As I get older, I realize how intrusive government is in our lives, especially income tax. What a load! If people say, "If you do away with income tax, there won't be any social security, disability, or unemployment insurance." That may be true, but my response is, "You won't need any of that because you'll have a lot more money in the bank."
Financial instruments, such as stocks, bonds, funds, and real estate, should be tax-free. Let the government raise taxes on booze, gambling, cigarettes, car racing, and sports.
5 comments:
A school teacher sent me this link to check on this video, America Freedom to Fascism Authorized version - Google Video, and I did. Just to cap it, it tells us how the government has flim-flammed us illegally into paying taxes and how taxes were never meant to be for the working shlimiel, only for people who hired other people for businesses. According to this video, the vote to taxation was never ratified and there are a number of citizens who continue to fight for their rights not to have their salaries taxed and some go to jail and some have good enough representation that they don't. A couple have won their court fights.
Really weird, the video is no longer available - I just went to google and checked.
Anyway look the movie up - you can probably rent it at Kim's Video.
Found the video Here it is, the video, America Freedom to Fascism, can now be seen on youtube in its entirety.
I don’t think that I agree with your statement. How much money do you have in your pocket? I swear, if I don’t have someone taking it from me (as in the bank taking a certain amount each pay period and stuffing it into my 401k and government savings plan), I’d spend it. Why do you think I make sure I get a tax refund every year? I could figure it out so I’d pay exactly what I’m supposed to, but getting a refund every year is like a little bonus – a savings plan, kind of. Of course when I get it, I spend it..... :-0
Don't you think that if you tax cigs any higher, or alcohol, people will just steal to get the money to buy those items, or steal the items outright?
Becky:
Because of the money I make between two jobs, the government takes about $300 between them. If I had an extra $300 in my pocket every two weeks, I know EXACTLY what I'd do with it--invest it or put it in the bank or in my IRA. Instead, it goes into a black hole and nobody ever tells me how it's being spent.
You make sure you get a tax refund every year, but that tax refund does not give you a good return on investment. What is the interest rate on that tax refund? The answer is zero. However, if I put my money in an IRA or a high interest bearing savings account, I will see a return on the dollar every year.
So I don't see how getting excited about a tax refund helps you. You say that if you had the extra money in your pocket, you'd spend it instead of investing, but who's to say you wouldn't take your tax refund and spend that? Who's to say the cigarette addict doesn't drool over his or her tax refund so he or she can take that refund and spend it on cigs? How do we know they don't? Likewise with alcoholics.
If alcoholics or smokers started stealing what they need for their addiction, they would be arrested for theft, like anybody else.
Irresponsible people will be irresponsible no matter what, whether you hand things to them on a silver platter or whether they have to work and then wait for them (as with a tax refund). But for the responsible people, I can't see how income tax makes any sense. That extra money taken out of my income could be spent or invested in other things.
If the government gave me tangible proof of what they're spending my money on, then I'd be convinced income tax were worth it. Right now I see no cost justification or ROI (return on investment). The refund is just giving me back money I ALREADY had because I OVERPAID. It isn't money the IRS is giving me.
An investment in an IRA or other interest bearing instrument gives me NEW money I never had before. The money is making money.
Sometimes, it's difficult to adjust your withholding to the right amount. Either you end up getting a refund or underpaying. I'd rather owe a little and know I put that extra money in my paycheck to good use, rather than get $1,000 back that the government borrowed from me with no interest. If I want to lend the government money (and get shitty returns) I'll buy Treasury bonds.
Increasing the tax on tobacco and alcohol will only make people more creative in their efforts to avoid the tax. The only effective solution is to reduce what government does back to what it did in Washington's time. America got along fine without Social Security, Medicare, and the Department of Education. Then a simple sales tax will work.
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