“Taxes are the price we pay for a civilized society”
Taxes can be assessed at a reasonable rate and serve some very fundamental and necessary purposes; or they can be expanded to a very high rate depending on how much you want from your government. Any reasonable person will agree that some basic societal needs require some form of taxation. The question of “basic” and “need” will always vary depending on who you ask. So, the question then needs to be asked? What is the legal limitation on where and how the government can spend your taxes?
The Framers of the Constitution were very well aware that government will always have an endless appetite for revenue unless they are limited in some very restrictive way. The Framers also were aware that taxes are the easiest way to enslave a free people, so they were very careful in drafting a constitution that did not allow the government the power to lay a direct tax on the people (property).
That is why you will find two very well defined points that are covered in the Constitution. The first is that taxes must be indirect and apportioned. The second is that the Federal Government is limited to its jurisdiction by the constitution and to the limited powers that the Constitution delegated to the Federal Government; this would clearly mean that to tax or spend beyond those limitations would therefore be unconstitutional.
The Supreme Court has ruled repeatedly to uphold these same principles, so why does the Federal Government continue to defy the Constitution and continually and repeatedly break the law regarding the income tax?
The question should not be restricted to how high the taxes are, but where and how they are assessed and on what?
Here is an example from a ruling by Federal District Court Judge James C. Fox for the Eastern District of North Carolina on March 21, 2003. In the case of Sullivan v. USA (03-CV-39)
Lt Colonel Donald Sullivan filed a Motion for a Temporary Restraining Order to stop the Iraq War until Congress met and issued a formal declaration of war to the President as required by the Constitution in accordance with Article 1 Section 8 (11) which states: “Congress shall have the power…to declare war….
“THE COURT: WELL, I THINK IT HAS OCCURRED OVER…I DON’T DISAGREE WITH EVERYTHING THAT YOU SAY. I THINK THAT IT HAS OCCURRED OVER A LONG PERIOD OF TIME, AND CONSEQUENTLY, THERE IS LESS HESITANCY ON THE EXECUTIVE BRANCH TO PRESERVE ANYTHING. IT’S JUST LIKE KIDS WHO BREAK A RULE THE FIRST 200 TIMES AND AFTER AWHILE THEY DON’T CARE; THEY DON’T ACKNOWLEDGE THAT THE RULE EXISTS. I DON’T SAY THAT YOUR ARGUMENTS ARE WITHOUT MERIT. I REALLY DON’T.”
Further, at page 23, lines 24-25 and page 23, lines 1-22
“THE COURT: I WILL SAY I THINK, YOU KNOW, COLONEL, I HAVE TO TELL YOU THAT THERE ARE CASES WHERE A LONG COURSE OF HISTORY IN FACT DOES CHANGE THE CONSTITUTION, AND I CAN THINK OF ONE INSTANCE. I BELIEVE I AM CORRECT ON THIS. I THINK IF YOU WERE TO GO BACK AND TRY TO FIND AND REVIEW THE RATIFICATION OF THE 16TH AMENDMENT. WHICH WAS THE INTERNAL REVENUE, INCOME TAX, I THINK IF YOU WENT BACK AND EXAMINED THAT CAREFULLY, YOU WOULD FIND THAT A SUFFICIENT NUMBER OF STATES NEVER RATIFIED THAT AMENDMENT.”
MR. SULLIVAN: TRUE STATEMENT.
“THE COURT: AND NONETHELESS, I THINK IT’S FAIR TO SAY THAT IT IS PART OF THE CONSTITUTION OF THE UNITED STATES, AND I DON’T THINK ANY COURT WOULD EVER- WOULD SET IT ASIDE. WELL, I’VE SEEN THAT – I’VE SEEN SOMEWHERE A TREATISE ON THAT, AND I THINK IT WAS – I THINK I AM CORRECT IN SAYING THAT ACTUALLY THE RATIFICATION NEVER REALLY PROPERLY OCCURRED.
MR. SULLIVAN: CORRECT, SIR,
“THE COURT: YET NONETHELESS, I’M SURE NO COURT’S GOING TO SAY THAT THE 16TH AMENDMENT PERMITTING THE INCOME TAX IS VOID FOR ANY REASON, ALTHOUGH I WOULDN’T MIND FILING FOR A REBATE MYSELF.”
Actually someone did go around the country and collected certified copies from all of the states that allegedly ratified the 16th amendment and found that the amendment failed miserably. His name is Bill Benson and it is chronicled in his book the Law That Never Was. The Federal Government has actually sued Mr. Benson to try and confiscate the seventeen hundred pages of certified evidence. I wonder why this should scare them.
Bill Benson’s book can be purchased online it is titled The Law That Never Was. You can google it using the books title or Bill Benson.
So, this is a case of fraud by the Federal Government (Secretary of State Philander Knox doctored the documents and then declared the amendment was passed. Sounds like fraud to me) and this Judge says that this fraud became part of the Constitution. This would mean that the very Court (Supreme Court) entrusted with the preservation and interpretation of the Constitution allowed a fraud to become part of the Constitution. That sounds like a very self serving defense to me.
Government will always prefer certain forms of taxation over some other forms:
You would think that it would make no difference to them. But, the truth is that taxes can be used for much more than raising revenue to operate legitimate functions of government.
“The power to tax is the power to destroy” Chief Justice John Marshall.
We will now do a brief comparison of a consumption tax vs. An Income or Value Added Tax. And why the Federal Government prefers the latter!
The Power to Destroy-The Economy:
The Income Tax or a Value Added Tax gives politicians the power to manipulate the tax code to best serve the special interests that they represent. It is no accident that the largest and most powerful lobby in Washington DC is the tax lobby. As FAIRTAXERS we all know how destructive the Income Tax is to our economy.
The Power to Destroy-Class Warfare:
Taxes are the number one issue that we are subjected to every two-four years. The debate is put forth by politicians in every election of how we can best be served by the tax code, lower taxes, higher taxes, who should pay more, who should pay less, who should pay no taxes at all, who will get a tax break, or not, and what items should be penalized with a higher tax to best control our behavior (sin tax). Every election they manipulate us by arguing which politician or political party has our best interest at heart, but of course that depends on where you are in the social and economic order. But, one thing is guaranteed and that is “we will be pitted against each other”, sometimes by our economic status, ethnicity, ideology, etc.
The Power to Destroy-Ownership of Property:
The Income Tax transfers all first right of property to the Federal Government. The death of a property owner proves this. The income tax allows the government to determine how much of the family estate belongs to the government, before the heirs, can continue to live in the family home, or continue to operate the family farm, or business, so who owns the property under the Income Tax Code? The Federal Government is the owner under current tax law, (the estate tax) they can tax estates up to 100% at the whim of Congress. I find this concept interesting when you consider the fact that the Federal Government cannot tax property within the boundaries of the States, but it seems they found a way around that little “legal technicality”.
The Power to Destroy-Destruction of lives:
The IRS which has been proven to be inaccurate in more than 50% of their audits can and does seize property every year and in many cases will auction it off before the person has had their day in court, they can do this because they already own the property. Thousands of Americans have their lives destroyed every year by the government in the name of paying their “fair share” I have personally lost two friends to suicide due to IRS actions. You are much more likely to be subjected to an extensive audit after a bankruptcy, death of head of household, Divorce, or other personal disasters. This is a very common practice because it is much easier for the IRS to make a case at a time when you are least able to defend against it.
The Power to Destroy-IRS as a weapon:
We all witnessed the behavior of the Politicians in Washington during the bonus debacle with AIG. Congress proposed a 100% income tax on the individuals who were owed those bonuses. What does this show us, it shows that they view the IRS Code as a weapon at their disposal to use to punish those who do not please them or fit their agenda? The only reason that they did not use this tactic is that the tax would be retroactive and therefore blatantly unconstitutional (no laws can be in-acted in ex post facto). ACORN is an organization that has been proven to be no-more than a strong arm Mafia to be used by the left wing of politics, especially the current administration. ACORN is one of almost 300 such organizations being funded by a so called “private company” known as Citizens Consulting Inc. This is a perfect example of how the IRS is used selectively by each administration. If there was ever an organization that would (should) be audited by the IRS and probably the Justice Department it would be ACORN. But, this is not going to happen because unlike the individuals at AIG this group of thugs (brown shirts) works for the current Presidential Administration’s best interests. ACORN will be working in the field for the 2010 Census. Couple this with the fact that the Obama administration has moved the Census count from the Commerce Department to the White House under the supervision of that bastion of virtue Rahm Emanual. If any ethnic or political group with an agenda does the Census they have the opportunity to change legislative districts by the way they take the Census, can you guess the outcome of that one? The Clinton Administration compiled an IRS file on certain people “just in case” they needed them. The Nixon Administration was known to have done this as well!
The Power to Destroy-IRS Makes U.S Business Non-Competitive:
We currently have a Corporate Income Tax of 20% and will be going up to a higher rate of 25-30% under the current administration.
This has the effect of encouraging U.S Businesses to do more business outside the U.S and also encourages business to keep money in tax havens (offshore banks) to avoid the heavy corporate tax. This figure has been estimated to be as high as twenty trillion dollars and as low as thirteen trillion dollars. The current administration has sworn to go after that money vigorously. But, if you have any understanding of how business views taxes then you will realize that this will only give the government more money to waste while driving up prices to the consumer. Businesses view taxes as a cost of business and pass those costs onto the consumer. “Corporations do not pay taxes they pass them along” All taxes are eventually a consumption tax.
America is a very desirable location for companies around the world, whether it is for the quality of life, availability of highly skilled workers and technology or security. But, with a corporate tax rate that is one of the highest in the world they are never going to locate here. Ireland has a corporate rate of 10-12.5% this means that a company looking for a medium range qualified workforce would locate in a place like Ireland for the lower rate and still enjoy a good quality of life in a beautiful country. Many of our American companies over the last decade have moved to Costa Rica because Costa Rica does not have a corporate income tax.
Value Added Tax VAT:
The Federal Government wants a Value Added Tax. The only reason the federal government would want to structure a sales tax in this manner is to be able to manipulate us the same way they do with the Income Tax.
The Value Added Tax is just a sales tax, but hidden because it is added before the final sale. It can be manipulated to fit whatever their social agenda is and who they are trying to punish or reward.
It also allows them to keep the Income Tax in their arsenal of taxes.
The FAIRTAX-Sales Tax:
I am a reluctant supporter of the FAIRTAX. I have studied the history of the Income Tax and the Internal Revenue Code in Title 26 of the U.S Code for over ten years and have concluded that not only was the 16th amendment to the Constitution not ratified, but was fraudulently declared to be by Secretary of State Philander Knox. Even if the 16th Amendment had been ratified it is still clear that the Income Tax is improperly applied by the IRS. The Income Tax was only supposed to apply to corporate income such as increases on investments, rents, etc. The IRS has construed the definition of income to encompass wages, tips etc as income and this is false. The Federal Government was never supposed to be an all powerful central government. The Federal Government was intended to be very limited in scope and powers delegated by the States of a Republic. We are not a Democracy, we are a Constitutional Democratic Republic. But, given the choice between the FAIRTAX and the criminal operation of the IRS I am more than happy to support the FAIRTAX.
The FAIRTAX will definitely restore the economy. The FAIRTAX would repeal the alleged 16th amendment and return the taxing authority to the States and end the eternal class warfare in our country. The biggest payoff of all would be that 140,000 IRS workers would have to go find honest work.
The very argument against the FAIRTAX is a class warfare argument and is deeply rooted in the progressive movement.
1. FAIRTAX would allow U.S companies to compete in the world market without the burden of the
corporate income tax
2. FAIRTAX would make the U.S a desirable place for businesses to
locatet from anywhere in the world.
3. Somewhere Between 13 and 20 trillion dollars would come back to America from tax havens, now
that would be a real stimulus.
4. Everyone would become a taxpayer while removing the poor from
Paying taxes with a rebate of 100% of taxes paid up to the poverty
5. Employers would no longer be an unpaid tax collector.
6. Everyone would bring home 100% of their paycheck.
7. No more filing a tax return with the IRS.
8. Your finances would be private from the government for the first time in 95 years.
9. The 16th amendment would be repealed.
10. April 15th would become just another day like all the other days of the year.
11. There would be no taxes on any thing that was previously purchased (used).
12. The price of all goods and services would be lower due to the fact that the embedded taxes
would be removed, in most cases by the amount of the sales tax and in some cases even more.
13. And last but not least, the IRS would be out of business.