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Cut Government By Half – End the Income Tax

March 24, 2011

If a carload of our founding fathers arrived here in a time machine, I believe they would be horrified at the unrestrained growth of government and the resulting loss of liberty.  When they created the federal government, through the establishment of the Constitution, they delegated 17 limited powers to Congress and the new government.  Powers such as collecting excise taxes and tariffs, providing for the common defense (not defending the world), establishing post offices, a navy, coin money, regulate interstate and international commerce, etc.  These powers can be found in Article 1 Section 8.  If you objectively study the purposes of many modern parts of government, you will find that most are not Constitutionally legitimate.  This means many of these programs are illegitimate and even illegal because they usurp the power of the states and the rights of the people.  Adding to that, many portions of the federal government are at their roots, Marxist.

This alone is enough of a reason to cut the government by half.  By half, what I really mean is at least half, and we could go 80-90% until we reach the muscle.  Let’s look at the big picture.  Big government socialists who dominate both political parties intend to control our assets and income.  They accomplish this by engineering an economic system.  A system where the government becomes the middleman and determines where our money will be spent through various programs that re-distribute money according to the will of a ruling elite.  Of course, the system is promoted to be in our best interest.  They want you to trust that they know how to spend your money better than you.  Free markets are touted, but in reality, social engineers meddle with market forces using high taxes, corporate welfare, tax breaks, financial manipulation and subsidies that distort supply, demand and prices of everything we buy and sell.  Total control is the objective of our runaway government, incrementally converting us citizens into loyal serfs to the collectivist system.  Discontented thus far, Washington has snatched our credit card and gone on a multi-trillion dollar spending spree, leaving you and I to pay the bill, and that mounting balance is $14 trillion!  Can you count on Congress to do the right thing and cut the government by half?  No, we have to make them do it!

Karl Marx Was Not a Founding Father sticker

Cutting the government by half would allow the total elimination of personal income tax, since the income tax covers about 45% of the federal budget.  Replacing it with the flat tax or “fair tax” would be unnecessary.  Remember, the income tax was not even legal until 1913.  You’ll find the income tax concept in the Communist Manifesto as one of the planks establishing communism.  Social Security and Medicare taxes are another form of income re-distribution and they make up another 35% of the budget.  These programs are essentially bankrupt and operate as giant Ponzi schemes.  Bernie Madoff even characterized them as such and he should know, having run the biggest scheme, next to the government.  If an insurance company ran its operation like Social Security and Medicare, that company would immediately be shut down for lack of assets, well,  probably bailed out now days.  These programs should either be closed or privatized and participation made voluntary.  No American should be forced by coercion to buy a retirement or health plan passed on as a tax.  It’s a deal you can’t refuse; and if you do, bad things can happen to you. 

If you had the freedom to invest the same money you and your employer handed over to the IRS in the form of  FICA payroll taxes, you very well might be rich.  Here’s an example: if you invested $300 per month into an account that gained 8% a year for 35 years, you would have a total of $620,340 in your retirement nest egg, provided you did not withdraw money during the saving period.  At retirement, you could pay yourself a much higher benefit than Social Security, and have money to spend for travel or any other purposes you desire.  Instead of leaving all those tax contributions with the government, at death, you would leave your remaining estate to your designated heirs.     

Eliminating the income tax would make Americans richer and put more money into the economy, fueling growth.  Ending corporate income taxes would result in lower prices for goods and services because these taxes are passed on to the consumer as higher prices.  Lower prices would make our goods more competitive here and abroad, encouraging businesses to produce their products stateside instead of in countries like China.  Companies would increase hiring and America ‘s industrial base would again lead the world.  Another reason we need to bring back basic industry is because not everyone is suited to wear a suit.  Many industrious people have the skill set to work with their hands, however, social engineers have exported millions of the very jobs these workers need.

Closing down unconstitutional agencies like the Dept. of Energy, Education, Homeland Security, EPA, FDA, ATF, IRS, DOT, Welfare, HUD and many other alphabet soup bureaucracies is an important step.  Ending these agencies will not only result in greater freedom, it will allow the private sector and the states to more efficiently oversee commerce.  The Constitution does not give the federal government authority to control every moving thing in the country, so Washington should cease and desist from attempting to do so.  Abolishing these bloated agencies will decrease operating costs of businesses,  further lowering prices of goods and services and boosting the economy.  Lower regulatory demands also greatly increases opportunities for less wealthy entrepreneurs, who otherwise, may never launch forth because of high compliance hurdles like the requirement to be a tax collector to one’s employees.

Comparison of family arrangements in the US

in 1970 and 2000

Welfare programs designed to help the poor have had the opposite effect, by creating more dependence on government and increasing poverty.  They reward bad behaviour and encourage dependency at the risk of losing benefits.  The Great Society programs have been anything but, and the proof is in the urban decay that so quickly overtook our cities since the 1960’s.  All of these Marxist programs, numbering at least 77, should be aggressively phased out, restoring authentic charity to those who willingly give to those who will appreciate the gift.  In addition, more money would be available for charities to help the indigent with a hand up instead of perpetual hand outs.  Families would begin again to rely on each other and stay united instead of depending on the nanny state to replace breadwinners.

Another sacred cow that can’t be overlooked is military spending.  The founding fathers never imagined the US military/defense departments would spend over a trillion dollars a year and be stationed at over 700 bases around the world.  They specifically wrote the words “common defense” into the Constitution to limit the operation of our military to defending the states from “invasion.”  Furthermore, America did not take heed to President Eisenhower’s warning of the rise of misplaced power from the military industrial complex and we continue to finance an ever-expanding military empire with debt.  We cannot continue to police the world any longer and our repeated violations of the Constitution regarding this issue is worsening the fiscal calamity we all face.  Congress must dramatically cut military spending, not necessarily defense expenditures.  Pulling our troops out of foreign lands may be just what the doctor ordered to help pay down national debt and return hundreds of billions of dollars back to its proper owners, the American people.

You may be thinking, that all sounds good, but how do we go about implementing it?  Well, we just do it!  Someone at Nike had it right when they came up with that short, yet powerful catch phrase.  I also recall hearing a motivating, yet simple “just do it” speech by Art Williams, the founder of A.L. Williams (financial services) back in the 1980’s.  He brought up all the reasons why we don’t accomplish our goals and when it comes to cutting the government, there are a myriad of excuses in the way.  In the end it all boils down to that energetic and inspiring phrase, “just do it.”

Here is a powerful and inspiring video about eliminating the income tax and cutting the federal government.  Take Your Money Back only lasts about ten minutes and is packed with useful information.  DVD copies may be purchased from the John Birch Society website.  Some of the figures are dated and may not accurately apply but the ideas are still good for today.       

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5 Comments leave one →
  1. Jack Lee permalink
    March 24, 2011 6:05 pm

    Very powerful and informative. If you want to get out to a much larger audience, it will need to be edited into 2-3 letters. I highly recommend trying to get it published it you have time.

  2. Geheimish permalink
    June 12, 2011 4:40 pm

    There is one mistake regarding the proceeds of the Federal Income Tax. This article implies that money goes to the Federal Government. According to the Peter Grace Commission in the 80’s ALL the proceeds from the income tax goes directly into the Federal Reserve Board to pay down the “national debt”.

    • June 13, 2011 11:35 am

      Please send a link. Here’s a simple calculation: $14 trillion debt with an average interest of 5% (actually lower) and you get $700 billion. Last year the total interest paid was $413.9 billion.

      http://treasurydirect.gov/govt/reports/ir/ir_expense.htm

      We took in $2.165 billion in 2010 taxes –

      and spent $3.456 billion –

      We take in much more than just the interest (artificially low), but far less than other federal expenditures, leaving a huge and growing deficit/debt.

      Thanks

  3. Carolyn permalink
    June 22, 2013 12:02 pm

    This is all well and good but I want to know how we can make a drastic change NOW, not in 10 years when I’m too dead to care and the country is still in same mess. What can we do now???

  4. June 22, 2013 12:08 pm

    De-fund DC. Think about how we can de-fund the beast. If it starves, it will get weaker, shrink and become less of a threat to us and the world.

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