The Fairest Tax

A Utopian Dreamer is one who thinks we can create “Heaven on Earth” by having the Government screw the Hell out of the people 🙂  – Dr. Society
The Fairest Tax is one that is not levied directly on people, but rather an indirect excise tax on transactions, which is of equal rate to all,  with no exemptions, and which funds the government from the bottom up (so that the top level does not control the lower levels by controlling their funds).
Taxation of wealth, in the form of income, property or estate, to support the government is a moral hazard (the moment tax from one person or group is used to benefit another, it become theft), gives incentive to avoidance and fraud and is against the founding principles of the Constitution which prohibited a direct tax on the people.  Direct tax  makes an end run around the states, fills the coffers of the Federal Government at the expense of the State, creates too much top down control due to all funds going directly to the top and the progressive tax rate reduces incentives for people to increase their incomes and treats people unequally under the law.
Only an amendment that broke the constitution with the support of a Politically intimidated supreme court allows this theft to be “legal”.  Income tax requires an invasion of privacy, opening up private papers to the government, it steals the very life and liberty of the people in the time it takes to assemble the paper work, to comply with the wealth taxes.  Tax exemptions and subsidies control the life of people, how they save, how they invest and even influences where they live.
With a direct tax, in principle, the government owns all of your income, property and wealth.   Do you own the tax they currently take?  You might have temporary possession but you have to yield it to the government.   With salary withholding, you don’t even get temporary possession.  Follow the logic.  There is no limit on the tax rate the Federal Government can impose on what you legitimately earned.  FDR was willing to impose a 100% tax.   If the government can take everything and you can’t refuse, then you effectively don’t own anything.  Rather, the government is granting you the privilege of keeping some of what you earn.  That’s why they say you are stealing from the government is you don’t pay taxes.  They own it.  Not only do they own your wealth, they own the life and liberty, time, labor and resources that you invested in your earnings.  They own YOU!   You are a slave or at best a share-cropper.

Instead the 16th Amendment should be repealed and the Federal and State governments should be financed solely by  an equal rate excise tax on transactions such as retail sales.  At least you have control over when and how much tax you pay, based on your purchases. Can’t afford the tax this year, buying that TV set,  couch or new car next year instead.   The people can refuse to buy any products if the tax is too high.   The infrastructure is already in place., Tracking public transactions does not violate privacy or influence the market or people’s lives.  Products that come from foreign sources, not directed to a re-seller, can be taxed upon arrival into the USA, based on who is receiving the product.

It is intrinsically progressive.  The rich buy more and pay more tax.  The very poor do not pay taxes.

To help the poor, no consumption tax would effectively be collected on purchases up to the poverty level, as set by Congress.  Every person living in the US would get a check (a pre-bate) to cover paying the consumption/sales tax.   For example, if the poverty level is $25,000 and the flat sales tax is 20%, then everyone gets a check for $5,000 which pays for the 20% tax on the first $25,000 of purchases.
The 16th amendment would be repealed, making income tax unconstitutional, as it was before that amendment, and the IRS would be eliminated. 
It would end all lobbying for special tax exemptions and the control the Federal government exerts through those exemptions.
The Fair Tax is an idea in the right direction, but is not comprehensive enough.
As long as the Federal government receives all the proceeds of the Consumption tax, the Federal Government still retains control of the States and the people because it can give or deny funding to them. Lobbying for special privileges, pork and corruption would continue.
 The Fair tax would eliminate all taxes from business, income, capital gains, estate, property, gas, liquor etc. on the federal level and replace them with one equal/flat rate retail consumption/sales tax across the nation with no exemptions.  Good.
However, The Fair Tax also does not change the way States and local government collects revenue; – through income, property, wealth and estate tax which is theft of property ownership/stewardship.

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