The Fundamental Unfairness of Tax Fairness

Barack ObamaFresh off his January State of the Union speech, the man who now occupies the White House sent Congress a $4 trillion budget containing $2 trillion in new taxes and total spending increases of more than 6% over last year. And as usual, Mr. Obama continues to promote his budget with the same old argument about the rich paying their fair share. It is an argument we have been hearing for generations.

The problem with 'tax fairness', as defined by the liberal, is that it is fundamentally unfair. To understand why, one must first understand that the U.S. income tax system is designed to be progressive in nature. What does that mean? It means that those who earn more money are required to pay a greater share of their earnings in income tax.

For example, a family living below the poverty rate pays absolutely no income taxes, many actually get refunds despite having not put anything into the system. Those earning incomes in excess of $390,000 pay more than 44% of their income as income tax. Those with lower incomes may pay 30%, 20%, etc.

The claim that the wealthy and America's corporations don't pay their fair share of taxes absolutely absurd. According to the Heritage Foundation, 68% of all income taxes collected by the federal government are paid by the top 10% of the nation's earners. And for the record, those earners are responsible for 45% of all the money earned in this country. If they are earning 45% of the total but paying 68% of the income taxes, how is that fair?

Don't Touch Mine

Politicians of all stripes have successfully manipulated the American populace since World War I in order to create an environment of class envy that makes progressive income tax possible. They have spent the last 80+ years demonizing the wealthy and Big Business in order to create bitterness in the hearts and minds of the middle-class and poor. And they've done this for one reason: to manipulate you into agreeing with their philosophy of taxing the rich in order to benefit the middle class. The problem is, it doesn't work.

After generations of uncontrolled tax-and-spend policies, we are no better off for it. And in fact, we are worse off. Today's federal deficit is sky high and that's just for starters. Real unemployment is near 12%, wages are stagnant, business growth is nearly nonexistent, and the poor are as poor as they have ever been.

Making matters worse is a mindset among far too many Americans that it is morally justifiable to take money from one person and give it to someone else. As the reasoning goes, a person earning $500,000 a year doesn't 'need' that much money, so it should be taken away from him and given to someone else trying to raise a family of five on $40,000. But need is relative.

Consider the fact that there are immigrants coming to this country who have spent their whole lives living on table scraps and whatever they could find from the local junkyard. Likewise, there are poor people in this country getting by on less than $10,000 a year. If you are a middle-class American earning $30,000, that's three times as much. In their eyes, you don't need your cell phone plan, your flat screen TV, or your leased vehicle. Perhaps we should confiscate your possessions and give them to someone who is less fortunate. Or, better yet, perhaps we should confiscate 44% of your income and give it to poor immigrants.

You Earned It

I don't really believe in confiscatory tax rates or a progressive tax system. I only suggested confiscating your income to make a point. The fact of the matter is that you earned your money and you should be entitled to keep it. But the same applies to the wealthy and corporate America.

The whole tax-and-spend problem that now exists in America has nothing to do with the wealthy not paying their fair share. How do I know? I know because the federal government broke a record this past October when it reached more than $3 trillion in revenues. It's not that Washington is collecting too little; it is that they continue to spend too much.

Make no mistake about it; the progressive tax system now in place has nothing to do with helping the poor and middle class. The power to tax is the power to control and that's what this is all about. The government controls the wealthy by taxing them; it controls the poor and middle class by manipulating them with the freebies and benefits made possible by confiscatory taxes. Such is the fundamental unfairness of tax fairness.

Comments

Added by Keith Smith on February 07, 2015 Bring back trade tariffs for the first 50 plus years of this country they paid uncle Sam's way now not only do corporations ship jobs over seas to cut cost but their not even getting taxed for selling in the largest richest market in the world.
Added by Keith Martin on February 07, 2015 Www.fairtax.org
Added by Scott Muggli on February 07, 2015 These guys crack me up. Claiming that the top 10% are unfairly paying 65% of all the taxes... Boo hoo, it's not fair! Well, actually it is unfair. Because the top 10% control 88% of the country's wealth but are only paying 65% of the taxes.
Added by Keith Smith on February 07, 2015 You we're screwed bye your president. Ronald Reagan raised taxes on working families 5 times he cur top rates and raised working rates from 11% to 19% but your all to pissed to actually do the research and figure out where it started going wrong most corporations today pay no federal taxes. This county has lots of bills why are you OK with letting multiple billion plus companies skating out and leaving you with the check ?
Added by Michael Stovall on February 08, 2015 Remember you are being taxed for living on American soil. Our liberties, freedom and protection are the reason we pay taxes. As a citizens of a Country we kind of owe the state, 'cause we don't protect ourselves. And it was a pretty ingenious idea and instrumental in forming this Country and economy. How else do you think the Government would be able to build roads, build schools, pay teachers, lend money to start businesses, etc. I just think a fair tax system in place would be good.
Added by Alfred Martin on February 07, 2015 The United States Constitution forbids direct federal taxes, and is the only item in the Constitution that is stated twice: Article 1, Section 2: "...direct Taxes shall be apportioned among the several States..." Article 1, Section 9: "...No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census..." Direct taxes are taxes on a person, a person's property, or the exercise of a fundamental right. Any tax on a person's labor, or on the earnings from their labor, is a direct tax and must be apportioned. "Apportioned" and "in Proportion to the Census" mean that the tax is billed to the state governments according to each state's percentage of the national population. The states collect the tax according to state law, and remit it to the federal government. The Federal Government is prohibited from involving itself directly in the lives and finances of private citizens. The only plenary tax authority granted to the fed-state is to impose taxes on the several states. As defined in the Congressional debates of February 9, 1939, on page 1301, Congressman McLean specifies as follows: "Emphasis will be laid upon the fact that this is only to tax employees of the State and the Federal government." Limiting collection of tax on wages, as is described by Congressional intent, no private citizen owes a tax on wages either by the Sixteenth Amendment or the Public Salary Tax Act. The federal government can only act on the States; and only in the strictly limited, exclusive jurisdiction of Article 1:8:17. There are no federal income taxes imposed upon an American working and living within the 50 states party to the more perfect Union, see 26 CFR Sec. 301.6361-4. "[T]he Sixteenth Amendment did not authorize any new type of tax, nor did it repeal or revoke the tax clauses of Article I of the Constitution, quoted above. [Capitations and other direct] taxes were, notwithstanding the advent of the Sixteenth Amendment, still subject to the rule of apportionment?;"
Added by Sherry Parton on February 07, 2015 We are screwed..by our own President
Added by Keith Smith on February 07, 2015 How about a dollar tax on every stock market transaction but that would pay most of uncle Sam's way.
Added by Jason Worden on February 06, 2015 One problem is that 1% of the people already have about 90% of the money that America has available and they will not spend it. They sometimes make a good show by donating to a cause or making a commercial but they don't really help anyone but themselves for the most part, and usually on the backs of those less fortunate.
Added by Sandra Engle-goodman on February 08, 2015 Make no mistake about it. Have you noticed how everything he says begins this way?
Added by Alfred Martin on February 07, 2015 NO IRS INTERNAL REVENUE OFFICER has ANY Delegation Order allowing them to seize property in payment of income taxes which, pursuant to 28 USC 3001 FEDERAL DEBT COLLECTION PROCEDURES ACT, can only be done by US marshals, armed with court orders and writs of attachments and writs of garnishment. Attachments and Garnishments and Lien's/Levies; what do they have in common with each other? All require due process which means that in order to proceed with any Levy or garnishment, there must be authorization by a court. In other words, an agency or company simply can not issue their own garnishment orders. One need to remember, Congress never gave agencies Police powers or enforcement powers. The only thing an agency can do is make a determination that you failed to perform to some kind of obligation and send you notices of your default and request performance to do something and if you do not comply then they must go to a court for judgment for action against you. The United States failed to substantiate it's assertion of Jurisdiction persuant to 26 USC 7401 and the IRS is therefore without Jurisdiction.
Added by Richard Macdonald on February 07, 2015 With just ten percent of the country's families controlling 80 or 90 percent of the wealth, the rich are not subjected to confiscatory taxes by any stretch! When I was coming up the tax rate on those folks was up to 92% and they weren't starving. That is the time republicans seem to think America was a better place, but they want to go back without the responsibility of paying for anything or structuring the decent jobs and wages that made it possible for dad to work and mom to raise the kids.
Added by Daniel Herber on February 08, 2015 The rich will invest their money, in America, when America quits penalizing them for doing so. Reaganomics.
Added by Dennis Spain on February 06, 2015 The problem will not be rectified by tweaking the tax rate structure. Only a repeal of the Federal Reserve Act of 1913 and the Federal Income Tax and a return to a strict interpretation of Article 1, Section 8 of the United States Constitution will resolve the issue and return us to true prosperity and cultural healing.
Added by Chad Northcutt on February 07, 2015 It's funny how everyone is complaining about how much tax is collected, and never asking the question should it even be collected in the first place. And to add to that, how about we spend a lot less. Then it wouldn't really matter.
Added by Joseph Pendarvis on February 06, 2015 Yea, I dont owe, but lost average of $300 this year, next year with not taking ACA, I Will get tax fine.
Added by John Wilke on February 06, 2015 Getting their hands in your pockets wasn't enough now they want their Elbows in there.
Added by Gregg Duarte on February 06, 2015 Fair tax. Everyone pays a fair share. Period. But know thats not fair
Added by Mike Weaver on February 06, 2015 Fair tax is the only way and our Senators from Ga. are finally onboard and pushing Fair tax system!!!
Added by Mike Hawkins on February 06, 2015 In America we are all supposedly equal. However the progressive tax system treats us differently and is un-American by definition. We need to abolish the IRS and go to a Flat Tax
Added by Rick LapLante on February 06, 2015 When O talks about taxing the wealthy, there are only a fraction enough really wealthy for all the debt he has lined up. What he really means is turning the middle-class into poor people.
Added by Randy Dean Johnson on February 06, 2015 I must be wealthy at 60k a year. I never get a tax return. Always pay in. Lol
Added by Jason Worden on February 06, 2015 I like how they try to add the middle class in with the rich in this nonsense. Even their examples are f#*ked. Their is no comparison between $500k and $30k, and on average only the top 1% of this country makes over $300k. The problem is not with people making money. The problem is that when they do finally make it and are wealthy they hoard all their cash, even send it over seas and effectively remove that money from our end economy. If the one percent would spend their money in America, paying American labor and buying American goods their would be no need to tax them at a higher rate. To put it in perspective, $10k a year is less than $200/wk. Who can live on that? While $500k is almost $10,000/wk. What can you even do with that much money? In today's market that would buy a new car and house every month. Anyone who says it's their money and they deserve to keep it all is delusional. Especially when the poor "rich" people in question are mostly corporations that post record profits by paying $10k/yr.
Added by Steven Miller on February 06, 2015 What world are these guys living in? The wealthy are being taxed less now then they have been since....forever! And they currently own Congress. So this statement is full of shi....crap.
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