By CE Marshall
Today, in honor of Tax Day this week - Tuesday, April 18th, I am publishing my thoughts on income tax. There are few things more idiotic than an income tax, whether it be at the state or national. It is literally encouraging people to not work so hard or in some cases to stop working altogether. How is that a logical incentive for people? There is a need in this world amongst humans to encourage effort, not discourage it. There are other ways to increase tax revenue other than holding people back from working.
In researching income tax, the writer finds much judicial argument, going back to the 1800's involving taxation of income which has been legally challenged as overreach of federal power according to the constitution in several supreme court cases. The very first income tax in the United States was established during the Civil War, 1861. During wartime, some argument could be made to have an emergency fund from income taxes for financing defense of the country- temporarily! Over the years though, the "ruling class" could not help itself and peacetime income tax became the law of the land when the sixteenth amendment passed in 1913. In 1913, a new amendment passed through Congress enabling them to tax income as they please. It reads ;
Sixteenth Amendment
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
Of course, I comment "as they please" but that is a slight exaggeration in that our leaders do feel the need to limit the money taken lest their taxes cause so much outrage that they don't get reelected. Perish the thought! Instead, they simply spend money that doesn't exist.
The federal tax system and the IRS have used the 16th amendment as a power grab enabling them to manipulate how people should live through threat of higher taxation for specific actions that it deems acceptable or not acceptable. Another concern is the real possibility of the IRS using it's power to tax particular groups more due to their political positions or opinions. In addition, every corporation has a long list of lobbyists instructing Congressmen who and what they should and should not tax. The tax code has become so gargantuan and loathsome that there is not any one human being on earth that could possibly explain it. So, we have huge corporations and vast numbers of accountants that now depend on the taking of income in order to survive. To eliminate the income tax would be eliminating their career so one can easily predict their opinion of this specific blog. Although I sympathize with such concern, that is not a reason to maintain such an unfair and ineffective means of increasing government revenue and, consequently, the ruling class's power over the American citizen. There are other more fair and effective approaches to funding the state and federal governments rather than stealing the citizen's money. Most especially stealing from the hardest working, smartest, most innovative, most creative. These are the very people we want to encourage to work more in order that the economy is robust, therefor benefiting everyone.
( I wrote such a blog on just that, and you can read it at this link; https://chuckmarshall.blogspot.com/2022/08/national-sales-tax-over-income-tax.html)
In short, a consumption tax would be far better in encouraging a reduction in waste, in discouraging over-consumption and even helping to solve pollution and climate change issues. Sin taxes (tax of alcohol and cigarettes to those not so initiated) have been used for centuries very effectively. I have always thought a luxury tax would be logical as a way to fairly tax wealthier people. To "stick it" to the "fat cats" as many more socialistic minded people demand. A luxury tax would tax those that can afford it while increasing revenue effectively and to pay it is their choice if they want the luxury item, not the government's. Most wealthy people would pay it, and perhaps even brag about how much they paid in taxes. One simple example might be a rich man pays 30% tax on the purchase of a Rolls Royce, but to him it's worth it. He doesn't mind to pay more. It boosts his ego ! That's what he lives for !
Let's get smart about taxation and stop the lunacy and tyranny that is at the heart of state and national income tax.
In My Humble Opinion......
