Guest Post by Ron Paul
A group of House Republicans is supporting legislation that would replace federal income, payroll, estate, and gift taxes with a 30 percent national sales tax. The bill also eliminates the Internal Revenue Service, giving states the responsibility to collect the sales tax and send the revenue to DC.
This deputizing of states to act as federal tax collectors violates the principles of federalism, especially since the plan forces states that have chosen not to make their residents pay sales taxes create a mechanism for collecting sales tax.
A 30 percent sales tax on all goods with no exceptions and no deductions will increase taxes imposed on millions of Americans. The sales tax legislation provides a way Americans can receive a monthly “prebate” payment to help offset the cost of the sales tax. Still, many taxpayers would be paying more under the new national sales tax system.
If the sales tax becomes law, Congress may never have to increase the rate above 30 percent. This is because it can rely on the Federal Reserve to increase the sales taxes via inflation. Consequently, this inflation tax will increase the pain inflicted by the sales tax on the American people.
The imposition of a national sales tax will lead to a flourishing black market for many goods. This will cause the government to increase surveillance of our purchases. It could also lead to government bureaucrats keeping lists of our purchases. This information could be abused by government officials to embarrass and punish political enemies. The surveillance could track whether an individual is complying with government dietary recommendations or is consuming “extremist” content. The need to ensure compliance with the tax laws may also be used to justify replacing cash with government issued and managed digital currency.
The proposed national sales tax rate is set at a high level because the bill’s sponsors did not want to reduce the federal government’s revenue. A big problem with tax reform occurs when it fails to include reductions in federal spending.
Unfortunately, even some libertarians get sucked into the DC game of ignoring the need to tie tax reform to reducing government spending. Instead, they focus on making the tax code more efficient. Even worse is if they make the supply-side argument that certain taxes should be cut to increase government revenue. Libertarians should view increasing government revenue as an unfortunate consequence of otherwise sound tax policy. They should advocate for tax cuts that are far beyond the point where tax cuts increase government revenue.
Some people support sales taxes because sales taxes discourage consumption and encourage savings and investment. While savings and investment are crucial to a free market, government policies should, to the greatest extent possible, be neutral between savings and consumption. Policies favoring savings distort the market just as do policies that encourage consumption.
Supporters of the free market who pursue various tax reform schemes without also working to cut spending are putting the cart before the horse. The American people will not be free from tax tyranny until government is returned to its constitutional limitations. This will not occur until enough people reject the welfare-warfare state and embrace the moral, as well as the practical, case for peace and liberty.
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Don’t do it people. Look at their track record of telling the truth and working in your favor.
Taxation has always been theft.
Oceania has always been at war with Eurasia.
War is Peace.
Freedom is Slavery.
Learn to stop worrying…
And love Big Brother…
If history is any help then we all know taxation will continue to grow until it all collapses. Best prepare today for this eventuality, start and learn to barter today. Get ahead of them, quit paying for your demise.
So eliminate taxes on the upper class and load them on the low and middle classes—dirty bastards.
I have a small business and I collect around $12,000 a month for the state of CA. I am uncompensated for my time and will be penalized 10% if I am one day late sending it in. FUCK all Government! I can’t wait until the $ takes a shit and every government fuck is bankrupted. A currency collapse will be the actual Great Reset and all stupid fucks will be destroyed. Take what you can get from this current failing system but don’t be destroyed by it’s inevitable collapse.
Every government fuck has had a 25% inflationary pay cut in the last two years already. They are going to be cut through inflation by another 25% over the next two years. I JUST LOVE INFLATION! Government “workers” will be taking it in the ass because they don’t see what’s coming.
Separate yourself from the inflationary cuts by front running price increases. THINK and PLAN!
Collect sales tax for North Carolina, not nearly the amount as you. but still under the threat of prison. These people do not even give me an envelope, much less the postage, to send it to them monthly.
What most will not get is, taxation is extortion and you are required to pay for the opportunity to be extorted. Its just a method of further demoralizing and humiliating your victim. nd all the Peoples said bbaaaahhhh!! when they should be saying FU
Fast way to bring the economy to a screeching halt and throw most into poverty.
That plan would effectively triple my taxes. Off to somewhere else for me.
Just out of curiosity — where?
Taxation is deflationary because it reduces the money supply.
At this point in time, since they can create it at will, that and control is the only reason for taxes.
“Taxation is deflationary”
The USAF taxed the china balloon.
It does no such thing.
It Redistributes.
@ awoke
You’re kidding, right? It MOVES the money supply. Taxes are not a black hole. Robbery doesn’t make things disappear. It put things in others’ pockets.
The government doesn’t burn the money. They hand it out to the free shit army so they can spend it.
What ever happens we can all be assured that the only people having more of their hard earned wealth confiscated will be independent average American citizens .
Those dependent upon government for their support will be untouched or compensated for any infringement or financial inconvenience. Regardless of the Government position held elected , appointed , hired or on public tax payer / debt funded assistance welfare snap independence cards will remain untouched !
However average independent American Citizens BOHICA
I’ve also witnessed, first hand, the fraud that can accompany the collection of sales taxes (and even payroll taxes) by retailers (and employers).
Some years back, a husband-wife couple in CA ran numerous gas stations on a major highway … collecting the State and federal sales and gasoline taxes on every purchase.
Then, one day, they left — and the tax auditors discovered that they had never remitted the taxes they collected — to the tune of more than $5,000,000 (yes, 5 million dollars).
Other reprobates were folks running the sweatshops in LA — where hundreds of 3d world women made all sorts of clothing, etc. The employers — themselves recent 3d world arrivals into the United States — discovered a neat trick: withhold income tax and social security and other payroll taxes from the workers’ checks — and run back home with it.
Many small businesses also deal (almost) exclusively in ca$h … and, of course, that makes it easy to skim the taxes off and not send them to the taxman.
This proposal does have one good thing: disbanding the IRS — but that hardly goes far enough. Far more importantly, we need to disband the Federal Reserve — immediately — and to have Federal troops there to take over on a moment’s notice — especially the NY Fed — to secure the gold in their vault(s).
We need to dissolve the entirety of the government of the United States of America.
In a large vat of acid.
S_T_O_P
P_A_Y_I_N_G
T_A_X_E_S !
They only use the money to Kill or Steal………………
Amen brother! 🙏 how do we start. Tax revolt?
Sounds like another hill to FIGHT and maybe die on !
I wonder how the.gov plans to squeeze this 30% out of the swarthy hordes pouring in across the southern border??
They are here to take, not give.
For the truth on that type of tax refer to canada. Another tax means just that, another tax.