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Income Taxes Are A Form Of Slavery

April 15, 2009 By: Phred Category: Uncategorized

I am not against all forms of taxation.  I am not an anarchist.  I understand that a government must exist to protect the rights of its citizens.  I understand that we need a military, a police force, and a well funded and objective court system.  It is not the taxation in and of itself that bothers me; it is the mode of taxation.  Even if you believe that the government should be in the business of building highways and providing social programs, a tax on income is immoral and is the wrong way for the government to collect funds.  A broad based consumption tax would be less intrusive than an income tax and would be able to provide the government with all necessary funds.  A tax on consumption is less intrusive than an income tax, does not discourage production, and does not reduce the laborers of this nation to involuntary servants–as does a tax on income.

For years, income taxes have been accepted by most people as a necessary evil.  Recently, however, a growing number of us have realized that while they are an evil, they are not necessary.

Many people do not realize that the income tax in this country is less than 100 years old.  Thats right.  The 16th Amendment was ratified in 1913, meaning that we had survived as a Nation for 137 years without an income tax.

A tax is an inducement to change behavior.  If you want to decrease smoking, you levy a tax on cigarettes.  If you want to discourage consumption of fatty foods, you levy a tax on those food items, as the city of New York is doing.  If you want to discourage speeding, you levy a tax on speeding (through a speed limit and fines).  If you want to discourage driving, you levy a tax on gasoline. If you want to discourage pollution, you levy a tax on carbon emissions, as President Obama has proposed.

And yet, the same people who openly admit that the above facts are true fail to admit that a tax on income can discourage wealth accumulation.  Taxes on income create disincentives to save, disincentives to invest, and disincentives to engage is risky entrepreneurial activities including starting new businesses or investing in new technologies or potential inventions.

But, besides economic issues, there are moral issues that need to be considered.

This blog is my property.  I use my mind to think about what to write and I write using my own hands.  I have advertisements on this blog that pay me money in exchange for referring my readers to their services.  Any money that I make from these advertisements is a direct result of me using my mind to write.  The government forces me to pay income tax on these advertisements, effectively taxing the products of my mind.  Even worse, the government uses the money that it expropriates from my mind to “serve the common good.”  They use it to fund social programs for others, without my consent or approval.

The same is of course true for any job.  Anyone who works is forced to pay income taxes.  The fact that everyone is forced to do pay them does not make it any less wrong.  Anyone who refuses to pay their income taxes risks being thrown in jail, hence the above usage of the word “force.”

On top of this, the government takes these taxes levied on the labor of men and uses them to fund social programs.  These programs provide money, health care, or other services to selected groups of people.

Think about this.  The government taxes your labor through force and gives it to others for their benefit.  In other words, you are being forced to work for benefit of others.  A person who serves others against their will is called a slave.  By using forced labor to fund social programs, the government has turned all workers into slaves.

The 13th Amendment bans both slavery and involuntary servitude.  Any tax which has the result of forcing one to work for the benefit of others is a blatant violation of the 13th Amendment.

In the Soviet Union, workers were forced to labor in order to build roads, highways, other public works, and provide for the welfare of their fellow citizens.  Here in the United States, the fruits of the labor of hard working Americans is expropriated in order to build roads, highways, other public works, and provide for the welfare of our fellow citizens.

The Soviets were threatened with being sent to Siberian prisons if they refused to obey.  Here in America, we are threatened with prison if we refuse to obey.  The end result is the same:  obey or lose your freedom.

No matter how much you feel that we “need” these social programs, you cannot deny the fact that the government is using forced labor (taxes taken by force and derived from the labor of men) to fund these programs.  As I said above, this is a blatant violation of the 13th Amendment.

Besides embodying a form of forced labor, our tax system is intrusive and does not respect the privacy of Americans.  The Supreme Court cited the right to privacy when it declared abortion to be legal.  Intrusive income taxes are a violation of privacy rights in the most basic form of the right.

The government expropriation of private citizens income for the purpose of protection is no more moral than the mafia doing the same to businesses in its sphere of control.  The only difference between the two scenarios is that the governments’ actions carry the force of law, while the mafia’s actions are outside the law.  However, the fact that there is a law behind an action does not make the action moral.  There were laws supporting discrimination against Jews in Nuremberg and against African-Americans in the American South, yet the force of law behind an action does not make it correct.  In the above example, both the government and the mafia collect the money through extortion.  They will both cause you harm if you refuse to pay, and they both justify their monetary expropriations on the grounds of protection.

And the sad thing about the above example is that if you were to pay both the government and the mafia for protection and you needed a favor, there could be little doubt that the mafia would be the one who would deliver the favor.

Americanly Yours,

Phred Barnet

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Why Income Tax Rates Should Be Lower

April 13, 2009 By: Phred Category: Uncategorized

[I wrote this article earlier and WordPress messed up and deleted most of it.  I had to rewrite the final 2/3 of this article.  I think I wrote it better the first time, but enjoy.]

I am not going to get into the philosophical reasons why I am opposed to income taxes in this piece article.  I am however going to explain why lower tax rates are better than higher tax rates.

Here is a chart that was sent to me by Mike at The Young Conservative Blog.  It shows the highest federal individual income tax rate.  It also shows the tax receipts received by the federal government as a percentage of GDP.

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[Check out Mike’s blog, theres a lot of interesting stuff there.  Also, here is a Wall Street Journal article about Hauser’s Law.

I think this is pretty remarkable.  While the highest individual income tax rates in this country dropped from 91% down to 28%, and then rose back up to the current 35%, tax receipts as a percentage of GDP has remained at a fairly stable level of 19.5%.  Cutting the rates from 91% to 70% in a few years didnt really affect the receipt rate, nor did increasing them from 28% to 40% in a few years.

Now, you might say that the reason that the tax receipts as a percentage of GDP remain pretty much the same is that when taxes on the rich are cut, the tax burden falls more heavily on the poor.  However, you may recall the chart that I posted regarding tax burden.  I was able to find an acrhived copy of the chart that the government removed from its website here.  I dont know how long it will stay up.

This chart clearly shows that the rich have paid an increasing portion of the total income taxes collected since 1979.

In 1979, the top income tax rate was 70%.  The government collected about 19.5% of GDP through income taxes, and the top 20% of wage earners paid 64.9% of all income taxes.  The top 40% of wage earners combined paid 85.1% of all income taxes.

In 2005, the last year for which data is available, the top tax rate was 35%.  The government still collected about 19.5% of GDP through income taxes, however, the top 20% of wage earners now paid 86.3% of all income taxes (a higher percentage than was paid by the top 40% of wage earners in 1979), and the top 40% of wage earners paid 99.4% of all income taxes collected.

I know this seems counterintuitive, but cutting taxes on the rich–and all Americans–actually increased the tax burden on the rich.  2005’s top tax rate (35%) was exactly half of what the top tax rate was in 1979 (70%).  Yet, the rich paid a much higher percentage of income taxes in 2005 under a lower tax rate than they did in 1979 under a higher rate.

As I mentioned in a previous post, I found this spreadsheet when I was trying to prove to someone that President Bush’s tax cuts favored the rich and hurt the poor.  I was wrong.  In 2000, the top 20% of earners paid 81.2%of all income taxes.  By 2005, this proportion had grown to 86.3% of all income taxes.  The tax burden of the top 40% increased from 94.7% in 2000 to 99.4% in 2005.  In fact, every quintile in the “bottom 80%” of wage earners paid a smaller proportion of the total income taxes in 2005 than they did in 2000.  Broad based tax cuts benefit all wage earners.

Cutting taxes allows Americans to keep more of their hard earned money.  This in turn leads to increased spending, savings, and investment.  These three factors lead directly to increased GDP growth.  Increased GDP growth means higher tax revenue for the government (which will always collect around 19.5% of GDP through income taxes).

I have already demonstrated that the government will collect roughly the same percentage of GDP–19.5%–through income taxes no matter what the top tax rate is.  This is true whether that rate is 92% or 28%.  I have also demonstrated that cutting taxes on the rich and all Americans has actually increased the tax burden on the rich.  Finally, I have explained that cutting taxes leads to higher GDP (which equals higher tax receipts).

I see no further arguments against cutting taxes on all Americans including the wealthy.

Rather than raising the tax rates on the wealthy back to what they were in 2000, the President and Congress should consider drastically cutting income taxes for all Americans.  This will lead to increased economic growth which will in turn lead to higher tax revenues for the government.  Most importantly, doing this would allow all Americans to keep more of their hard earned money.

Americanly Yours,

Phred Barnet

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Government Removed Data That I Linked To

April 10, 2009 By: Phred Category: Uncategorized

I am livid.

I started off writing about income tax rates.  It was turning out to be quite a good article (in my opinion).  I decided to cite that tax burden chart from the CBO that I referenced in my cigarette taxes article.  Go ahead and click the link there for the chart. Notice anything?

Its gone.

Then I went to the CBO’s website and the chart was nowhere to be found.  I searched for it by its name: “tax liability shares,” in quotes like they recommend.  The only thing that came up was a list of the tax brackets.  Not what I was looking for.

Then I went to the internet archive which stores records of all websites and there was no record of that page having ever existed.

Did anyone happen to download that file before the government removed it?  If so, could you please send it to me?

So much for open government and transparency.

Americanly Yours,

Phred Barnet

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Irony

April 09, 2009 By: Phred Category: Uncategorized

I find it ironic that the same people who criticized President Bush for every little thing that he did–whether it was right, wrong, or unimportant have now resorted to questioning the Patriotism of people like me for simply disagreeing with President Obama.

Americanly Yours,

Phred Barnet

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Our National Debt Is Higher Than The Entire World’s GDP!!!

April 08, 2009 By: Phred Category: Uncategorized

One of this site’s readers, Zach Williams sent me this news clip from February.  In this short clip, economist Stephen Moore explains that on top the national debt that is talked about, we actually have several other national debts.  These debts include future Social Security and Medicare obligations that are above what expected contributions will be, as well as insurance guarantees made by our government.  Im pretty sure that this does not include most of the $12,800,000,000,000 [$12.8 trillion] that I reported has been spent and/or promised for bailouts and “stimulus.”

The total listed in this clip is $78,800,000,000,000 [$78.8 trillion].  This is higher than the GDP for the entire world was in 2008.  This is quite scary to me.

I dont see how this wont lead to us printing massive amounts of money to cover this debt, seeing how there isnt enough money in the world to pay it off.  Of course, if we add another $12,800,000,000,000 [$12.8 trillion], than things are going to look even worse.

Americanly Yours,

Phred Barnet

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