When the federal income tax was established in 1913, the tax return consisted of only one page and the entire tax code itself consisted of only 14 pages, with a minimum tax of one-percent and a maximum tax on the extremely wealthy of only seven-percent.
[/vc_column_text][banner300 banner=”5517620b381df”][vc_column_text]At the time of its passage, a provision was considered to make it unlawful for government to raise the income tax rate above 10 percent, but the thought of it going above that rate was considered so outlandish and impossible that it was abruptly tossed aside.
Now the top rate, 39.6%, is almost four times the rate considered an outrageous impossibility by those who created the original income tax.
Today, with more than 74,000 pages (over 23 feet high) of largely incomprehensible income tax regulations — burdensome, unproductive compliance costs of more than $300 billion annually — indicates an abomination which would literally make our Founders roll over in their graves in disgust and disappointment:
The 35% corporate rate is the highest in the developed world, destructively forcing American businesses overseas, resulting in millions of job losses for Americans, inflating our welfare roles.
The federal tax system serves the selfish and greedy goals of lobbyists, entrenched politicians, and unelected bureaucrats in Washington, D.C. and is a depressing, economic nightmare for the rest who foot the bill.
And of course Republican Richard Nixon’s wet dream, about using the unnecessarily powerful IRS to target political opponents, was fulfilled by Marxist Democrat Barack Obama, who used apparatchik Lois Lerner to illegally target the American Tea Party movement, simply because they uphold constitutionally limited government and values that made America the most free and most prosperous country in the history of the world.
Tax Day, April 15th, has become an unnecessary major source of stress and anxiety for millions of hardworking American taxpayers, kept up at night wondering if they’ve complied with the impossible tax code.
Our tyrannical tax system punishes productivity, success, hard work, innovation, savings and investment and, after paying taxes on the same dollars several times, even death is considered a taxable event with the dreaded estate tax.
We need to return to a system where taxes are fairly collected to fund the legitimate functions of government.
The Founding Fathers never envisioned an income tax, which is why it took the 16th amendment to get it passed. Our present tax system is politicized and manipulated to shape citizen behavior and redistribute wealth (the richest 1% pay nearly half of ALL federal income, while the bottom 60% pay less than 2%).
This is accomplished by fanning the divisive flames of class hatred to buy votes and hand out political favors to whichever special-interest group has the most high-powered lobbyists and tax attorneys.
Big business and big government love the reams of pages of regulations the IRS spews because of the effect of squishing small businesses and start-ups, groups that don’t have the wherewithal to buy the number of accountants and attorneys necessary to plow throw the gobbledygook.
It is completely naive to think that the current monstrosity can be properly and fairly “reformed” or “simplified.” Multiple failed attempts, over several decades, have been made to simplify and reform the current system, only to see complexity return in short order. We can do better. We must and we can.
While there are going to be drawbacks to any tax system and there is no such thing as a perfect tax, the well-researched (NOT V.A.T – Value Added Tax!) is the fairest, simplest, least intrusive, and most easily administered replacement to our destructive current system.
Imagine a non-regressive, revenue neutral, simple, transparent national retail sales tax that would abolish the hated IRS, and allow you to keep 100% of your income by eliminating all federal personal and business income taxes, along with gift, estate, capital gains, dividend, alternative minimum, Social Security, Medicare, payroll and self-employment taxes.
Imagine a tax system that is an incentive for earnings, savings investment, and good old-fashioned American innovation. Imagine a tax system that all current tax avoiders (e.g., drug dealers and others in the black market economy) would have to pay whenever they bought something.
Imagine no loopholes and no favoritism and no cronyism.
The FairTax would accomplish the above and more. It would bring home businesses and jobs from overseas which left to avoid our punishing, anti-business tax structure. This would give our teetering economy a much-needed shot in the arm.
One significant savings is the elimination of the hidden cost of $300 billion per year in compliance costs that individuals and especially all businesses have to pay.
And imagine April 15th being just another day to enjoy spring, not a time of excessive, government-imposed stress and anxiety.
The elimination of all business income tax would cause trillions of dollars in foreign investments to flood into the U.S. economy, and bring home trillions more in American investments currently held in offshore accounts.
Imagine the positive effects the above would have on our economy at a time when it’s desperately needed. American prosperity would soar.
The FairTax is an idea whose time has come.
Are there critics and opponents to the FairTax? Absolutely. There will be critics who currently benefit from special favors they’ve garnered (or politicians who “give” those special favors) from the current abomination of a tax code.
There are valid questions and concerns regarding the FairTax, but the overwhelming majority of them are settled by merely clarifying the common misconceptions of what the FairTax actually is and does.
For example, it’s not a V.A.T. which taxes at each stage of production. The FairTax is a retail tax on new goods and services; it doesn’t increase the cost of goods by 23%. Under our current system, prices of everything we buy are already jacked up by the multiple layers of taxes paid by the providers, which are then passed directly onto us. It’s not regressive because no one pays up to federal poverty level. Opponents will use these and other misconceptions as scare tactics to protect their beloved 74,000 pages of legalese.
Don’t let them. Education is the key. Get educated.
I wholeheartedly support the FairTax and the elimination of the IRS, as well do many congressional leaders, and it’s gaining steam.
A decade ago, I would have rated the chances of getting something as transformative as the FairTax passed somewhere between slim and none. However, with the system gaining steam and with pro-liberty Republicans gaining power (ex: Ted Cruz and Rand Paul), it can be done and we must do it.
Let’s get the IRS off of our backs and restore our nation’s prosperity. Imagine April 15th being like any other day of the year, or a day of celebration, and not one of sweating bullets!
To those who say abolishing the IRS would be impossible, I say that we’ve won two World Wars and put men on the moon, so changing our tax system is achievable and necessary for our economic survival and prosperity.