IRS budget ($11.4 billion, 2008) by reducing the number of its employees (86,585, 2006). There are other valuable adjunct benefits to the flat tax. It eliminates double taxation, simplifies tax planning, enhances the economy, increases privacy, improves compliance, and generates more tax revenue.

There will be many vociferous critics of the flat tax. Naturally, the adversely affected individuals, IRS employees, accountants and tax lawyers, will oppose these changes in the present Federal Income Tax Code. Politicians will oppose this tax because it will deprive them of a powerful tool to stay in office. A blatant example of a member of Congress using the tax code, to satisfy a sponsor, is the famous Gallo Wine Amendment. In 1978, Julio and Ernest Gallo helped Senator Alan Cranston win a difficult re-election in California. Cranston returned the favor by getting a tax amendment passed on a Saturday, with few Senators present that allowed the Gallo family to spread their inheritance payments over several years.

The benefits of the flat tax extend beyond simplicity and fairness. After-tax income will rise. There will be renewed work incentives. The reduction of taxation on investments will shift capital to producing goods and services. This shift will create new businesses and industries with the concomitant increase in employment. Industries will be encouraged to locate in the USA and the shift to off shore jobs will decrease. All of these positive changes will insure the continuous growth of our economy.

Art Woodrow, a veteran of World War II who is dedicated to restoring our democratic process, is the founder of The Democracy Conservator Foundation [http://www.democracyconservator.com/]. DCF is a not-for-profit, apolitical organization seeking to increase the involvement of U.S. citizens in the political process and to encourage the discussion and debate of issues our society faces today. To learn more about how to make your vote count, visit [http://www.DemocracyConservator.org]

Americans and Their Intolerable Federal Income Tax

Ron Paul has campaigned against the IRS and federal income tax for decades, but I first heard about this idea during the 2008 presidential campaign. To me, it sounded crazy. No IRS? No income tax? How could that be possible? However, after studying the income tax and what he and other libertarian thinkers have had to say, I too believe an income tax is not only unnecessary but immoral. The fruit of your labor belongs to you. No one, especially the government, has the right to take - steal it from you. If you have to work till May or July to pay your taxes, how is that different than forced labor? And how is forced labor different than slavery?

It may be surprising to many Americans to learn that the income tax is a Marxist idea, but in 1848, Karl Marx in his Communist Manifesto listed the "10 Planks of a Communist State." After the first plank of abolishing private property, he listed the second plank, the establishment of "a heavy progressive or graduated income tax."

In 1913, the income tax taxed the very richest Americans at a 1-7% tax. Those earning less than $20,000 paid nothing. That was the equivalent of $430,707 in 2009 according to the Minneapolis Federal Reserve Bank. Even more bizarre, the IRS claims the income tax is voluntary, yet every American knows the penalty for non payment is jail or heavy fines. The Treasury Department calls it "our voluntary tax system," and the IRS pursues "enforcement programs to promote voluntary compliance" and establishes "strategies to maximize voluntary tax law compliance by emphasizing customer satisfaction." Enforcement of voluntary compliance by emphasizing customer satisfaction! HAHAHA! What dupes we are!

The federal government collects $1,200 billion in federal income taxes and around $3,000 billion in total taxes, but "only" $67 billion is necessary to run the executive, legislative, and judicial branches, including the FBI and the federal court system. Read that again! $67 billion for the executive, legislative and judicial branches. Although life without taxes may be impossible, the federal income tax is not necessary. If the federal government would cut the overseas military empire, it could easily eliminate the federal income tax. However, the political establishment, uses the tax for social and economic manipulation.

This Intolerable tax drains the economy, is time-consuming, confusing and frustrating for Americans. The tax code consists of 3.4 million words and would fill 7,500 pages. In 2006, the code and regulations together were 66,498 pages long. In 2006, Americans spent 6.4 billion hours filing their taxes. In fact, the American "Tax Army" employs 1.2 million people. That's more than the .9 million armed forces stationed in the United States. The estimated total cost of collecting taxes is $63 billion, just $4 billion short of funding general government and law enforcement ($67 billion). The IRS itself employs 91,000 and will spend $11.6 billion in 2009 collecting taxes.

We Americans need to stop listening to the politicians, bureaucrats, and special interest groups and start thinking for ourselves. Why are we supporting overseas troops and bases? Why do we support an empire? Why do we allow the federal government to intervene in the internal affairs of other nations? Why do we submit to this intolerable burden, this economic slavery? The American Colonists rebelled over miniscule taxes in comparison to our taxes. Our Founding Fathers would be appalled by what we submit to.

"A slave is one who waits for someone to come and free him." -Ezra Pound

Born in Oklahoma, Raised in Texas, Studied in Mexico and Spain, Taught Spanish in Thailand, Living in Hawai'i, Orthodox Christian, Libertarian, World Traveler, Writer, Sovereign Individual, Sangria Drinker, A Psychologically Unemployable Vagabond you can read about at Libertas.ws or follow on Twitter.