Equality With Income Tax
This page changed with the April 04, 2024 edit.
The Billionaire and the Beggar pay the same percentage
As seen in the previous two pages; Congress relies heavily on the annual and decennial census' to determine the tax rates on income. Congress also relies heavily on newer definitions for what is income to include that which was not originally considered as income.
Also, as seen on the previous pages, those actions directly violate The Constitution.
Here, we focus on a win win solution that funds constitutional government activity, as well as makes life simpler and less costly for the governed people.
Thus the single flat percentage-rate-tax; but on what? The beggar's income is not easily recorded. The billionaire's income is easily hidden. The growing numbers of religions and other charitable tax-exempt organizations end up reducing the numbers who are required to pay taxes.
The government is supposed to work to equally protect and provide services to all persons, whether they own big or little businesses, religions, charities, or none of them. With this, we must find an easy, relatively painless way for all of them to pay their equal portion of the cost of government.
The Constitution of the United States of America, Amendment 14, Section 1, states...
"nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws".
Taxation Equality
At present, with the income tax system, as soon as you start to receive money, you need to start keeping all sort of records; sometimes for more than seven years. Just in case you may be audited.
The income tax is not evenly applied to all people based on the same type of income —therefore does not provide equal protection under the law.
Proposed alternate tax is a national sales tax. The benefit here, is that it is the same rate for the beggar and the billionaire. Both, the beggar and the billionaire, spend money; both do not always generate constitutionally taxable income.
A national sales tax also does not have to concern itself with whether or not rich people are hiding their money in foreign banks, or paying to themselves huge wages and bonuses; because they are spending, at least some of their money locally anyhow.
A fair, equal protection, tax requires three things:
A well informed population
Government officers willing to adhere to and not violate the terms of the contract, The Constitution of the United States of America, that they swear or affirm oath to support and defend against enemies foreign and domestic.
A well thought out taxation plan that applies equally to everyone.
Putting it all together.
When the billionaire, Warren Buffett, stated on national television, he pays less income tax than his secretary; the rich do not always pay a greater percentage of dollars on their income. This indicates that there are many loopholes that the richer portion of society use to reduce their actual tax burden; a burden, which then, is shouldered by the poorer citizens, such as the secretaries.
THE FAIR TAX
In The Constitution of the United States of America, Amendment 16; THE FAIR TAX tax-code replaces income with that of national sales tax. Then, quite literally, the entire tax code for the national sales tax can be written on a paper no larger than a standard business card, in the same size font used in this sentence.
The nation's government already tracks the national GDP (Gross Domestic Product). The government also tracks the total dollar volume of retails sales, nationally. In addition, in order to create a budget of any sort, government officers must present a request for funds they will need for the next fiscal year.
Total Budget for the next year (divided by) Total Retail sales in dollars for the current year (equals) the national Sales Tax rate.
By some estimates, the united states of America's gross annual retail sales for 2023 was approximately 7.25 trillion dollars.
Supposedly, in 2023, the nation's government spent a little more than 6 trillion dollars.
The 2023 interest on the nation's debt is said to be nearly 7 billion dollars.
If those numbers are accurate; this would nearly double the cost of every product sold in the united States of America.
Fortunately, this does not take into account The Constitution's, Article 6, Paragraph 1; about how to reduce the nation's debt to manageable levels. With the change from The Articles of Confederation to The Constitution of the United States of America; they abolished all unconstitutional debt (debt not authorized by The Articles), by not honoring it under The Constitution.
The citizens are not obligated to pay any debt that their representatives authorized in violation of The Constitution they swore to defend. That gets returned to those government officers, personally to settle.
Though people are likely to save more money and spend less: The Tax Rate is adjusted with the new budget and the previous year's results. People will continue to buy what they desire and need. If the people invest more, the gains from the investments should also increase what people spend, as it buys stuff to be taxed.
This form of income tax, though applied to end-user purchases of product, services, realestate, transportation of all sort, street-drug industry, prostitution, and other such business activity. This also includes ommercial purchases that are not directly included in or with the product or service sold. This does not rely upon a census or an enumeration. Rich people spend far more money than poorer people, thus each richer person pays a greater dollar value in taxes than each of the poorer people; —but, there are far more poorer people than richer. Now Warren Buffett can feel better that he will be paying an equal percentage but much greater dollar value of "income tax" as a sales tax, than his secretary.
The greatest social benefit with this Fair Tax system created with Amendment 16; it does not punish a person for trying to get ahead and join the ranks to the "better-off".
Too many times, the workers who put in extra hours on the job find themselves in a higher tax bracket and literally taking home LESS cash than they did without the overtime. That is unjust! It encourages people to get additional employment where the pay is in unreported cash.
The FAIR TAX system detailed on this page eliminates nearly all the individual accounting paperwork and redirects that to far fewer entities, such as the businesses and other organizations (church, charitable, tax-exempt, etc.) as all benefit from clean honest government, all should pay according to their use, by way of their spending.
People cannot be forced to donate some of their compensation to government; nor should government be allowed to force people to contribute more than the constitution requires.
This Fair Tax gives the wage-earner the largest income tax break since passing Amendment 16, which was unlawfully, unconstitutionally, and unethically enforced against wages. If we add the fact that the application of the income tax code is also unconstitutional; the tax breaks get even larger. Remember, Congress has no authority to define words used in The Constitution, which is the LAW that governs their powers. Unless a specific section of The Constitution grants to Congress power to define or redefine those words in that section. Doing so otherwise, is TREASON (The Constitution of the United States of America, Article 3, Section 3 levying (political) war against the people and our rights, which is the nation). Know... What is War.