What are taxes?

Taxes......What do you think of this?

• Why do we pay federal taxes? Well, that’s a pretty easy question, isn’t it? We pay taxes to fund the functions of the federal government. But that’s not all. Some of this money is handed down to states and localities, usually in return for doing something the feds want done, but do not have the jurisdiction to do on their own. It is reverse extortion, and an abusive overreach of federal power over the people. It is an end run around the 10th amendment of the constitution, written with the purpose of limiting the power of the federal government over the people, by leaving domestic or internal government to the states and localities. Worse yet, the federal government has been corrupted by lobbyist and special interest money, given to support the campaigns of politician’s, but with the end goal of getting tax policy changes that favor those interests. Both issues above are just quick examples of what is wrong -w- federal government. Internal and external pressures to overreach, either with goals of merit or not, fly in the face of the original intent of our founders when they constructed the greatest country on earth. I think i’ve come up -w- a solution that, while probably causing secondary issues, at least moves those issues to a more local level. It is a 10 step process of removing the federal revenue collection from the federal government. 1) Federal government revenue To be provided by the individual states. They would collect taxes, which are first collected by their individual counties. (it’s a whole bottom up approach) 2) Revenue flow Counties get a small percentage for the collection, enforcement, and data processing. States split remaining funds -w- the feds 3) Equal contribution States decide how taxes are collected, but each state must provide equal amounts “per capita” to the feds. (not including unemployed, disabled, or poverty-stricken citizens) 4) Tax adjustments Federal government can pass a bill requiring a per capita increase from the states, but the bill would require 3/4 passage by the states, before becoming law. (like a constitutional amendment) 5) State tax States can impose any variety of taxes; business tax, sales tax, income tax (progressive or flat), property tax, payroll tax, etc. That is their business. The states, however, are not allowed to impose tariffs or tolls on each other, unless in return for government services. 6) Delegated powers The federal government uses it funds to deal -w- national security and international issues such as trade and treaties (All external affairs). The individual states are responsible for domestic concerns (All internal affairs). (10th amendment balance of power lives again!) 7) Constitutional amendment 17th amendment is repealed by a new constitutional amendment. This same amendment will forbid the federal government from any other sources of income, except from the sale of treasury bonds, and where tariffs are found necessary in international trade policy. 8) Constitutional amendment (2) 16th amendment is repealed, returning a state government voice to the federal legislature. 9) Debt States are still prevented from incurring any debt, and must pass balanced budget bills. Feds are allowed to incur debt, but no more than 15% of annual revenue without 3/4 state approval. 10) Tax cuts (economic stimulus) Federal government can pass a bill requiring a per capita decrease from the states. The bill would require the states to proportionally reduce taxes on their people. This can be done without requiring the bill receive 3/4 passage by the states, unless it violates the 15% of revenue debt limit. My hope is that the counties funding would prevent the need for property taxes. That states eliminate business taxes, or sharply reduce them, and replace them -w- a sales or consumption tax. That the states, if not fully funded through a sales tax, would simplify income tax calculation -w- a flat tax, without the games of deductions and exemptions. My goal is to make tax collection more local, and tax calculation more personal. To make all government more local. This concept could be taken further if you change it from states and federal, to counties and state, townships and county, or cities and township. Obviously there are different balances of powers to take into account, but in regards to tax collection and the provision of government services, why not bottom up funding.

• Answer:

  hello TAS. I agree with you that government is corrupt but there is a bit more to this than meets the eye. I like your state controlled tax collection however, you have to see the larger picture. If Im right you have about 50 states in the US ? So that would mean 50 separate tax collecting authorities instead of the current singular IRS? With so many (individual) tax states paying federal Gov mistakes would be likely to be high and less transparent because each state would do it differently or are you saying all the states abide by the same rules? If you have one IRS and you move states simple phone call/letter would suffice to amend records. The idea of a centralized gov is the belief its easier to control where the money goes would be easier to change tax policy at time of change of gov. Even with bottom up funding, corruption would eventually creep in thou perhaps only on a smaller scale. 1 clear advantage for Youre bottom up taxing would be the greater difficulty in mis- spending money as it would be used at a local - visible to voters?- level. Gov I believe deliberately design policy(s) from what ever form, to be complex as to pull sleight of hand to the taxpayer so that tax payers could not work out where the money went. Your Idea would probably shock politicians bc they would be more accountable + difficult to mishandle taxpayers money.