woodcdi said:
So, Mrs. Brown can indeed ride on our roads without guilt - especially if she or Mr. Brown ever bought gasoline.
In 2004, federal taxes on gasoline yielded
$24 billion in revenue. The federal government
spent $30 billion on highways in 2004. So those highways are not entirely funded by gasoline taxes.
If they paid their property taxers, they paid for their and their neighbor's kids education. If they bought anything at the corner store, they paid sales taxes and/or other embedded taxes that covered the cost of their local police, trash collection, and for the snow plows that keep the streets clear in winter.
Property and sales taxes are
local taxes and pay for local services. We aren't discussing local services. However, I bet that those local services spent a lot more than they received in local taxes and they made up the difference with federal funds.
Those taxes they paid also paid for the IRS agents and US Marshals - along with all their arms and other technology - camped out on their door step.
No; because those are federal agents and are paid from federal revenues - not state and local revenues.
Income taxes are nothing more than a device for social engineering, and redistribution of the worth of the diligent to defray the burden on society of the indolent.
48.8% of the federal government's revenue comes from individual income taxes. 13.5% comes from corporate income tax. 34% comes from payroll taxes. The remainder comes estate, excise and other sources of revenue.
People like to talk about smaller government; but if we all followed the example of the Browns' and did not pay income or payroll taxes, that would mean a spending cut of 82.8% (essentially all defense spending, all social security, and all medicaid would have to go before you could even hope to meet that goal...and you would still need to cut from the remaining programs)
As for a national sales tax, I think there are a lot of strong arguments for it in addition to the ones you made. A sales tax is a tax on consumption, not income, so it rewards saving and investment. It also creates a small tax across a broad base instead of the narrower base and higher tax we have currently. The downside is that taxes discourage whatever is taxed and a consumption tax discourages consumption - which can have a nasty effect on the economy if you aren't careful.
Lucky said:
The movie also said that the definition of income did not include payment for labour, more corporate profits and such.
Well, I can tell you that this argument will absolutely not fly with the IRS or any federal court in the nation. Sec. 61 of the legislation I mentioned earlier defines gross income as:
"All income from whatever source derived."
woodcdi said:
True. Getting paid for your labors is not a financial gain.
Not what the Internal Revenue Act of 1986 says:
Sec. 61 - Gross Income Defined:
(a) General definition
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
(1) Compensation for services, including fees, commissions, fringe benefits, and similar items;
Here is a great link from a Libertarian who opposes the income tax and does a nice legal dissection of the usual tax protest arguments (including some offered in this thread):
http://www.fff.org/freedom/fd0608b.asp