Taxes

789 Responses




Ron Paul supports the elimination of the income tax and the Internal Revenue Service (IRS). He asserts that Congress had no power to impose a direct income tax and has introduced legislation to repeal of the 16th Amendment to the Constitution, which was ratified on February 3, 1913.

An income tax is the most degrading and totalitarian of all possible taxes. Its implementation wrongly suggests that the government owns the lives and labor of the citizens it is supposed to represent. Tellingly, “a heavy progressive or graduated income tax” is Plank #2 of the Communist Manifesto, which was written by Karl Marx and Friedrich Engels and first published in 1848.

To provide funding for the federal government, Ron Paul supports excise taxes, non-protectionist tariffs, massive cuts in spending.

Ron Paul discusses the income tax and the “FAIR Tax” in May 2007:

On November 20, 2008 Ron Paul said in a New York Times / Freakonomics interview:

“I want to abolish the income tax, but I don’t want to replace it with anything. About 45 percent of all federal revenue comes from the personal income tax. That means that about 55 percent — over half of all revenue — comes from other sources, like excise taxes, fees, and corporate taxes.

We could eliminate the income tax, replace it with nothing, and still fund the same level of big government we had in the late 1990s. We don’t need to “replace” the income tax at all. I see a consumption tax as being a little better than the personal income tax, and I would vote for the Fair-Tax if it came up in the House of Representatives, but it is not my goal. We can do better.”

On May 7, 2001, Ron Paul wrote the following column:

The Case Against the Income Tax

Could America exist without an income tax? The idea seems radical, yet in truth America did just fine without a federal income tax for the first 126 years of its history. Prior to 1913, the government operated with revenues raised through tariffs, excise taxes, and property taxes, without ever touching a worker’s paycheck. In the late 1800s, when Congress first attempted to impose an income tax, the notion of taxing a citizen’s hard work was considered radical! Public outcry ensued; more importantly, the Supreme Court ruled the income tax unconstitutional. Only with passage of the 16th Amendment did Congress gain the ability to tax the productive endeavors of its citizens.

Yet don’t we need an income tax to fund the important functions of the federal government? You may be surprised to know that the income tax accounts for only approximately one-third of federal revenue. Only 10 years ago, the federal budget was roughly one-third less than it is today. Surely we could find ways to cut spending back to 1990 levels, especially when the Treasury has single year tax surpluses for the past several years. So perhaps the idea of an America without an income tax is not so radical after all.

The harmful effects of the income tax are obvious. First and foremost, it has enabled government to expand far beyond its proper constitutional limits, regulating virtually every aspect of our lives. It has given government a claim on our lives and work, destroying our privacy in the process. It takes billions of dollars out of the legitimate private economy, with most Americans giving more than a third of everything they make to the federal government. This economic drain destroys jobs and penalizes productive behavior. The ridiculous complexity of the tax laws makes compliance a nightmare for both individuals and businesses. All things considered, our Founders would be dismayed by the income tax mess and the tragic loss of liberty which results.

America without an income tax would be far more prosperous and far more free, but we must be prepared to fight to regain the liberty we have lost incrementally over the past century. I recently introduced “The Liberty Amendment,” legislation which would repeal the 16th Amendment and effectively abolish the income tax. I truly believe that real tax reform, reform that so many frustrated Americans desperately want, requires bold legislation that challenges the Washington mind set. Congress talks about reform, but the current tax debate really involves nothing of substance. Both parties are content to continue tinkering with the edges of the tax code to please various special interests. The Liberty Amendment is an attempt to eliminate the system altogether, forcing Congress to find a simple and fair way to collect limited federal revenues. Most of all, the Liberty Amendment is an initiative aimed at reducing the size and scope of the federal government.

Is it impossible to end the income tax? I don’t believe so. In fact, I believe a serious groundswell movement of disaffected taxpayers is growing in this country. Millions of Americans are fed up with the current tax system, and they will bring pressure on Congress. Some sidestep Congress completely, bringing legal challenges questioning the validity of the tax code and the 16th Amendment itself. Ultimately, the Liberty Amendment could serve as a flashpoint for these millions of voices.

Ron Paul introduced the Liberty Amendment in 1998, 1999, 2003, 2005, 2007 and 2009. It is currently know as H. J. RES. 48 and has 2 cosponsors, Roscoe G. Bartlett (MD-6) and Don Young (AK). Here is the text of the proposed amendment:

Liberty Amendment

Section 1. The Government of the United States shall not engage in any business, professional, commercial, financial, or industrial enterprise except as specified in the Constitution.

Section 2. The constitution or laws of any State, or the laws of the United States, shall not be subject to the terms of any foreign or domestic agreement which would abrogate this amendment.

Section 3. The activities of the United States Government which violate the intent and purposes of this amendment shall, within a period of three years from the date of the ratification of this amendment, be liquidated and the properties and facilities affected shall be sold.

Section 4. Three years after the ratification of this amendment the sixteenth article of amendments to the Constitution of the United States shall stand repealed and thereafter Congress shall not levy taxes on personal incomes, estates, and gifts.’.

On April 30, 2009 Ron Paul introduced the Liberty Amendment with the following speech:

Ron Paul: Madam Speaker, I am pleased to introduce the Liberty Amendment, which repeals the 16th Amendment, thus paving the way for real change in the way government collects and spends the people’s hard-earned money. The Liberty Amendment also explicitly forbids the Federal government from performing any action not explicitly authorized by the United States Constitution.

The 16th Amendment gives the Federal government a direct claim on the lives of American citizens by enabling Congress to levy a direct income tax on individuals. Until the passage of the 16th amendment, the Supreme Court had consistently held that Congress had no power to impose an income tax.

Income taxes are responsible for the transformation of the Federal government from one of limited powers into a vast leviathan whose tentacles reach into almost every aspect of American life. Thanks to the income tax, today the Federal government routinely invades our privacy, and penalizes our every endeavor.

The Founding Fathers realized that “the power to tax is the power to destroy,” which is why they did not give the Federal government the power to impose an income tax. Needless to say, the Founders would be horrified to know that Americans today give more than a third of their income to the Federal government.

Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on compliance with an ever-more complex tax code. The increased interest in flat-tax and national sales tax proposals, as well as the increasing number of small businesses that question the Internal Revenue Service’s (IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms.

Madam Speaker, America survived and prospered for 140 years without an income tax, and with a Federal government that generally adhered to strictly constitutional functions, operating with modest excise revenues. The income tax opened the door to the era (and errors) of Big Government. I hope my colleagues will help close that door by cosponsoring the Liberty Amendment.


789 responses to “Taxes”

  1. April

    American government is too big for its britches. Don’t believe me? It’s gotten so puffed up that it has thrown Christ out and put itself on the Lord’s throne. We don’t need an American government that takes our income and tells us we can’t pray to God in public. We don’t need an American government that puts its talons in our pockets but keeps the Bible out of the classroom. Do you know why a government would be interested in keeping its populace ignorant of the contents of the Bible? It’s because when people realize the Lord’s way, they will reject the way of the oppressor. People will not accept unfair treatment from the government when they know what the Lord has to say about justice and righteousness.

    The government that wants to separate you from the Lord is a government intent on owning its citizens. A government that doesn’t see it as profitable to acknowledge the Lord and obey his laws is a government that wants its own laws, and those laws will not be in favor of the people. We are currently saddled with a government that is not American. It’s time to throw it off.

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    1. Gabriel

      Sorry, April. I’m not Christian. I believe Christians have the right to exist and worship Jesus and their God all they want. And I have the right to exist and worship my Gods. Atheists have the right to exist and believe Gods don’t exist.

      All I want? Is to be left to worship my Gods.

      However the gov’t IS too big.

      We’re not a theocracy. We’ve never been. Thank the Gods. Separation of Church and State is extremely important.

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  2. todd hayes

    the data clearly shows that since 1965, median income for those making $80k or below has stayed level(except during the Clinton tax hikes of the early ’90′s),while the median income for those making $80k or above has increased 1.5 times(including those early ’90′s). if Supply-side Economics(introduced in 1980) truly worked for EVERYONE, we would have seen a rise in EVERYONE’S income. the Republicans are impatient with 4 years of a flailing economy,yet are perfectly content to stick with something that has only worked for the rich in 30 years. in the real world,you water/fertilize a plant’s ROOTS, not it’s leaves. in a Consumer Based Economy,it is the Consumer,not Big Oil,Big Banks, Big 3, the Pres,Congress or Mitt Romney who is the Job Creator. i like Ron’s positions on taxes,the Fed&the Drug War. what is his position on Supply-side?

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  3. james fields

    I am sorry you are retiring. When 9/11 happen and Bush was demanding we charge in you said I want to know more. When democratis were afraid that if they went against Bush. You said I was voted in by voter not Bush. We need men and women that represent the voter that got them to congress not Congressmen that vote always with their party. I hope your son is the man you are.

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  4. james fields

    This is not a bad ideal. If you are infavor of a lower tax rate on the rich to make more jobs then if no one paid an income tas we could make even more jobs. No income on income would also mean you would not have to do income tax filling every year. And if you took that extra money you would have in your pay check you could invest it. If you made money if would be tax free. Your taxes would start when you buy something. Example if you make 100k you would have an extra 35k because you would no have to pay any income tax.
    And if you were the 1 per cent and bought a 100k car and a 3 mil house. Let say the the sale tax was a flat 30 per cent what would your taxes be? And if you were one of these people that make 200 a week under the table you would not be braking the law by not reporting the extra income. So when you bought something you would pay the tax.
    So the people that have the most money paying at 15 per cent would get to keep all their income until they buy something. I do not believe they shop at Walmart.
    Maybe a high in high price store that they at this time can do a lot of write offs. But if they do not have to fill taxes that means they would be paying more.
    Seem like it would be a lot better that the way we are doing it.
    Congress will not do this because lower your income taxes is one way they will get your vote and with out income tax they cound not off this. The rich that are running the US will not go for this because they would pay more.

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  6. Ron Paul on the income tax: Get rid of it and go to consumption taxes – The Star-Ledger - Rise of the Right

    [...] knows anything about politics knows the income tax originated as  a Marxist idea, as the author of this page describing Ron Paul’s position on taxes [...]

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  7. Ron Paul on the income tax: Get rid of it and go to consumption taxes | The Rand Paul Review

    [...] anything about politics knows the income tax originated as  a Marxist idea, as the author of this page describing Ron Paul’s position on taxes notes: An income tax is the most degrading and [...]

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  8. ChrisInMaryville's Blog » Is the Ron Paul the Best Hope for Progressives?

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  9. Is the Ron Paul the Best Hope for Progressives? – Reason Online | The Rand Paul Review

    [...] is in many ways the rightest of right wingers, with his desire to kill the income tax, end governmentinterference in medical care, and get to a balanced budget in three years with no [...]

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  10. Is the Ron Paul the Best Hope for Progressives? – - MagNewsX - Mag News AggregatorMagNewsX – Mag News Aggregator

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  12. Annabeth Catudan

    I could not agree more!! I am very frustrated that not only I pay my share of income taxes I have to pay more because I could not claim losses on my real estate and then to top it off, when I sold the property because I can no longer afford it, I was told by the IRS that I cant claim suspended losses because I did not gain anything.

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  17. Ronald A Whiteman

    We need to inforce the oath of office.
    If we did they would not be doing that they are doing.
    You know them by that they are doing and voting for.

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  18. yearlyincometaxes

    nice post. congrats! Hope elimination of income tax will happen.

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  20. Kiss my grits

    Here is an e-mail I would like to share, because it reflects the way millions of us feel who are in the same boat.

    This has been around several times in the past but it is a good reminder of what we should consider when we vote! Career politicians, especially solicialists, have only one concern with the working class people in the USA: That they keep working to contribute to the tax base that the politicians continue to overspend on those who do not work or contribute their fair share.

    Enough said!

    Alan Simpson, Senator from Wyoming , Co-Chair of the Deficit Commission, calls senior citizens the Greediest Generation as he compared “Social Security” to a Milk Cow with 310 million teats.

    Here’s a response in a letter from PATTY MYERS in Montana … I think she is a little ticked off! She also tells it like it is!
    “Hey Alan, let’s get a few things straight..
    1. As a career politician, you have been on the public dole for FIFTY YEARS.
    2. I have been paying Social Security taxes for 48 YEARS (since I was 15 years old. I am now 63).
    3 My Social Security payments, and those of millions of other Americans, were safely tucked away in an interest bearing account for decades until you political pukes decided to raid the account and give OUR money to a bunch of zero ambition losers in return for votes, thus bankrupting the system and turning Social Security into a Ponzi scheme that would have made Bernie Madoff proud..
    4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the proverbial football away from millions of American seniors nearing retirement and moved the goalposts for full retirement from age 65 to age 67. NOW, you and your shill commission is proposing to move the goalposts YET AGAIN.
    5. I, and millions of other Americans, have been paying into Medicare from Day One, and now you morons propose to change the rules of the game. Why? Because you idiots mismanaged other parts of the economy to such an extent that you need to steal money from Medicare to pay the bills.
    6. I, and millions of other Americans, have been paying income taxes our entire lives, and now you propose to increase our taxes yet again. Why? Because you incompetent bastards spent our money so profligately that you just kept on spending even after you ran out of money. Now, you come to the American taxpayers and say you need more to pay off YOUR debt.
    To add insult to injury, you label us “greedy” for calling “bullshit” on your incompetence. Well, Captain Bullshit, I have a few questions for YOU.

    1. How much money have you earned from the American taxpayers during your pathetic 50-year political career?
    2. At what age did you retire from your pathetic political career, and how much are you receiving in annual retirement benefits from the American taxpayers?
    3. How much do you pay for YOUR government provided health insurance?
    4. What cuts in YOUR retirement and healthcare benefits are you proposing in your disgusting deficit reduction proposal, or, as usual, have you exempted yourself and your political cronies?
    It is you, Captain Bullshit, and your political co-conspirators called Congress who are the”greedy” ones. It is you and your fellow nutcases who have bankrupted America and stolen the American dream from millions of loyal, patriotic taxpayers. And for what? Votes. That’s right, sir. You and yours have bankrupted America for the sole purpose of advancing your pathetic political careers. You know it, we know it, and you know that we know it.

    And you can take that to the bank, you miserable S.O.B.

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    wow, well done. this makes way more sense than our current system

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