Congress should abolish all taxes. As step-by-step measures, Congress
should:
-
make permanent and accelerate the phase-in of tax cuts
enacted in 2001, including rate reductions, estate tax repeal, and
pension liberalization;
-
repeal the individual and
corporate alternative minimum taxes;
-
reduce the taxation of capital
by lowering personal taxes on capital gains and dividends, which are
currently taxed at both the corporate and individual levels;
-
expand Roth individual
retirement accounts by greatly increasing contribution and income limits
and repealing withdrawal restrictions to create a large all-purpose
savings account available to every American;
-
index individual income tax
brackets to nominal income growth rather than inflation to prevent
hidden tax increases caused by ‘‘real bracket creep’’;
-
make permanent the 30 percent
expensing provision for capital investment enacted in 2002, and expand
it to ultimately allow 100 percent expensing;
-
ensure that all tax cuts are
consistent with replacing the income tax with a low-rate
consumption-based tax, such as a Hall-Rabushka flat tax, a
savings-exempt income tax, or a national retail sales tax; and generally
-
make all federal taxes lower,
flatter, and simpler.
- enact a five-year tax cut of at least $2 trillion; the tax cut bill
should
- repeal the Bush and Clinton tax increases of 1990 and 1993, thus
returning to two income tax rates, 15 and 28 per-cent;
- abolish the capital gains and estate taxes;
- create a $25,000 per household tax-free universal savings account;
and
- index the income tax brackets for real income growth so that tax
liabilities do not rise faster than Americans’ incomes;
- not allow states to unfairly tax the Internet;
- end the withholding tax;
- send an annual tax disclosure form to all taxpayers;
- require a two-thirds supermajority vote to raise taxes;
- enact an alternative maximum tax for individuals and businesses; the
MAXTAX should be set at 25 percent of gross income and replace the filer’s
income and payroll taxes;
- replace the income tax with a national sales tax and close down the
Internal Revenue Service; and
- refund taxes to Americans if tax revenue grows faster than personal
income.
The original federal income tax originally imposed a
tax of only 1 percent on incomes of $56,000 or more, with a maximum of
just 7 percent for incomes over $7 million (both dollar figures
adjusted for inflation to 2001).
Strange how new taxes, once in place, begin to bleed more and more
people with higher and higher rates that kick in at lower and lower
levels.
-- Harry
Browne
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Real tax reform begins with the recognition that taxation is extortion,
the seizing of income or property under threats of force
or violence. The American Revolution (1776) was
fought over tax rates of 3-5%. Americans today pay ten times more
than the amount our Founding Fathers took up arms to fight. Acceptance of
this state of affairs is un-American.
Thomas Paine, in his influential book Common Sense, noted that Samuel
warned Israel (1 Samuel 8) that the king they desired would take one-tenth
of their income. This was intended as a terrifying threat of monstrous
tyranny. Today it would be called "tax-relief."*
God commanded, "Thou
shalt not steal." Today's politicians say, " . . . except by
majority vote." Acceptance of this state of affairs is not only
un-American, it is immoral.
Social Security is a fraud. It is just
another tax, another source of general revenue.
All taxation violates fundamental
moral principles; all taxation is theft.
Next: Bureaucracies Galore
* This passage of Scripture was
also debated in the New York ratifying convention, Friday, June 20,
1788. (Jonathan Elliot, Debates on the Adoption of the Federal
Constitution, Vol. 2, p. 216.)
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