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Halloween: Share Some Scary Facts About… Government

in Communicating Liberty, Liberator Online Archives by Sharon Harris Comments are off

(From the One-Minute Liberty Tip section in Volume 19, No. 18 of the Liberator Online. Subscribe here!)

HalloweenThe scariest holiday of the year is fast approaching. Bloodsuckers, devils, demons and creeps will roam the streets, demanding we hand over our goodies — or face nasty consequences.

No, not the elections — Halloween!

Holidays can be a great time to share libertarian ideas with family and friends. We recommend libertarians gather liberty-themed facts, figures and stories specific for each holiday and share them if and when appropriate. (We try to share such info in the Liberator Online as major holidays near.)

Below is a fun and startling report from Americans for Tax Reform (ATR) that gives some genuinely shocking figures about how much government is adding to the cost of your family’s Halloween celebration this year.

Unfortunately, ATR first posted this in 2011, and they haven’t updated it as we go to press. It’s still very usable, though. Just point out the date by saying something like “as Americans for Tax Reform noted a few Halloweens back…”)

So, if the opportunity arises, scare your family and friends with some of this truly terrifying information. You can share it online, too, by linking here.

You’ll surely open some minds about the creepiest House of Horrors of them all— the federal government! Happy Halloween!

The Frightening Cost of Halloween — Thanks to Government
(from Americans for Tax Reform)

Think Halloween is scary? Ha! It’s nothing compared to the Frightfest of taxes and hidden costs government adds to this beloved holiday.

Each year, parents spend $1 billion on kid costumes for Halloween. On average, for the estimated 41 million trick-or-treaters, each kid wears a costume costing almost $25 — a hefty sum for parents who know this annual investment is only going to get a few hours of use.

Taxes make up a shocking amount of that cost.

Kids’ costumes are almost all made of heavily taxed synthetic fibers. On top of the state sales tax paid at the register, the government increases the cost of buying these costumes by imposing a 17 percent tariff on many of these imported costumes. Businesses not only have to absorb these costs, but also those imposed by income taxes, payroll taxes, corporate taxes, property taxes, capital gains taxes, unemployment insurance taxes, workmen’s compensation taxes, and other payments to federal, state, and local forms of government.

When all is said and done, government taxes compose a terrifying 47.82 percent of the cost of the average kid’s costume — $11.66 of the average price. Boo!

But the government’s tricks don’t end there. The Halloween season brings with it $2 billion in candy purchases. Due to excise taxation on sweets in addition to the burden of taxes placed on the confectionery industry, the government takes a 30.81 percent bite out of the average trick-or-treaters’ candy haul. Ouch!

Altogether, the cost of celebrating our scariest holiday is made all the more frightening by the costs imposed by government: hidden taxes and other costs constitute 40.91 percent of your Halloween celebration. 

This amounts to a burden of $688 million — or $16.80 per kid. The remaining $1.3 billion of candy not distributed during trick-or-treating represents another $406 million in taxes. Finally, after including taxes on adults for decorations and costumes the total Halloween tax bite comes to… a bloody and bruising $2.7 billion.

And the cost is even higher if you attend a spooky party with alcoholic beverages. Wine, distilled spirits and beer are all subject to more hidden taxes. Going out to dinner instead of trick-or-treating also carries higher government costs. And if you have to drive your kids to trick-or-treat, the government bite of gasoline also takes a hefty bite out of your wallet…

Wherever you turn, wherever you go, you can’t escape the bloodsucking horror of… the federal government.

Hey, if you’re still searching for a truly bone-chilling costume idea, here’s one: dress up as… Uncle Sam.

Worse and Worse: 101 Years of the Federal Income Tax

in Economic Liberty, Liberator Online Archives, Taxes by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 7 of the Liberator Online. Subscribe here!)

“The American income tax is perhaps the most dramatic example of how government grows at the expense of liberty,” said Grover Norquist, president of Americans for Tax Reform (ATR), last week. “Slowly. Constantly. Inexorably.”

Indeed, the 101-year history of the federal income tax has been marked by more and more taxpayers paying higher and higher amounts of tax, accompanied by ever-increasing complexity and confusion, as this chart from ATR shows:

101 Years of the Income Tax

And that’s just the start. Consider the incredible burden and costs of compliance. According to the National Taxpayers Union (NTU)

  • The total time burden of tax compliance totals an astounding 6.1 billion hours this year.
  • That is the equivalent of about 3.05 million employees working 40-hour weeks year-round with just two weeks off; or more than the number of workers at three of the biggest retailers in the Fortune 500 — Wal-Mart Stores, McDonald’s, and Target — combined.
  • When calculated at the average hourly employee compensation cost, the value of the labor involved in tax compliance is a jaw-dropping $192.6 billion.
  • Individuals spend a combined $31.7 billion a year on tax software and other out-of-pocket costs related to tax compliance.

NTU thus estimates the total compliance burden of the income tax is a horrific $224.3 billion. And that does NOT include “numerous hours taxpayers spend on state and local taxes, pursuing tax minimization strategies, or responding to IRS notices and audits; nor do they include the huge ‘growth penalty’ imposed on the nation’s economy by high tax rates.”

Then there are the numerous severe civil liberty problems with the income tax. “Ten Ways the Income Tax Harms Civil Liberties,” a short commentary by the Cato Institute’s Chris Edwards, summarizes some of them.

If you’re tired of this madness, why not start convincing your family, friends, neighbors and community leaders that it’s time to end the hated income tax — and replace it with… nothing.

Yes, it’s both fiscally and politically possible, as Ron Paul, Harry Browne, and many others have pointed out. In this article Advocates President Sharon Harris offers some some background info and suggestions to help you make that argument persuasively and effectively.