Ch 8 – Abolish the IRS

“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle”- Winston Churchill

“The fundamental class division in any society is not between rich and poor, or between farmers and city dwellers, but between tax payers and tax consumers” – David Boa

“I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents.”- James Madison

“The tendency of taxation is to create a class of persons who do not labor, to take from those who do labor the produce of that labor, and to give it to those who do not labor” – William Cobbett

“I hold in my hand 1,379 pages of tax simplification.” – Delbert L. Latta

“I am favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it is possible.” – Milton Friedman

“Inflation is taxation without legislation.” -Milton Friedman

“We have a system that increasingly taxes work and subsidizes nonwork.”-Milton Friedman

“The Fed is like a jockey riding an elephant. Most of the time, the elephant is docile and controlled. But if something happens to make the elephant stampede, all bets are off.” – Justice Litle

The income tax has increased the intrusiveness of the federal government beyond anything imaginable by those representatives who crafted the 16th Amendment. One possible way to start the process of correcting this is by repealing the 16th Amendment in order to restore the original taxing power of Congress and replace it with a simpler fair tax and a Fair Tax amendment. This would effectively deny 435 representatives, many of whom are bought and sold for by special interests, any power to enact Income or other similar taxes. For example, this would restrict Congress from levying an annual consumption tax. Congress would retain the right to impose a uniform sales tax only.

This simpler sales tax or “fair” tax would be paid by all residents of this country. As people buy and consume more they pay more in taxes, all of their savings would appreciate without any additional taxation. And of course, this would mean that there would no longer be any need for the dreaded IRS because there would be no annual returns to file. Does the average American from the great and over-taxed middle class comprehend what that actually would mean? To make this new Fair Tax Amendment stronger, it also needs to increase the voting requirement for any tax increases to three-fifths of each House with presidential signature required. This would protect the president’s veto privilege and to prevent an “omnibus” tax bill where the Congress hides a great deal of their pork projects. The new amendment can give the IRS several years to phase it out while a new revenue system is put in its place.

Until this new Fair Tax amendment is passed we live in the world of bad choices with the present state of the economy. In a country where the people supported by the government have more votes than the private sector is the beginning of the end of the country we grew up in. That is where we are today. The correct answer to unnecessary projects is to spend less, but the opposite is happening. The deficits and out of control spending is not the answer to stimulate our economy. Unfortunately, the Marxists in power are not really interest in “stimulating” anything other than their power base. The only game for President Obama and his fellow Marxists is to continue to mislead and lie until even his loyal groupies in the Media and out finally wake up and see that they too are about to go over the cliff! There is a real possibility of economic collapse. There will come a time when some of these representatives may actually read a bill they sign into law and realize that a multi-thousand page tax code with the word “simplified” in it is finally killing the goose that lays the golden eggs!

The “simplified” tax code that is a thousand pages plus document is exactly the kind of law that Madison and Hamilton feared when they penned the Federalist paper #62 “It will be of little avail to the people, that the laws are made by men of their own choice, if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man, who knows what the law is to-day, can guess what it will be to-morrow.” It is outright theft from the American people by being incomprehensibly long and mercurial in scope that even tax specialists have trouble deciphering it. Our new Secretary of the Treasury Department had problem with his tax software program – and he is the man who is supposed to oversee the IRS! Of course, he is either an innocent victim of the incomprehensible tax laws or maybe – as Sean Hannity calls him – his real name should be Turbo Tax Cheat Tim! Either way, we are seeing that even at the highest level of Government, folks are either cheating the system or unable to fathom the law.

And if Obama really wants to overhaul something with a positive effect on the Federal Government, why not start by abolishing the IRS, repeal the XVI amendment, and replace it with a fair or Flat tax amendment? Well any Marxist community organizer can answer that question! Let us have all those taxes. In fact let us tax everything. Repeal of the XVI amendment first and abolishing the IRS under this Marxist regime will not happen. So the divided middle class must unite to end this madness. Republicans and Independents must unite to take back our county and one significant way is to propose and ratify a Fair Tax amendment to the Constitution.

It is difficult to understand how members of the middle class who voted for Obama actually believe his lie that he would not raise taxes on anyone making under $250,000 per year. At what point do even the cool-aid drinking supporters begin to understand that these out of control spending policies are creating other state and local taxes as well as indirect taxes such as inflation. They will tax everything that is not nailed down. But then again, they might figure out how to tax that too! Then there is the spectre of inflation and other hidden taxes. It will take more dollars to buy the same products, so isn’t this equivalent to a tax?

The good news is that there are signs that even lefties in the California are getting tired of the tax and spend policies with a recent election to raise taxes being given resounding thumbs down by the voters. If you are a resident of California or one of the other states with a state tax, you are not seeing state and local taxes go down. In California there is over a $20 Billion deficit, so immediately there was an increase in 1% on state sales taxes with undoubtedly more hidden and not so hidden taxes to come. At some point even granola eating Californians will wake up to who their elected officials are and may actually start to vote tax and spend liberals out of office!

And if anyone is keeping his eyes open he notices that local taxes have gone up. He will notice that the price of everything from stamps to parking meters have gone up. He will notice a multitude of taxes and hidden taxes are taking more from their wallet, yet the euphoria of getting rid of that inarticulate white guy and replacing him with a hip young black guy is just too important, too historic a moment to think about out of control spending policies and how these policies are lowering the standard of living for virtually everyone in the middle class.

This economic down turn is not felt the same way by the very rich or the very poor. The poor are getting more services, so they are happy. They are happy with getting the fruits of someone else’s labor. So the rich take and hit and can only buy one yacht this year instead of two. In the end it is the backbone of this country, the great middle class that is taking it in the shorts. This economic down turn does not seem to affect those wealthy Hollywood elites who spent $30,000 a couple for an Obama attended Democrat fund raiser. So not only do the Marxists have the Media and Education monopoly, they have Hollywood stars and moguls for cheerleaders! How long will it take for the middle class to stop supporting those middle class hating lefties’ Hollywood movies and find other ways to entertain themselves?

Please do not call Obama a Marxist or socialist because that would mean that the government has the control of industrial production. The government does not have complete control of the banking industry, the auto industry, or soon to be energy and health yet. But do we really have to have complete government control of all means of production before we call these Democrats what they actually are – Marxists and Socialists?

The tax reform issue is similar in difficulty to Congressional Term limits and Campaign finance reform. There is a massive entrenched group living very well off this corrupt system. Despite the argument for it, not much has happened that gives anyone hope that we are closer to a flat or fair tax. The Tea Parties have given some new life to the issue, but none of this is going to get traction without a repeal of the XVI amendment and getting rid of the income tax. Like a Congressional Term limits amendment, we have to tie the hands of the corrupt politicians and special interest groups. Once the amendment is repealed, the vacuum will then be filled nicely with either a flat or fair tax.

We are long overdue for a change in the way Americans are taxed. Obama is warning us, “the greatest crisis since the Great Depression”. Or is he warning us of his intentions to take advantage of this recession and use it to create the next “Great, Great Depression? And who knows, Obama may try to repeal the XXII amendment and keep his Messianic Presidency going for as long as his buddies Hugo Chavez and Fidel Castro have been in power! The magazine cover – Obama’s picture superimposed with the famous FDR cigarette holder in a 1930 auto – it is enough to make sane men scream.

Article 1, sec. 7 in the Constitution clearly gives the power of raising revenue to the House of Representatives. In sec. 8 Congress shall have power to “lay and collect taxes…for the general welfare and common defense.” So what do we have today? As rogue nations start Nuclear Programs and test rockets, our new administration has seen fit to cut Defense spending while spending trillions of dollars on questionable stimulus packages and financial bailouts. Let us get specific. The Obama administration has cut over $1 Billion from the Strategic Defense Initiative in the same time frame that North Korea is firing multiple long and short range missiles and Iran is moving at break neck speed to produce a nuclear weapon.

There is ample evidence that revenues from any reasonably fair or flat tax will more than cover necessary Government Programs and the National Defense, but those on the other side will not let us take away this gravy train without giving us one hell of a fight. As it stands today, they are winning. They have organization and the existing law on their side. We have a majority of Americans and the best interest of the America on ours.

So are we at least getting a great national defense with all that new spending in Washington? Despite all the taxation and spending, the Marxists are not making us more secure from external threats. And their cheerleaders in the press are even prepping us for the next attack. For example, it is difficult to find the logic in Frank Rich’s New York Times article of May 30, 2009 defending Obama’s weak defense strategy. So according to Rich, this future attack of course will be Bush and Cheney’s fault. Cheney’s argument is that “half measures” leave us “half exposed”. Of course, to be true to the argument, the lack of border security, especially our southern border is probably less than a full measure. Rich, like many angry leftists, prefer to spend their time blaming the Bush Administration rather than the Islamo-fascists for the attacks and why we are at war in Iraq and Afghanistan.

The only concrete thing that our Federal Government is actually fundamentally required to do is to provide for “the common defense”. Although liberal commentators like Frank Rich are already blaming Cheney and Bush for the next time America is struck by a terrorist by second guessing everything that has been accomplished and attempting to make the case that our efforts should be put elsewhere. Here is a news flash for Mr. Rich, since 9-11 we have not been attacked. Whether or not you or anyone else agree with the way the wars in Iraq or Afghanistan have been conducted, it is clear that the proof is in the results. If there is one real major blunder that occurred prior to 9-11 it was the way the CIA was eviscerated by the press and the democrats when they had power under Clinton and Carter.

Then Rich proceeds to push the white country club theme of the Republican Party because some Republicans actually question if Colin Powell, the military general, supposed moderate, who voted for Obama rather than his friend the war hero John McCain is really a Republican or not. Let us see: Condeliza Rice, Clarence Thomas, and a few others were appointed by Bush. Here are the facts Mr. Rich: Over four years and 24 appointments, Bush named to his Cabinet five women, four African-Americans, three Hispanics and two Asian-Americans. Before Bush, no person of color had been named to any of the four most prestigious Cabinet jobs — at the departments of State, Treasury, Defense and Justice. He named two blacks as secretary of State and a Mexican-American as attorney general. Those facts do not prevent this fine reporter of the New York Times from misleading in the name of left wing propaganda.

Not much spent on common defense and the spending maybe ‘general” and there may be “welfare” – but this new administration’s out of control spending – more for the welfare of the corrupt few rather than for the general welfare. Government is getting bigger while small and large businesses are being taxed into oblivion. So Obama is going to cut defense from a 4 Trillion dollar budget. To put the $1 Billion slashed from SDI in perspective, that is .002 of the budget. If a rogue nation fires a missile and we are attacked, it will be on the present administration’s head – not Bush’s.

And the present administration’s tax policy reminds me a children’s story. It is about the Goose who laid golden eggs in the kingdom of US. Well this Goose was indeed special. The farmer, Mr. Obama, who owned the special goose, had twenty geese total. But only this special goose laid golden eggs. In fact, this goose not only laid golden eggs, but it laid more eggs than the next four geese combined! But one day the farmer got greedy and decided that he was feeding the Goose who laid the golden eggs to much. Mr Obama thought to himself “Maybe if I fed the other geese more and this special goose less, I would have other geese that would lay golden eggs.” Farmer Obama spread the feed around to the other geese. Of course, since this was a very, very special goose, his plan did not work. In fact, the special goose stopped laying golden eggs altogether and the rest of the geese merely got fat. To make matters worse, they too hardly laid any eggs at all. But the good news is that farmer Obama went out of business had to sell his farm to a very wise man Mr. Reagan. Mr. Reagan began feeding the special Goose again.

Of course, the moral of this story has nothing to do with our present political situation. As a postscript, Farmer Reagan got rid of all the pigs on the farm and spent more money on making the special Goose strong and the special goose rewarded him with more golden eggs than ever! That is how the fairy tale ends. But whether or not we have a fairy tale ending or a nightmare for the American middle class will in large part depend on whether or not a man on a white horse, the next Ronald Reagan can rescue us. It will actually take several men and women to restore this country to its founding principles of less Federal Government and more personal freedom. A very big part of this solution is whether or not we can return fairness to the tax code for the American middle class and slow down the profligate spending by our National government.



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