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Tax Carnival #42: Election 2008…

Tomorrow is Election Day and, as usual, taxes have played a big part in the process.So it is only fitting that this 42nd Carnival of Taxes is our Election 2008 edition.But before you head into our tax blog voting booth, a few comments.First, we got lot…

I don’t think many people here are arguing against taxes in an of themselves, just the current progressive income task on labor and investment, and how it reduces incentives to work and invest, especially when used to fund entitlement programs.

Too bad the US doesn’t care about it’s expatriates.

It is true that you can offset the tax burden with taxes you have to pay while working abroad and also, that there is a taxable exemption for the first $83K of income. However the foreign tax credit is means tested and the total foreign taxes paid is reduced by calculation so you have to write another check to Uncle Sam.

As example, my effective tax rate abroad is 35% (currently the highest US tax rate for Federal tax) and yet I have to write Uncle Sam an addional check for about 6% more. Where is Obama to help me out? Is this paying my share? For what, exactly?

I don’t use the roads, hospitals, schools, or airports.

Go ahead and don’t pay your taxes. It’s all a crooked setup anyway.

Mike

Many people heard the words of Gandhi from his several years in prison. Prison shouldn’t inhibit change. In fact, it can make some martyrs. No – I don’t compare myself to that miracle of a man, I pay taxes. I said that before.

Ben Tasker above sums up what I’m trying to say. At least question authority if you wont challenge it.

As for tax reform – I would follow a model described by Ralph Nader http://www.votenader.org/issues/fiscal/fair-tax/

After a bit more research, I found this case:

US v Carlson

http://sorabji.com/l/law/F2/61.....-1277.html

If you’d like to protest taxes, this case should be required reading.

The court doesn’t like it when you use the Fifth to avoid justice, and the judge took into account that Carlson cited every argument out there to avoid taxes. This led the court to believe that Carlson was using the Fifth in an offensive manner, while the Fifth was intended to be used defensively. When the court considered this when balancing the protection of the individual against the governments interests, it considerably weakened the weight of his Fifth amendment argument. I’m nowhere near a lawyer, but it sounds like if you had the right supreme court justices you might be able to get a favorable judgment, as long as you don’t concoct or are connected to some elaborate plan to protest taxes. Instead of saying taxes are unconstitutional because Ohio wasn’t a state at the right time, it may be easier to argue that you don’t want to declare your income because a discrepancy could result in a criminal suit. I don’t have the guts to do such a thing, but I’d love to see someone take up the case.

Its not like the government would collapse without the income tax, they could easily charge a flat retail tax or some such thing. They’d just be forced to use a tax method that wouldn’t be as easily used for social engineering

It would probably be easier to just work within the political system to reform the tax code, especially with how popular the idea seems to be at present. With all these deductions and difference tax brackets, the government uses the tax for social engineering purposes, NOT just revenue raising ones. Although this may work in favor of your ideals during one election cycle, its easy to argue a change in power could quickly invert the government’s social engineering goals to something you find abhorrent.

http://en.wikipedia.org/wiki/F.....ax_returns

I don’t know who would pay taxes on illegal income, but that’s how the court suggests you do it. I’m suggesting that one might be able to take it one step further and refuse to report the amount of income, instead of just the type of income.

(I’m running through the arguments in my head now) However, the IRS may argue that the actual amount of income earned could not be used as evidence against you.

Then again, if you pay SOME taxes, but pay the wrong amount you could claim the Fifth when reporting other income that would dictate you should’ve paid more? Of course, the Man could probably subpoena your employer and prove you paid the wrong amount, without violating the Fifth. I don’t know if you can plead the Fifth during an audit.

@ Jeremy, If you want to stop paying taxes to send a message then go ahead and I am sure your cell-mates will love to hear your message.

There are better ways to inspire change.

I agree completely that this system is much more fair, and it is avoidable to an extent. I would much rather this system than what we have now, but that being said. I think this could and should be an intermediate step for getting rid of the income tax as well as such a fair tax. If they government got to the size it needs to be, neither of these taxes would be needed and the government could actually protect us while living within its means. Good post.

The one that should be at the forefront is that no one should blindly follow authority because authority has a history of ALWAYS being corrupt. You don’t follow rules because they’re rules. You have to agree to play the game first. If the game is unfair – don’t play it.

The point is to keep an open-mind and not remain complacent. We, as Americans, have been hit hard by something evil (foreclosures, stock market crash, lost civil liberties, etc.) we have the right to know what’s going on. We have the right of indignation. We have the right to challenge it.

Change for the betterment of society is inevitable. The harder change is resisted – the harder change hits us. Right now the powers that be are too powerful and we cannot democratically make change in our country. The government has allowed (unelected) corporations to decide how resources are allocated. Corporations, because we live in a capitalist society that rewards competition, will put profits above the general public – no matter how clean they make it look.

They also wield that power in government and society by inundating Washington with lobbyists and controlling main stream media.

There’s a reason that “duty” has been put on such a high pedestal in our society – it keeps you in line. But you should know what’s at the end of that line, or why there is a line before you commit to staying in it.