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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.

Can We Abolish the Income Tax?

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

(From the President’s Corner section in Volume 19, No. 7 of the Liberator Online. Subscribe here!)

In this issue‘s Intellectual Ammunition section you will find some truly shocking facts about the federal income tax.

It’s enough to make you mad — and, I hope, ready to do something about it.

In recent years libertarian arguments in many areas have made remarkable Abolish the IRSprogress. The re-legalization of marijuana and other drugs has moved from a theoretical possibility to legislative reality. We’ve seen the elimination of centuries-old anti-gay laws. In foreign policy, the ideas of non-intervention are catching on so fast it’s scaring the political establishment. And the idea of libertarianism itself has gone from being an obscure, little-understood political philosophy to being the hottest idea in politics today.

None of this happened by accident. It came about because libertarians and others who favored liberty on these issues spent years challenging the status quo, opening minds, and bringing the libertarian position into public debate.

I think it’s high time we added abolishing the income tax to that list.

A few years ago I wrote a series of articles on how to argue for eliminating the income tax and replacing it with nothing.

I’ve combined those into one article, which you can read here. I hope it helps you in the crucial work of pushing the “abolish the income tax and replace it with… nothing” meme into mainstream American politics.

In my Liberty Minute column in this issue, I discuss the concept of the Overton Window, a very useful model for advancing the ideas of liberty. One of our major goals as liberty advocates is to raise the Overton Window to include ever-bolder libertarian ideas.

Can we do this with the idea of ending the income tax? Can we make that a part of the national political debate? You bet we can. It’s what Hollywood describes as “high concept”: it makes sense, it is exciting, and it is easy to grasp. Ron Paul’s longtime support for this issue is another big benefit. Paul’s millions of influential and active followers have the manpower to bring this idea alive for the mainstream.

Perhaps, not so long from now, the income tax will go the way of censorship, sodomy laws, Jim Crow, and other discredited and vanished tyrannies liberty lovers have sent into oblivion.