Fix The Tax Code Friday: Flat Tax

Thanks Madgirl. I think that’s what confuses a lot of people. The flat tax “feels” like it would be easier to manage, but not necessarily.

What do you tax? Earned income? Dividends? Interest? Forbes’ plan from years ago (which got a lot of attention) proposed a flat tax only on earned income. That meant that the middle class would be taxed on wages but those that relied on dividends, interest and other unearned/passive income would escape taxation. Is that fair? If you have to draw a distinction between what types of income are taxable and not, then you’re already adding a layer of complexity which exists now.

I’m not de-crying the flat tax (since we really don’t know what it is yet since there are so many variations on a theme) but I am saying that it’s not as easy as it looks.

The “flat tax” is a grand way to replace the current hodge-podge of loop-holes, exemptions, and tax-breaks. The american people deserve a simple, fair tax, be it income, a national sales tax, or a European GST. Congress should fix the tax code to be fair. Corporations do not pay their way in a country that protects “free market enterprise” The United States offers many freedoms that allow and promote commerce and trade. People become wealthy from these enterprises. The country protects a way of life for all. Corporations as well as consumers should all contribute. All benefit, all should pay accordingly.

Generally I prefer simple over complicated. However, Madgirl has an excellent point about how it would actually work. The devil’s in the details…I’d rather be with the devil I know.

Have you ever tried to read the tax code??? The tax Code is not complicated if “We” just found time to read it! As Americans, it is our “Duty” to read and understand the tax code. It really is simple and to the point.

Laws are concise, definite, and easy to read; if we just found time to read them. Between soccer and football, and NASCAR and such “We” have lost track of what is important; keeping “OUR” government under control.

If you go to your local Law Library and search the written tax code under “Liability for tax” you will find many taxes you “COULD” be liable for if you participated in certain activities. Like distilling or importing alcohol for instance, you would be “liable” for the tax on alcohol under Section 5005 of the Code…
26 USC 5005 Persons liable for tax.
(a) General.
The distiller or importer of distilled spirits shall be liable for the taxes imposed by section 5001(a)(1)

Or say you are a grower or importer of Tobacco products; you would be “Liable” for the tax on tobacco under section 5703 of the Code…
26 USC 5703 Liability for tax and method of payment.
(a) Liability for tax.
(1) Original liability.
The manufacturer or importer of tobacco products and cigarette papers and tubes shall be liable for the taxes imposed by section 5701.

Let’s say you were a bookie and you accepted bets from people for horse racing or something; you would be “Liable” for the tax on wagers under section 4401 of the Code…
26 USC 4401 Imposition of tax.
(c) Persons liable for tax
Each person who is engaging in the business of accepting wagers shall be liable for and pay the tax under this subchapter on all wagers placed with him.

Now let’s say you wanted to see if you were “Liable” for “Income Taxes”, again you would look in the index to the Code under “Liability for Tax” and you might be surprised to find NO section(s) of the Code that made you “Liable” for “Income Taxes” as do the sections I have mentioned above.

What????? There is NO liability for income taxes in the Code book????? That is correct; there is no section of the Internal Revenue Code that establishes liability for income taxes!!!!!

Congressman Dan Burton—
“You are correct in your assertion that the word “liability” or terminology “liability for income taxes” is not contained in any Section of the Internal Revenue Code”

Senator John E. Ensign–
“I cannot point to a specific place in the law where it says you must pay income taxes.”

How can that be you might ask????? How can there be no law(s) establishing liability for income taxes in the Code book when I have been told I have to pay my taxes like everyone else???

The answer is simple; you, “We” have been lied to since we were born!!!! Our parents have been lied to, we have been lied to, and our children are being lied to.

Who is doing this lying you might ask??? The Government is who is lying to us.

Henry Kissinger
“The illegal we do immediately. The unconstitutional takes a little longer.”

Sir Winston Churchill
“Most people, sometime in their lives, stumble across the truth. Most jump up, brush themselves off, and hurry on about their business as if nothing had happened.”

Henry Bellmon Senator (1969)
“In a recent conversation with an official at the Internal Revenue Service, I was amazed when he told me that ‘If the taxpayers of this country ever discover that the IRS operates on 90% bluff the entire system will collapse.”

Dwight E. Avis Head of ATF
IRS House Ways and Means Subcommittee Hearings 1953
“Let me point this out now. Your income tax is 100 percent voluntary and your liquor tax is 100 percent enforced tax. Now the situation is as different as day and night. Consequently, your same rules just will not apply… ”

T. Coleman Andrews
Commissioner of IRS
“Maybe we ought to see that every person who gets a tax return receives a copy of the Communist Manifesto with it so he can see what’s happening to him.”
U.S. News & World Report May 25, 1956

You see the law is simple to read “IF” we would just read it!!!! Unfortunately we do not have much time in our hectic lives for such meaningless things are educating ourselves when it comes to tax law. That is what we pay our CPA’s and accountants to do.

The problem is that if they told you the truth about income taxes it would put them out of a job, because you would not need their services anymore!!!

You would certainly stop paying a tax that the law does not require you to pay; wouldn’t you??? I know I have. I obey the law as written and that is where the problem lies! You have been told the tax code is confusing and difficult to read, and that it needs to be revamped or replaced with a “Fair Tax” or a “Flat Tax” or something!!! Yet all that really needs to be done is for ALL Americans to learn the truth about income taxes and just obey the law as written!!!

Stop paying what the law does not require you to pay!!! If “We” all stopped paying the income tax the government would not know the difference because not one dime of your income tax money goes to pay for the services you expect from the government any way; it ALL goes to pay the interest on the “Federal Debt”, not the “Public Debt” the “Federal Debt”…

Grace Commission
“100% of what is collected is absorbed solely by interest on the Federal Debt… all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from government.”
Report submitted to President Ronald Reagan in 1984

Our Government sold us out many years ago and has stolen our money ever since!!!! It is time “We” stood up and take back what is rightfully ours!!!! 1) Our MONEY, and 2) our Government!!!

President Ronald Reagan, May 1983, Williamsburg, VA
“Our federal tax system is, in short, utterly impossible, utterly unjust and completely counterproductive [it] reeks with injustice and is fundamentally un-American… it has earned a rebellion and it’s time we rebelled.”

Charles Lindbergh, Sr. U. S. Congressman
“This act establishes the most gigantic trust on earth. . . . When the president signs this act, the invisible government by the money power, proven to exist by the Money Trust Investigation, will be legalized. . . . The new law will create inflation whenever the trusts want inflation.”
(On the passage of the Federal Reserve Act, 1913)

Robert H. Hemphill, Credit Manager of the Federal Reserve Bank, Atlanta Georgia
“We are completely dependent on the commercial banks. Someone has to barrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied soon.”

Congressman Louis T. McFadden.
Congressman McFadden on the Federal Reserve Corporation Remarks in Congress, 1934; The Federal Reserve-A Corrupt Institution.
“Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough to pay the Nation’s debt. The depredations and iniquities of the
Fed has cost enough money to pay the National debt several times over….”

Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:
United States Congressional Record, March 17, 1993 Vol. 33, page H-1303
“Mr. Speaker, we are here now in chapter 11.. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner’s report that will lead to our demise. It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law
89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m
session June 5, 1933 - Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only…”

It is time that “We the People” educated ourselves about what exactly is going on in Washington DC and fix the problem!!!!