ABOLISH THE FEDERAL INCOME TAX
By Attorney Jonathan Emord
April 18, 2011
NewsWithViews.com
Outlays for President Obama’s federal stimulus programs (to make work) are slated to exceed $787 billion. The money goes to finance government jobs in education, housing, health care, law enforcement, the arts, Americorp, highway construction, public transit, environmental and water projects, and energy projects. Once the funds are expended the jobs will disappear unless next year another stimulus package is passed, adding to the national debt. In short, the make work jobs cannot compare with private sector employment because they neither create sustainable wealth nor provide for long-term employment. They are dead end investments. Economic recovery is largely unaffected by the stimulus programs. The best way for the economy to recover is for those who earn wealth to retain it rather than pay it to the government for redistribution to the politically favored. Retention of wealth will ensure that funds are spent in direct response to consumer demand for goods and investments, bringing about a true economic recovery, sustained economic growth, and a massive increase in employment. Feed government and you will grow an anemic economy. Allow the private sector to feed itself and you will grow an ever expanding economy capable of lifting the standard of living to new heights. Obama’s planned economy rests on deprivation of individual liberty, while tax reform that seeks to ensure that Americans retain wealth rests on maximization of individual liberty. If given freedom, taxpayers will succeed in transforming the American marketplace into one of wealth that benefits all Americans.
2010 tax revenues to the federal government will equal approximately $2.5 trillion, of which $1.08 trillion comes from the individual income tax. The federal government derives revenues from income taxes, payroll taxes (including social security taxes), corporate income taxes, excise taxes, estate and gift taxes, remittances from the Federal Reserve, customs duties, and miscellaneous fees and fines. While government receipts for 2010 are $2.5 trillion, the Obama Administration has caused it to spend $3.456 trillion in that year, adding approximately $1 trillion dollars to the nation’s $14 trillion national debt.
Median household income in the United States is about $50,000 for 2010.
The typical taxpayer will pay about $12,500 in income taxes in 2010. Imagine what would happen if the federal government discontinued collecting income taxes this April 15. Imagine if the typical American taxpayer retained, rather than paid to the government, $12,500 each year.
The Rest…HERE
How about cancelling the entire tax code, AND All entitlements (Social Security, Medicare, Medicaid, Pell Grants, Food Stamps and welfare, to name some but not all)? Insted try this, it fits on one page (a simplicity and transparency test), it treats every American equally, and it exempts from tax only those things, education, health care and savings, which contribute to the growth of our wealth. Yes, it also has a generous personla exemption which, whe combined with a negative income tax, provides the “safety net” that has become sacred. Here’s the plan:
TAX AND ENTITLEMENT REFORM
1. All persons residing in the U.S. shall come together in households for the purpose of reporting all income from any source, each item to be identified by payer’s and payee’s tax number, and for receipt of federal and state benefits. Members of a household need not be related, need not reside together, and a household may consist of as few as one person.
2. Each year congress shall set by legislation a “minimum wage” and a “tax rate”.
3. The following income shall not be subject to taxation:
• An amount equal to a year’s earnings at the minimum wage rate, for each adult (age 20-65) member of the household, decreasing 10% per year to 50% at age 15, and increasing 10% per year to 150% at age 70.
• All payments for what is classified as necessary health care for all members of the household including medical care, any pharmaceuticals prescribed by a recognized health care professional, vision and hearing aids, and membership fees for health-enhancing entities such as gyms or other exercise facilities. Health care insurance premiums may be deducted but not health care expense paid for by such insurance.
• All educational expenses including day care for young children or legally incompetent persons, that portion of state and local taxes identified as spent on education, that portion of parochial school tuition, fees and other expenses identified as going for non-sectarian education, tuition, fees and educational materials for private school education at any level, and a per-diem allowance for students traveling more than 50 miles from primary residence for education.
• All income saved into an identified account from which investments may be made. All withdrawals from this account for the benefit of any member of the household shall be reported as income to that member.
4. The “tax rate” shall be applied to any income over and above the deductions listed above, regardless of amount.
5. At the request, by legislation duly enacted by any municipality having greater than 100,000 inhabitants or any state, a surtax may be imposed on citizens of that municipality or state which shall be applied in a manner exactly as applied for the Federal tax.
6. For households whose deductions exceed total income, the Federal Government shall make payment equal to the tax rate multiplied by the shortfall in income, as shall municipalities and states.
7. There shall be no federal tax on corporations or other business entities.
8. The Office of Management and Budget shall compute revenues to be expected using the newly set tax rate and minimum wage, applied to the previous year’s reported incomes. No expenses in excess of that amount may be authorized or made by the federal government without approval by 75% of each house of Congress.
Your suggestions sincerely requested. E-mail them to tbeebe6535@yahoo.com.