Originally posted 10/08/2013
As the ‘budget showdown’ – government slimdown – shutdown – whatever we call it, continues, I wanted to share some thoughts on this. The events we are witnessing and unjustly subjected to are distressing – and meant to cause a great deal of emotional and fiscal pain. The underlying issue is that equal taxation without equal representation has reached a point of do or die – its either about free market capitalism or socialism. If the current tax law and code were abolished and started anew, the federal government would be unable to continue with the shenanigans of old and the events of today. No more extortion of individuals, states, businesses and organizations. No more political favors for gain. The following are selected excerpts from ‘Beers with our Founding Fathers’ (www.BeersWithOurFoundingFathers).
Equal Taxation and Equal Representation - Income, Inheritance, Payroll, Fines and Tariffs, etc.
“A government has become corrupt when they impose any tax, or any semblance thereof, without the expressed consent of the People. From corruption is bred tyranny and oppression.” – Dean A. Beers
One of the specific founding grievances the colonies made against the crown in seeking redress was unfair taxation. In our Declaration of Independence, our Founding Fathers stated, one of many just causes for independence being “For imposing Taxes on us without our Consent.” Leading up to this, about one decade earlier and as noted in my book, was the Stamp Act of 1765. In England’s parliament on February 6th 1765 England’s parliament heard fifty-five anti-colonial resolutions of his Stamp Bill. A motion was offered to first read petitions of grievance from the Virginia colony and others, this was denied. The bill was easily passed and then enacted by the crown. With the exception of said petitions, the colonies had no other representation before parliament. Also, in England the represented citizens were taxed at a rate that created a serious threat of revolt. Sound familiar? Progressively, as ‘progressive’ currently refers to, the whole of our Congress has imposed and manipulated taxes to garner votes and political contributions. They are not doing so as representation, or in the best interests, of We the People.
Tax codes, laws, enforcement and judicial processes violate your natural right to Life, Liberty and the Pursuit of Happiness provided for in the Declaration of Independence. Also, the Fourth, Fifth, Seventh and Eighth Amendments of the Bill of Rights should apply, as well as due process under the Fourteenth Amendment. For all states and citizens, the Sixteenth Amendment provides that, “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.”
The list of taxes, tariffs, fees, duties and excises is astounding. It leaves one to wonder how any person has any disposable income left. Courts have ruled that only income, not compensation, can be taxed – only for the same court to also later rule that the Internal Revenue Service can ‘label’ something as income and then tax it (i.e. bartering) and as is done in the new healthcare law. If this code scares you, imagine the behemoth the code for national healthcare, enforced by the Internal Revenue Service, will become. Moreover, the federal personal income tax is unjustly and unconstitutionally progressive – the more income a person has, the more taxes they pay – which violates the “…shall be uniform throughout the United States” clause.
The Parasitic Cult chant is that the rich need to pay their ‘fair share’. The ‘fair share’ income tax should be inclusive of primary income and exclude secondary income, or double taxation. Primary income being the first time that income was earned by the individual, and secondary income being any derivative of the primary income. I would therefore eliminate all estate and inheritance taxes, investment income taxes, retirement taxes and so on. In addition, the ‘Alternative Minimum Tax’ is unjust and invalid confiscation of earned monies.
Why is the concept of ‘fair share’ imbalanced, impractical and impossible – and certainly nothing to do with ‘fair’ or ‘share’. A simple demonstrative analogy will put this in perspective. Friends like to go out for dinner, and when the check comes around there is the question, as soon as the check hits the table, of how to divide the check. There are only two ways to do it: 1) Divide the total by the people – everyone pays an equal amount; or 2) Figure out what each person owes. However, both need to consider: 1) Perhaps some were compelled to consider a budget or other concerns, and others were not; and 2) Perhaps some consumed alcohol or dessert, items that can add significantly to the cost of a meal. What would each person’s ‘fair share’ be? If the total bill is $100 for four people, that is $25 each. What if the meals were $20 each and one person had a $5 drink and as a couple they had a $15 dessert? It is not $25 each or even $50 per couple. If split evenly, none of the party pays their actual cost. The next time, each that paid less will repeat their actions of ordering higher, and those that paid more will recall the last experience. It will not ‘work out in the long run’ or ‘balance out’ – eventually one or two in the party will continually pay more than they should, and the others will pay less. A Parasitic Cult socialist will say this is how those that can afford to help out those that cannot. A free market capitalist will determine it is harmful. For those that would say that friendship should not get in the way, we are not analogizing friendship. This could be applied to office dinner gatherings or other social events, but not among friends, environments. The real definition of ‘fair share’ is simply paying what you owe for what you consume, or in the case of taxes – for what you earn. In this scenario, ‘fair share’ is to pay for your personal liabilities of consumption.
The tax system of our Country is so complex that fixing it is mostly political rhetoric, unless you throw the whole of the code out and start over. There are too many people unfairly not paying taxes – income or otherwise and others unjustly and unfairly taxed. It is unfair to disproportionately and progressively tax people based on the failures and successes they have had, accumulated and passed on. Income is taxed more than once, including via capital gains and inheritance taxes. It is time to toss the code and simplify the process equitably and across the board. First, the issue of states providing revenue to the federal government so that it can be used as a tool of extortion is out. This has historically been common when the federal government mandates, but cannot enforce, the states to adopt a holiday, speed limit, standard to determine driving under the influence, drinking age, etc. Under the Tenth Amendment, the states are sovereign and extortion is how the federal government stomps on that amendment.
First, revenue from the states to the federal government. None, zero – all taken care of. Now the federal government cannot meddle in the affairs of the states and the states cannot be extorted by the federal government. The federal government collects income taxes from persons and entities in all states, plus tariffs, duties and excise taxes – additional taxes paid by the states is unnecessary and the extortion is unconscionable. This would include federal taxes on any products sold within the states, no federal sales tax on any products or service. One of the most common is fuel tax, which makes the costs of fuel and all associated byproducts much higher. Eliminating the federal fuel tax would lower the cost of products and costs of living, increase revenues and discretionary monies for individuals and businesses, address state financial deficits, provide for the states to exercise their sovereignty, and will reduce the states’ financial dependency on the federal government. Many problems solved.
As to personal income taxes, that is a responsibility of all residents of our Country. The income tax must be proportionately equal across all incomes and persons. I have not done the math, so the numbers are for simplicity; however, from the data I have seen, they seem feasible – or at least worth serious consideration. I would propose an amendment that removes the authority of taxation and enforcement from one department and divide them. The taxing would be under the legislative, enforcement under the executive and adjudication under the judicial branches of our government.
Any adjustments to the tax rate must be approved in a manner similar to a Constitutional amendment – the state legislatures have an up or down vote and a super majority of two-thirds of the states affirming and sending to Congress as the Peoples’ consent and final vote. A super of two-thirds in both houses of Congress would also be required. Introduction of a tax adjustment must be introduced to the states by April 01st and concluded by September 30th. Any inaction or unconcluded action after that time the proposal is expired and void forever;
- All income is taxed at 10% on all derived income from business ventures and employment;
- No post-income activities are taxed, to include savings, retirement, investments and gains on personal and business holdings;
- Retirement, disability and public assistance are not taxed;
- Deductions would include all consumer and business loan interest, non-elective medical and personal care (eye, dental, etc.), education, charitable donations, medical accounts, retirement accounts, secondary education accounts, and income producing expenses and losses;
- No deductions for marital status, children or other personal lifestyle decisions;
- Exemptions for state and federally recognized non-profits business;
- Federal taxes of any form on all sales, goods, services and other in-state taxes all prohibited;
- Withholding is at 10% of the gross wage, salary or compensation paid;
The general concept is to reduce the onerous burden as taxpayers and filers, work to eliminate all non-payment of income taxes, eliminate the extortion practices of the federal government upon the states, and return taxation to the represented people beginning at the state level, and removing the unchecked taxation imposed by Congress and the Internal Revenue Service.
The issue of equal representation is synonymous with equal taxation. The issue of immigration – legal and illegal aliens – together with the rights and privileges, income and taxation and other issues of citizenship, residency and immigration are founded in this issue of taxation and representation, and expand from this concept. The reason these issues are founded in the issue of representation and taxation is because privileges of citizenship, including taxpayer funded public assistance or similarly subsidized programs are funded by represented taxpayers. Moreover, services for the general welfare of all residents – from public safety and emergency services, to public education and transportation, are funded by all taxpayers through various manners of income and sales taxes.
Dean A. Beers is a United States Citizen, born in Fort Collins, Colorado. The author is straight-forward, no non-sense and not politically correct. A business owner, capitalist pig, and firm believer in the foundation and intent of our Constitution, Freedoms and Sovereignty.
Dean A. Beers, author and speaker