Site icon The Punching Bag Post

We Should (but will not) Abolish the IRS

&NewLine;<p class&equals;"wp-block-paragraph">We all know that the Internal Revenue Service is the collection and enforcement agency to collect the National Income Tax&period;&nbsp&semi; Many folks may not know that the IRS is not the creature of our Founders&period;&nbsp&semi; In fact&comma; the IRS did not exist for the first 73 years of the American Republic&period;&nbsp&semi;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">It was created in 1862 to collect a temporary tax to finance the Civil War – on the northern side&period;&nbsp&semi; It was a fixed 3&percnt; on those earning more than &dollar;800 per year – essentially eliminating most Americans from the tax&period; It was allowed to expire in 1872&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">Different Supreme Courts ruled differently on the constitutionality of a direct income tax&period;&nbsp&semi; That was settled in 1913&comma; with the enactment of the 16<sup>th<&sol;sup> Amendment&period; &nbsp&semi; It was initially a modest collection and accounting function &&num;8212&semi; and a large percentage of Americans being below the minimum income requirement&period;&nbsp&semi; From 1939 to 1945&comma; however&comma; the number of citizens required to pay the income tax rose from four million to 42 million – more than a ten-time increase in less than ten years&period;&nbsp&semi; Today there are more than 148 million taxpayers – and a lot more who should be&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">Rather than a taxing policy to meet needs&comma; the ability to increase taxes has provided an enormous pool of financial resources to meet increasing political desires&period;&nbsp&semi; The clever idea of &OpenCurlyDoubleQuote;withholding” the tax from the paychecks was the means of not only guaranteeing payment&comma; but a way to aestheticize workers from the pain of digging into their own pockets to pay the tax&period;&nbsp&semi; Many experts have argued that without withholding&comma; the public would never have tolerated the same level of tax increases we see today&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">To coerce payment&comma; the IRS was granted powerful enforcement policies&period;&nbsp&semi; It could collect both interest and penalties on taxes not properly paid – in their opinion&period;&nbsp&semi; It can seize bank accounts and property without due process – no requirement to sue in court where the taxpayer could mount a defense&period;&nbsp&semi; Through the Department of the Treasury&comma; the IRS has a police force that can raid and arrest – even licensed to kill&period; And Biden’s so-called Inflation Reduction Act provides an additional &dollar;78 billion for additional personnel for the IRS over the next eight years – almost doubling the current Agency budget&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">No agency of government is more disliked and feared by law-abiding citizens than is the IRS&period;&nbsp&semi; Do we really need the income tax to fund the government&quest;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">If we had another means – such as a National Income Tax –the IRS would not exist&period;&nbsp&semi; We would never have to make out and file those needlessly complicated forms&period;&nbsp&semi; We would never have to fear an audit – or have money and property seized&period;&nbsp&semi; We would not have to fret over all those loopholes the rich and powerful use to reduce their tax burden&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">There would be a saving to the taxpayers&period;&nbsp&semi; Collecting a National Sales Tax would result in a drastic cost saving to today’s &dollar;15 billion IRS budget &lpar;not including the Biden money&rpar;&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">The way to do it is with a National Sales Tax &lpar;NST&rpar;&period;&nbsp&semi; Now we all know that sales taxes are regressive – tending to impact hardest on the lower income groups&period;&nbsp&semi; That can be resolved by making the NST moderately progressive&period;&nbsp&semi; That means no sales tax on basic foods&comma; medicines and other essentials&period;&nbsp&semi; High-end items would have a higher tax rate &&num;8212&semi; luxury cars&comma; expensive jewelry&comma; designer clothes&comma; fine wines&comma; caviar&comma; etc&period;&comma; etc&period;&comma; etc&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">Middle class citizens could adjust their income by managing their purchases&period;&nbsp&semi; The wealthy would bear not only their share of the tax burden&comma; but a little more&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">The government would not have to deal with millions of people in managing the collection&period;&nbsp&semi; That would be handled by the businesses selling taxable goods and services&period;&nbsp&semi; They would be collecting the tax at the time of purchase and sending on to the government&period;&nbsp&semi; That is not even a totally extra burden on the business community since they already perform that service when they collect both state and local sales taxes&period;&nbsp&semi; In fact&comma; the business burden would be lessened by not having to withhold income taxes from employees&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">In terms of downsides on the citizens&comma; there is only one&period;&nbsp&semi; It would require a significant increase in the price tag&period;&nbsp&semi; Folks would have to really analyze that against their saving they receive with the elimination of the Income Tax&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">Some argue that a National Sales Tax would open up another money pit for political avarice&period;&nbsp&semi; That is why an NST should ONLY be enacted IF &lpar;🡨 big IF&rpar; … If the Income tax is eliminated by a constitutional amendment nullifying the 16<sup>th<&sol;sup> Amendment that created it&period;&nbsp&semi; Otherwise&comma; the critics are correct&period;&nbsp&semi; The government would have another major means of fleecing we the people&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">Now that I have your hopes up&comma; I have to explain why it will never happen&period;&nbsp&semi; Most of the IRS’s thousands of employees would need other jobs – and they would not be going quietly&period;&nbsp&semi; Then there are those hundreds of thousands of independent tax accountants&comma; financial advisors&comma; tax preparers and tax attorneys – not to mention the tens of thousands of corporate employees in the tax departments &&num;8212&semi; working with the accounting firms to search out the loopholes&period;&nbsp&semi; And let us not forget all the lobbyists who focus on taxes – the men and women who propose the legislation creating exemptions and loopholes&period;&nbsp&semi; Did I mention the money they donate&quest;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">The Income Tax may impose a horrendous burden on the American worker&comma; but the industry is too big … too powerful … to be shut down – no matter how good the alternative may be&period;&nbsp&semi; Try to find a member of Congress who would even introduce such legislation&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">So&comma; there &OpenCurlyQuote;tis&period;<&sol;p>&NewLine;

Exit mobile version