My passion for politics was reignited in 1992 when I first heard about "CATS". No, not the fuzzy little creatures who occupy so many homes and for the most part are the most aloof animals in existence. CATS or Citizens for the Alternative Tax System, was the acronym for a nation wide tax reform movement that called for the repeal of the 16th amendment. The 16th amendment which was part of the progressive movement like the 17th (direct election of Senators) and the 18th (prohibition) was ratified February 1913 allowing direct taxation of the individual by the federal government.
Think about it... Up until 1913 the income tax was unconstitutional. It's hard to imagine a time where the federal government couldn't tax the individual. One could say that the inability to tax the individual was one of the founding principles that the drafters specifically prohibited it in our Constitution.
The federal sales tax is so simple to understand. It calls for the elimination of the income tax. Federal revenue is raised by piggy backing a federal sales tax on the existing state sales tax. To ensure it's wasn't regressive (meaning detrimental to lower income earners) anyone could apply for a rebate to compensate them on incomes below the poverty line.
The federal government acknowledges the sales tax is the simplest tax to collect as documented by the existence of more than one government white paper on how to collect taxes post massive natural disaster or limited nuclear war. The reasoning is simple... A national sales tax doesn't require a massive bureaucracy of 100,000 people spending $11,000,000,000 dollars to process 238,000,000 tax returns that took 3,800,000,000 hours to prepare.
The IRS's 2000 different forms are overly complicated. In 2015 the federal internal revenue code (2,412,000 words long) and federal tax regulations (7,655,000 words long) was the equivalent of roughly 160 full length, exceedingly boring, novels. Furthermore, this total doesn't include the massive body of tax-related case law that is often vital to understanding how the code and regulations are actually applied.
When I first got excited about replacing the income tax with a sales tax I was worried that the $3,700,000,000,000 national debt at roughly than half of GDP was out of control. With the national debt closing in on $20 trillion it's fundamentally clear this growth is unsustainable and there will come a time, soon rather than later, in which the entire system will collapse upon itself.
What keeps fueling this entire process?
For starters I think both parties are to blame but it's clear to me that the Democrats continue to use the power of the ballot to "make" the rich pay their "fair share" and there will come a tipping point where the rich just say screw it.
Voting to take more and more money from one group (mostly self starters and successful entrepreneurs) to give stuff to others has always been questionable because there will come a time where the "fair share" will be deemed unfair and those paying it will stop and may even leave. For the most part the "rich" employ lawyers, accountants and tax experts who sole purpose is to understand the law better than the IRSs and figured out how not to pay taxes. The enforcement of these rules upon the rest of us not so rich schmucks is via the Dark Side of Politics.
Voting to take more and more money from one group (mostly self starters and successful entrepreneurs) to give stuff to others has always been questionable because there will come a time where the "fair share" will be deemed unfair and those paying it will stop and may even leave. For the most part the "rich" employ lawyers, accountants and tax experts who sole purpose is to understand the law better than the IRSs and figured out how not to pay taxes. The enforcement of these rules upon the rest of us not so rich schmucks is via the Dark Side of Politics.
