There is confusion, misrepresentation and lack of understanding about the federal tax problems and solutions.
The root cause of taxation problems is the 16th Amendment (enables direct taxation) passed in 1913. This amendment gave government huge new taxing power for the first legal income tax, the IRS, payroll taxes and tax withholding. We lost freedom, liberty and civil rights.
The 16th Amendment enables a graduated income tax.
Consider the following problems:
■ The federal tax code is over 74,000 pages; too large to understand, administer, full of loop holes, encourages bad practices and debt.
■ IRS investigation requires proving innocence without judge or jury, thus a loss of Civil Rights.
■ Direct taxation discourages production (income, savings and investment), but production creates a vibrant economy, more jobs, higher standard of living and larger tax base.
■ We want jobs, but have a regressive payroll tax on jobs shared 50-50 by the employee and the employer.
■ All taxes and fees to businesses are costs that increase prices and are passed onto the next buyer until paid by the final consumer. Thus nobody is tax free, and pays over 28 cents per dollar in embedded business taxes as a hidden regressive sales tax.
Tell Congress: Pass the Fair Tax Act of 2015! Sign the petition.