TAXPAYERS
ASSOCIATION, INC.
Largo, FL 33771
(727) 533-8484
WELCOME to the Taxpayers Association
We are a Florida Not-for-Profit corporation and a 501(c)(3) tax deductible organization, founded in 1994. The officers and directors of the association are registered with the Florida Secretary of State.
The Associations goal
is to educate our fellow Americans to better and wiser ways our leaders can
govern (yes, govern, not rule). Our initial goal is to promote a better way
to fund governments at all levels, federal, State, County, municipal, etc.
We are NOT and never have advocated the agendas of the de-taxers nor
do we recommend that people defy governments by not filing various tax returns.
What we DO advocate is a better, much better way of funding governments.
Stop and consider...
TAXATION…the way it ought to be!
The Constitution of the United States, Article 1, section 9, paragraph 4;
“No capitation or other direct tax shall be laid unless in proportion
to the census…” If you’re one of the few who have read
our Constitution you’ll notice the proverbial (*) after this section,
(*) = “…see XVI Amendment.” In theory the 16th Amendment
granted Congress powers it didn’t already have. Nonsense! The federal
government always had the power to tax your income providing it fell within
the restrictions of Article 1, section 9, paragraph 4.
Think not? Grab your Constitution (if you don’t have one we’ll gladly
give you one for FREE) and read the 18th Amendment. This is “prohibition.”
And what does prohibition have to do with the income tax? Read the 21st Amendment.
You’ll notice that the 21st Amendment specifically repealed the 18th
Amendment. Question; within the 16th Amendment did you notice where Article
1, section 9, paragraph 4 is specifically repealed?
Point of clarity, as long as people demand governmental services, everything
from paperclips to battleships, governments must raise sufficient revenues
to cover the costs. So the question is, how should taxes be levied/collected?
First off we should have little or no contact with the federal government.
This is why we elect Representatives; it's their job! Taxation within our
Republic has always been a very sticky proposition…matter of fact, our
major dispute with the British was over taxation (King George had the gall
to levy a whopping 5% tax on the Colonies. Today your portion of just the
Social Security “contribution” is over 7.5%).
Alexander Hamilton, our first tax collector, was asked (Federalist, XII),
“…you fought a war with the British principally over taxation…now
that you have your liberty how do you propose funding this new government
of yours?” His response, “the ability of a country to pay
taxes must always be proportioned, in a great degree, to the quantity of money
in circulation and to the celerity with which it circulates. Commerce, contributing
to both of these objects must of necessity render the payment of taxes easier
and facilitate the requisite supplies to the treasury.”
Taxation, with few exceptions, is a 10th Amendment issue, States Rights! If
the federal government “needs” a billion dollars and our State has
10% of the population (according to the census) the federal government should
send the governor a bill for $100 million (10%). How the State raises the
revenue is the STATE’S BUSINESS, as long as it does not conflict with
article 1, section 9, paragraph 4 (and a few other sections, i.e. 4th Amendment).
There is only one Constitutional way to fund governments. An indirect, voluntary,
proportionate tax on consumption. Spend the money pay the tax and eliminate
ALL the other unconstitutional taxes. It’s that simple!
Everyone wants
to go to heaven but nobody wants to die! Ever heard members of Congress, the
folks who write the tax laws, praise our existing tax system? Here are but
a few examples of Congressional, presidential and bureaucrat quotes:
"Dear Mr. Holmes:
Thank you for your letter.
I’m glad to know of your support for eliminating the income tax and replacing
it with a consumption-based tax.
While the Ways and Means Committee will initially address the tax cuts specified
in the Contract with America, I plan to study and consider the possibility
of eliminating our current income tax and replacing it with some type of consumption
tax. I’m about convinced that we can’t effectively make the income
tax a tool that the American people will be most comfortable with and the
engine that will drive job creation, economic activity and increase the family
income for the people of this country. I want to emphasize, however, that
any consumption tax would be a complete alternative to the income tax, not
an add-on tax.
Again, I appreciate your views on this important issue.
Sincerely,
Bill Archer
Chairman
3 February, 1995"
Another:
“Our federal
tax system is, in short, utterly impossible, utterly unjust and completely
counter-productive. It’s earned a rebellion and it’s time we rebelled.
Ronald Reagan, 30 May, 1985.”
And another:
“I have participated
in the tax system on the inside and the outside. My work on the outside has
included planning the transactions and handling tax controversies and litigation.
On the inside I served as the nation’s chief tax ‘enforcer’
and then its chief tax administrator. In short I have just about seen it all
when it comes to the workings of the tax system. This experience has led me
to the conclusion that we should REPEAL the Internal Revenue Code and start
over!”
“…our current tax law discourages savings. Individuals are taxed
on their earnings and they are taxed again on income from savings. Corporate
profits are taxed twice; once at the corporate level and again at the shareholder
level. Capital gains, including gain from inflation is taxes and the tax law
still favors debt over equity. The tax system thus bears some responsibility
for the current low rates of savings in the United States. We need to design
a tax system that will, at a minimum, not discourage savings…I want to
emphasize that I do not favor adding on new taxes, rather, I urge total revision
of the current system. In my view the desirable characteristics are the following:
The tax system should be simple. It should be easily understood and administrable.
It should be fair. It should minimize opportunities for tax avoidance. It
should not discourage savings. It should be neutral with respect to the economic
allocations of resources and it should enhance the country’s competitive
position in a global economy.” (Shirley D. Peterson, President Hood
College; further credentials available upon request).
TAX HISTORY
From; For Good and
Evil, the impact of taxes on the course of civilization, by Dr. Charles
Adams.
“You will give the tribute or I will thunder against your city and destroy
it!” Aristophanes concerning Athenian tribute (taxes). In the 6th century
(BC) the Persians, under Cyrus, ruled the entire civilized world including
Egypt. The Greek mainland was the only area not subject to Persian taxes.
Around 490 BC the Persian king Darius sent envoy’s to the Greek city-states
demanding that they submit to Persian tribute. The city-states were all independent
and ripe for takeover by the powerful Persians, who could see no reason why
Greek riches should not be flowing to Darius.
Two leading Greek cities, Athens and Sparta, formed a defensive league with
a few other smaller city-states. This new league assessed taxes from its member
in order to form (pay for) a common army, an army that would have a central
command. With this united front the Greeks did indeed defeat the Persians
at the battle of Marathon. The importance of this battle is second to none
despite the fact public schools rarely teach anything about it.
Because the Greeks prevailed Greek culture took control of civilization and
has played a dominant role ever since. To this day we copy Greece’s architecture,
art, produce her plays, study Greek philosophy, admire its science (footnote;
the Greeks knew the earth was round 18 centuries before Columbus did and even
calculated the earths size within a few hundred miles. They also knew that
the sun was the center of our solar system and that earth revolved around
the sun, not the other way around). We also learned and copied another very
important lesson, Greece’s love for liberty and democracy.
The Greeks applied their intellect to politics and economics. They invented
democracy and established a highly developed system of capitalism. OUR political
and economic system is modeled after the ancient Greeks. In ancient times,
except for the Greeks, all civilizations were ruled by despotic government.
The case can be made that the Greeks greatest talent may have been their ability
to build a civilized society without a loss of liberty.
Greek democracy and liberty developed out of bad experiences (what’s
new?). Immediately before the rise of ancient Greek democracy tyrants and
Draconians ruled the Greek city-states. Although the post battle of Marathon
prosperity was short lived the ancients learned a very valuable lesson, the
evils of TOO MUCH POLITICAL POWER. Draconians and tyrants still plague civilization
and lurk in the hallways of all governments.
With few exceptions tyrants exercise government powers oppressively. Quoting
Dr. Adams, “whenever excessive power is bestowed on a government agency
or official tyranny will follow!” The arsenal of power given to our modern
revenue producing bureaucracies makes them the seedbeds for tyrants. Today,
unfortunately, we all too often attach brutal penalties to enforce regulatory
matters outside the realm of true crime.
To our knowledge the ancient Greeks reintroduced the study of history. Why?
They thought history was one of man’s most important tools for survival.
There were lessons to be learned by studying the past. We are creatures of
habit because we behave in a predictable pattern under similar circumstances.
The Greek historians compared Oriental (Persian) despotism with Greek democracy.
Why were the Greeks a free people while the Persians lived under despotic
rule? Although only the terminally naïve would oversimplify an explanation
but they concluded that one of THE most important aspects was their ability
to truly own private property. The Athenian people respected and mandated
property rights. They further perceived that tyranny was the product of an
oppressive tax system. If Greek liberty was to be preserved the tax system
of tyrants must be avoided! “The tax system is the barometer of the
liberty in any society.” (Adams)
The mandate, of the
first known democracies, included the belief that their liberty must include
indirect taxation; the individual should NEVER be taxed directly. But like
today, people demanded governmental services therefore some form of governmental
revenue production was necessary. What taxes did they allow? Proportionate
taxes based upon COMMERCIAL ACTIVITIES, such as sales, imports or the use
of public facilities (roads, bridges, sea-lanes, etc.).
The means of exchange (money) played a key role in making Athens the commercial
capital of the ancient world. The drachma was the most respected domestic
and international currency. Its silver content was pure and the Athenians
guarded its value and purity. In summary good laws protecting property and
the rights of its owners, sound money policy, safe sea-lanes and low taxes
were the foundations of ancient Greek prosperity and liberty.
If you have the time,
read the history about our current tax system. If you do, you will discover
that IT IS the tax system of tyrants! It punishes the productive, seizes
personal property, stifles individual initiative and worse it rewards the
unproductive. Keep one thing in mind; our current tax system is not the 11th
Commandment. It is not ordained by God (or anyone else), nor is it inspired
by anyone except those who want to gain and maintain power because the power
to tax is the power to control (destroy).
Our current, miserable, form of governmental revenue production is merely
someone’s idea as to how the revenues CAN be raised. The question is
how do you fight an idea? There’s only one way and that is with another
idea. A low percentage consumption tax can raise all the revenue any governmental
agency could possibly need and, at the same time, restore our constitutional
rights. Ideally, and mandated by the constitution, the State should levy and
collect the vast majority of governmental revenues including the funds need
to run the national government.
Article 1, section 9 paragraph 4; “No capitation (Footnote;
the old poll taxes were illegal) or other direct tax shall be laid
unless in proportion to the census…” Translation, capitation
is a body count tax, call it a personal toll but continuing, “unless
in proportion to the census…” Constitution forbids an individual
direct tax (capitation) but will allow revenue production based upon the census,
or population of the State. Example: Let’s assume Florida, or your State
has 10% of the national population and the federal government needs to raise
$1 billion. According to the constitution the State governor should get a
bill for $100 million (10%) but the method of raising those funds is exclusively
reserved to the State (see 10th Amendment). That’s the way it’s
supposed to work!
There are other and better methods to fund government.
All the time, no exceptions, cast-in-stone, historically accurate, tax payment
compliance is equal to the tax percentage levied, an unavoidable law of physics
(too bad tax law makers aren’t very good at physics). High tax percentage
rates equal high non-compliance! Conversely the lower the tax the higher the
compliance. A good tax system must be totally proportionate (everyone pays
the same percentage) and non-intrusive. A good tax system must be based upon
what you SPEND not what you earn or own.
Here’s a step by step “how to fix” this taxing problem:
1. Abolish almost ALL of the current tax codes and bureaucracies including
the States, counties, municipalities and special taxing districts (there are
exceptions, i.e. duties, tariffs, etc). This includes repealing the 16th Amendment.
(Oh,
did you know that within our republic we have well OVER 100,000 taxing entities?
Yes these are the various governmental agencies that can, one way or another,
reach into our pockets. One question that must be asked; how much does it
cost US to pay the overhead of these agencies? Did you know that there are
bureaus and sections within the IRS code that cost more to operate and/or
comply with than they collect? Also I know that within our local community
the “very productive (?)” property appraisers office costs more
than $6 million per year to operate. And the good we derive from this $6 million
is? Food for though: ALL property taxes are illegal! Stop and consider you
NEVER own your own home, impossible. You may pay-off the mortgage but don’t
pay the property tax and see how long you own your house. Property taxes are
a clear violation of the 4th and 14th Amendments.)
2. Implement a consumption tax, a tax based upon what is SPENT that contains
no exemptions, exceptions or exclusions. By broadening the base we can reduce
the percentage. Believe this, we can actually run governments, as is, no cuts
in social programs or any other programs with a simple and easy to comply
with 1% tax. Seems impossible? Remember the criteria; we must eliminate the
exemptions, exceptions and exclusions. If you, a corporation or even a governmental
entity BUY’S something pay a 1% tax and send it to the State treasury.
(Footnote: If there is enough demand we will post the figures
within this site. Nay Sayers who are about to leave the site, those of you
who have read enough heresy, according to the Statistical Abstract of the
United States and confirmed by the Federal Reserve Bank, the average dollar
(M1 only) changes hands 11/2
times a day. M1 total, as of March, 2003, is $1,234.708 billion. Rounding
things off let’s crunch the numbers: $1,235 billion x 365 days = $450,775
billion (that’s $450 trillion in cash flow, celerity if you wish, movement
of funds) minus what are called laterals (cashing a check or moving money
from a checkbook to another account is included in this figure) averages out
to 40%. $450.775 billion x 60% = $270,465 billion x 1% tax = $2,704.65 billion.
Oddly enough between the federal, States and local governments that’s
almost exactly what they’re currently collecting but keep one MAJOR thing
in mind…this available tax collection figure does NOT include how much
we’ll SAVE by eliminating all but 51 taxing entities. As previously stated
and easily confirmed we have over 100,000 taxing entities in this country
not to mention or included compliance costs. Via the consumption tax we propose
we’d have one federal agency and 50 State agencies…and you’d
own your property and business again. Your paycheck will have nothing withheld…and
April 15th will be the day after April 14th.)
Granted the aforementioned is an oversimplification but the facts contained
therein are accurate. Ironically this scenario is conservative, almost to
a fault. Realistically we cannot segregate M1 figures from M2. As of March,
2003, M2 equaled $5,893.644 billion.
Questions/Answers
1. If your proposal taxes EVERYTHING
that is bought, for example when a car company buy’s a screw for the
car, don’t you have a severe cumulative tax build-up?
A: What you’re talking about is called the “cascade.” And yes
this type of taxation will generate a cascade but we already have that. Stop
and consider the cost of an average can of baked beans, without a sales tax
being added at the checkout counter, is 40%+ stealth taxes. Loaf of bread
is the same. How can this be? Take the beans step by step; farmer paid property,
fuel, wages, etc., taxes. Elevator operator, the same; processing plant, again
we’re adding all the taxes including the taxes levied by the paper (label)
maker, glue and the can itself. Processor also pays a plethora of other governmental
fee’s and taxes. Then there’s the shipping taxes and the taxes the
store pay’s, i.e. utilities, property, etc., taxes. One day we tried
to calculate the sheer number of taxes on a loaf of bread. We stopped at 125.
Summarizing we already have a cascade but the difference between our proposed
cascade the existing is we’re not dealing in whole numbers. Our no exemption
proposed 1% tax, early in the cascade, is a fraction of a fraction.
Not long ago Ford Motor Company published its findings; contained within the
manufacture costs of the average SUV there’s almost $10,000 in stealth
taxes…and that’s before you purchase it.
2. Isn’t this consumption
tax regressive…poor people will be hurt by it?
A: Regressive? The proposed consumption tax is only levied upon what is purchased.
The more you buy the more you’ll pay but then the more you buy, generally
speaking, the more you have. It’s totally proportionate! If anything
our current tax plan is very harmful to the poor. Take the previously mentioned
can of baked beans. The poor are paying the same price as a wealthy person
pays but what percentage of their income is going toward paying the built-in
taxes vs. the wealthy person? Also stop and consider if you’re a renter
you are paying commercial rate property taxes (it’s built into your rent)
but you can’t deduct that expense from your income tax…but your
landlord can. Yes you have that right, you’re paying the tax, you cannot
deduct it from your income tax but the person collecting it can.
3. Isn’t this just a cleverly
disguised value added tax?
A: Yes and no. The major difference between our proposed tax and a VAT (value
added tax) is a VAT is 100% trickledown. The ONLY person who pays the tax
is the end user, i.e. the retail customer…and VATS are calculated using
whole numbers. The question you must ask yourself is, within the United States,
what figure is larger; retail sales OR transactions between companies, transactions
that no one sees? Believe me that’s a no-brainer. Inter-corporate transactions
are enormous and, via the existing tax code, 100% tax FREE!
4. What if I buy a stock or a
bond? Will this be taxable?
A: Our plan is a buyer pay but you have to ask the question, when you buy
a stock or a bond are you really buying anything? A bond is a loan it is not
a purchase and a stock is a bet (sorry stockbrokers but truth be told you’re
really high grade handicappers). When you buy a stock you’re betting
that the shares will increase in value so the question is did you really buy
anything? Our proposal mandates that something be purchased, whether goods
or services. Stocks and bonds are neither (our opinion)…and we didn’t
include them in the figures anyway.
5. What about an insurance policy,
going to tax that?
A: Back to the question, what have you really purchased? Insurance is nothing
more than legalized gambling. The company is betting you won’t need it
and you’re covering your bets in case you do. Worth mentioning and NEVER
disclosed, you’re already paying a premium tax. Most agents don’t
know this and even if they did they wouldn’t tell you. In certain States
it’s illegal to even inform the consumer they’re paying the tax.
6. Food, medication, doctors
and lawyers, going to tax them?
A: Yes! Food already has a plethora of taxes included (our plan will actually
reduce the costs of food). Medication taxes…already there. Now professional
services, i.e. doctors, lawyers, accountants, etc., why should they be exempt?
A buy is a buy is a buy. Buy something, goods or services, pay the tax.
7. This plan sounds terribly
complex. Won’t it make matters worse?
A: Current tax codes, codes that ALL of must comply with, are measured in
the hundred’s of thousands of pages and ignorance of the law is no excuse.
No one, I repeat, no one can comply with the existing tax codes. They’re
too complex, virtually incomprehensible for the average person (and most professionals)
and the compliance drag on the economy is horrendous. Our plan is simplicity
personified. Buy something, anything, pay a 1% tax. The individual, corporation
or store that collects the tax sends it to the State. There are no forms that
you need to complete, no mandatory filings and we can burn the hundreds of
thousands of pages full of tax compliance rules and regulations. Should make
one magnificent fire.
8. This looks like a backdoor
State income tax.
A: In a way it is. There will be a tax on income BUT, remember, our plan is
a buyer pay. Your employer is paying you for your services therefore the employer
would be responsible for collecting and sending to the State the 1% tax on
the services they bought…your services. Keep in mind this plan will generate
a MAJOR savings for your employer. They will no longer need to collect or
complete the forms 940, 941, UCT6 and the boatload of other mandatory forms/filings.
The employer will no longer be required to match the Social Security “contribution.”
That alone will save them 7.5 %!
9. If you get rid of the property
tax how will public schools get funded?
A: Easy…and they’ll have a lot more available funds. All a school
district need do is send their budget request to the State comptrollers office…and
the State will cut them a check.
10. What about parking meters,
aren’t they just another tax?
A: Tough call, almost lawyer delight. This is one of the situations that,
if the consumption tax is implemented, will have to be decided by the courts.
When you feed a parking meter are you buying something (space/time) or is
it a tax? Municipal governments install parking meters but they are charging
you a fee to use space that you’ve already purchased via your fuel tax.
Is this fair? I say parking meters are just another tax and must go…but
our lawyers say the opposite, you’re paying a user fee. The courts will
have to decide this.
11. If you get rid of all these
local taxes how are municipal governments supposed to keep running?
A: See response to #9 above. Worth mentioning, not long ago I knew a candidate
who was running for the office of State Comptroller. Making a long story short
he was adamantly against the concept of consumption based tax payable to the
State. Two hours later his lights went on. “What an ingenious idea…do
you have any idea how much tax money can be saved by having a central clearing
house for governmental budgets? If this were the law of the land and if local
governments had to submit budget requests to a central clearinghouse we could,
easily, check for duplication, areas where they’re going to spend money
that is not their jurisdiction and a multitude of other missteps. This plan
has the potential of saving taxpayers billions and billions of dollars in
wasted or inappropriate spending!!”
12. If you have a question…send
it to us.
WHAT YOU CAN DO TO HELP
Get involved! Spread the word! Inform others about this site! Download or
copy any/all the information you wish! Think we’re wrong? Tell us why
but be prepared to substantiate your opinions.
Become a member! The Taxpayers Association
is a 501-C-3, tax-deductible entity. All your contributions are tax deductible
as allowed by law. Does seem somewhat ironic…here we are trying to eliminate
the tax code yet we’re a tax-deductible organization. Still don’t
think the tax code is screwy?