NOTE: THIS SPECIAL TWO PART CHAIRMAN’S REPORT DISCUSSES THE HISTORY AND GROWTH OF TAX EVASION -- PART I -- Taxes, No One Likes Them But Still Mostly Voluntary
Purpose of Taxes
There has never been a government that did not have to obtain revenue from its citizens to perform its functions. Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes." Justice Oliver Wendell Holmes in a dissenting opinion in a 1927 case wrote, Taxes are the price we pay for civilization. I like to pay taxes. With them I buy civilization.
No One Really Likes Paying Taxes
Governments have understood that its people don’t like paying taxes. Their citizens understand that each time they pay a tax their ability to consume is reduced.
In September of 1796, President George Washington had a letter published in the American Daily Advertiser that was a message to his fellow Americans as he was preparing to leave office. Initially drafted by James Madison and edited by Alexander Hamilton, it was extensively rewritten by Washington and is very much worth reading. In this letter, Washington said about taxes, that to have revenue there must be taxes; that no taxes can be devised which are not more or less inconvenient and unpleasant…
Alexander Hamilton, Washington’s Secretary of the Treasury said, As to taxes, they are evidently inseparable from Government. It is impossible without them to pay the debts of the nation, to protect it from foreign danger, or to secure individuals from lawless violence and rapine.
The great English statesmen Edmund Burke, said, To tax and to please, no more than to love and to be wise, is not given to men. Winston Churchill said, There is no such thing as a good tax.
Most Taxes Are Ultimately Voluntary
The above statement may seem counter-intuitive if no one likes paying taxes, but few taxes can be collected without the agreement of the people taxed. We see this not just by criminals selling stolen goods but also by the willingness of people to assist others evade the tax.
For many years, the United States was regarded with awe by other governments because of its citizens’ willingness to pay income taxes. It should also be remembered that until the 1960’s, the U.S. income tax did not require the types of extensive reports from third parties to verify income earned—such as the reporting of interest by banks.
In the 1940’s, U.S. Supreme Court Justice Jackson said, The United States has a system of taxation by confession. That a people so numerous, scattered and individualistic annually assess itself with a tax liability often in highly burdensome amounts, is a reassuring sign of the stability and vitality of our system of government.
In 1962, IRS Commissioner Caplin stated, No other nation in the world has ever equaled this record [of voluntary compliance. It is a tribute to our people, their tradition of honesty, and their high sense of responsibility in supporting our … government.
However, by the late 1970’s, despite more and more attempts to “coerce” compliance, this attitude had changed. In 1982, Justice Richard Neely wrote, Cheating on federal and state income tax is all pervasive in all classes of society; except among the compulsively honest, cheating usually occurs in direct proportion to opportunity.
COMING NEXT WEEK Part Two: The Evasion Solution -- FAIRtax the visible, simple, efficient fix
1040 Club and Contributions
Thanks to all of you who are joining and/or remaining members of the 1040 Club. AFFT's 1040 Club members contribute $10.40 per month to AFFT. This provides a steady funding platform and allows us to ensure that we keep the pressure on the elites to prevent them from “putting lipstick on a pig” and not doing real tax reform.
If you are not yet a member of the 1040 Club, or if you are a member but want to join for someone else, please go to this link and sign up.
If you believe that all you can contribute to our efforts is $10, please go to FAIRtax.org and donate. We have our best chance now and need your help. Many of us prefer to make one donation as opposed to monthly donations and this greatly helps.
FAIRtax Power Radio
There are many ways in which people can help us educate more Americans about the FAIRtax. In Programs 29 & 30, the FAIRtax Guys (Bob Paxton and Ron Maiellaro) describe how listeners can support and promote our efforts. Program 29 concentrates on simple but effective things for people with busy schedules, whereas Program 30 suggests some activities that might take a little more time. The programs are free to the listeners. Please share these links with your friends and relatives.
We're pleased to announce that FAIRtax Power Radio is now available on iTunes and Spreaker. A new episode will be posted every Friday morning but you can listen at any time by going to one of these sites. There is no cost to listen. By this time next week, we expect to be on iHeart Radio too.
Recently Bob and Ron decided to start from scratch discussing the many problems with the current income tax system and the reason why REAL tax reform is so desperately needed in our country. In episode 3, Thomas Jefferson paid them a visit and gave his opinion of our federal income tax. As you might guess, he wasn’t very happy with what he saw. Then we searched for “the perfect tax system”.
In future episodes, you will hear from Bob “Paxworthy” famous for his “You Might Be A FAIRtax Fan!” routine. The FAIRtax Guys are always open to your thoughts and opinions. You can contact them at thefairtaxguys@gmail.com.
Episodes are still available on SoundCloud and YouTube but Spreaker is the site that lets up branch out to other, more popular sites that cater to podcasting.
The FAIRtax Guys will continue with FAIRtax Power Radio until HR 25 becomes the law of the land in 2017. After that, I’m sure the episodes will go into the Radio Hall of Fame! Please share this information with your constituents and anyone else you care to. The more people we educate about the FAIRtax, the better the chances are that it will become a reality next year.
To listen to FTPR on SoundCloud (free and audio only) go to these links:
FTPR Program 29 on SoundCloud
FTPR Program 30 on SoundCloud
FTPR Program 29 on YouTube
FTPR Program 30 on YouTube
AFFT National LOGO Store
Rudy has notified me that the special autographed copies of the the FAIRtax book are now sold. Congratulations to those who were lucky enough to acquire a copy.
When visiting the Store, don’t forget to order a supply of FAIRtax Palm Cards. Besides handing out palm cards at meeting and events, whenever you send mail through the post office, consider including at least one FAIRtax informational palm card in the envelope - keep spreading the word.
Please take a moment and visit our store by clicking here.
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Thank you for staying FAIRtax strong!
