CRAIGforCONGRESS

Missouri's 7th District, U.S. House of Representatives

 

 

 

Congressional Issues 2006
THE BURGEONING BUREAUCRACY
Fundamental Tax Reform



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

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.)