Real Solutions for the Economy -- Eliminate the Income Tax
Written by Art Thompson
Tuesday, 18 November 2008 14:34
Part 8 in a multipart series examining solutions for our ailing economy, presented by Art Thompson, CEO of The John Birch Society.

The personal income tax, if eliminated, would stimulate the economy to an unprecedented level.

Our Founding Fathers wrote the Constitution so that the Federal government could not impose a direct tax on the people. It was imposed for the first time during the Civil War and attempted again later on, but each time was declared unconstitutional.

Why did the Founders write the Constitution in this manner? They did not want the Federal government to have the ability to tax the individual directly for two reasons:

1.The most important was that over time a tax would give control over the individual to the taxing authority, in this case, the federal government. History has shown that direct taxing authority over the individual ultimately has led to the citizens’ enslavement by their own government, and;
2.The Founders did not want to reach down to the individual circumventing the states, thereby eroding the balance of power between the States and Federal government.
This all changed with the adoption of the 16th Amendment.

This change was part of a massive overhaul in the Constitution and our system of government that destroyed a good portion of the checks and balances between the states and federal government just before World War I.

Two other serious changes instituted were the establishment of the Federal Reserve and the direct election of U.S. Senators by the people to represent the states, rather than election by the legislatures. Originally, the Senate was to represent the states while the House of Representatives was to represent the people ― more checks and balances over the accumulation of power. The 17th Amendment to the Constitution, allowing direct election of Senators, undermined part of the system of checks and balances.

It may be unrealistic to think that all of these changes can be rolled back easily or quickly. Nevertheless, it might indeed be possible to take some concrete steps to elimnate the income tax. Currently, the federal government owns a large amount of property which under the constraints of the Constitution it should not own. If the federal government were forced to sell off all property and businesses not allowed by the Constitution, the resulting proceeds would eliminate enough of the Federal debt to offset the interest payments equivalent to personal income tax revenues. The income tax could thus be eliminated.

This proposal is nothing more than a plan that, in the 1960s, called for the passage of the so-called Liberty Amendment. In fact, at that time the effort had garnered enough support that several states passed resolutions to try and accomplish the plan.

It is difficult to say what is more important, although we are addressing economic solutions here: the basis for economic recovery or the reestablishment of personal liberty? Some may ask about other countries’ growing economies that are not free. There is much evidence that the wealth of the United States has been leaving the country through the Federal Reserve for many decades, plus foreign aid, etc., and this has supplied the growth in these other countries.

There is no doubt of the power of the IRS: If the IRS wants to, it can find something wrong on your returns and use it to stifle dissent. Allowed to continue along with other onerous aspects of a growing central government, the IRS can be a very vicious tool.

The personal income tax is only a small portion of what the Federal government takes from the people, but it can be very important as part of a stimulus package if it's eliminated.

If you factor in the accumulative cost of the income tax, it can add greatly to the cost of a service or product. Imagine the tax on miners, truckers, manufacturing employees, management, salesmen, and the clerks at the store where you purchase the end product, all adding up to your cost at the checkout counter. Eliminate the income tax and the cost of the product is reduced dramatically.

More money to spend with less cost on purchases ― not a bad concept, all while eliminating part of the Federal debt.

If we want to fix our economy, then we need to end the income tax.

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