Time to repeal the income tax

Posted 1/17/11

No amount of money or security is sufficient to sacrifice one’s god given freedom. Could that be what Patrick Henry understood when he declared: “Give me liberty or give me death”?

These days, here is what we can insightfully …

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Time to repeal the income tax

Posted

No amount of money or security is sufficient to sacrifice one’s god given freedom. Could that be what Patrick Henry understood when he declared: “Give me liberty or give me death”?

These days, here is what we can insightfully conclude:

The persistent reduction of retained earnings and the compression of individual free choice options – installed through an insidious income tax system and set of nefarious regulatory schemes – is indeed endemic of the very abuses and usurpations that gave our forefathers just cause to birth the Declaration of Independence.

Last week, readers of this column learned of three specific examples – President Thomas Jefferson; U.S. Supreme Court Justice Robert Jackson; and, IRS commissioner Thomas C. Andrews – in which courageous Americans through the years have spoken out to alert their fellow citizens to the injurious income tax system being used by government to take property and control the people.

Yet, it is former IRS commissioner Thomas Andrews’ confessionary alert that is repeated here because – in just 40 words – he pointedly provides the ringing evidentiary indictment of both the federal income tax system and the IRS bureaucracy: “A lot of the people living today … don’t know what the buying power of success was … before we decided to use … excessive income taxes … to punish success … and estate and gift taxes … to force every generation … to start from scratch.”

So, what can be done now?

In short, as described in this series:

Repeal the income tax in 2011; and, concurrent with the start of the repeal process, shrink; then shutter the IRS by the end of 2012.

To address some essential questions:

How could government be funded in lieu of the current income tax?

Implement a calibrated version of one the following tax models:

• Fair Tax – a general national sales tax.

• Flat Tax – a flat tax still on income.

Do this (at least) interim to implementing a government funding model decided by the people.

In a future column I will discuss the pros and cons of the fair tax, the flat tax, and other models as well as the calibrations each may need in order to ensure equity consistent with the original intent of our founding.

Could the IRS be abolished?

Yes – by year end 2012.

During the proposed ‘wind-down period’, the expansion of electronic processing would be accelerated. (See www.baldwincountynow.com for two prior columns outlining some details.)

Now – Breaking News:

For any skeptics and angry progressives (yes, I enjoy reading all feedback) here’s more information of timely coincidence confirming that “shrinking; then shuttering the IRS” is, indeed, quite doable:

Last Friday, Jan. 14, the IRS announced that the “Free e-File program” would be available again to “individuals or families with 2010 adjusted gross incomes of $58,000 or less.”

Also, the IRS announced that Free File “Fill-able Forms” – the electronic version of IRS paper forms – has no income restrictions to use, print and mail in to them.

And, this week Intuit’s TurboTax releases “Snap Tax”, a new mobile application that – get ready for this: “smart phone users can use to file a 1040EZ form by (first) taking a picture of their W-2.” An estimated 22 million Americans are “eligible to file a 1040EZ” if they “claim the standard deduction, have no dependents, and earn less than $100,000.”

The implications of these new announcements are clear. As described in this series actually “shrinking; then, shuttering the IRS” is absolutely doable.

All that need be done is for the U.S. Congress to direct the IRS to treat all Americans the same way, that is, make all citizens “eligible” (as the IRS likes to decree) to use the same 1040 general form.

It really is as simple as ABC:

Reduce forms to a “core few.”

Simplify those forms and make all taxpayers eligible. Intake and process all forms electronically.

Staff reductions and redeployments decrease IRS staff levels continuously during the “shrink the IRS” phase (2011).

Then, by the end of the “shuttering the IRS” phase (2012), the bulbous bureaucracy will be gone.

This week's poll question: 

Do you prefer repealing the Income Tax? If so, replace it with what type of tax?

Go to www.keysurveys.us to answer.

The results of last week’s poll:

Should IRS Form 1040 be Simplified and Streamlined?

(196 responses)

YES – 98.98 percent

NO – 0.51 percent

NOT SURE - 0.51 percent

Richard Olivastro is president of Olivastro Communications and founder of Citizens for Change. He can be reached via e-mail at RichOlivastro@gmail.com or phoned at 1-877-RichSpeaks.