ARE TAXES LEGAL?

• U.S. states’ sales taxes apply on average only to a third of the potential tax base.

• The U.S. has a partial territorial system and does not exempt foreign capital gains income.

• The real property tax burden is among the highest in the OECD.

 

HOW ARE TAXES ANY DIFFERENT FROM RANSOM?

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The first income tax to be charged in the U.S. was to pay for the Civil War. And when the war ended, this tax was repealed. But like how a hungry shark could smell blood from a great distance, the Federal government got a taste for the revenue that income tax could raise.

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America has always been a promoter of a free market and believes that competition is good for the economy. Then, why the greatest nation is posing fixed and mandatory taxes on all of its residents?

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1.) The burden falls on the poor.

 

Corporate taxes have been reduced over the past several years, but on the other hand, taxes on the poor have either stagnated or steadily increased, which proves the regressive nature of the tax system around the world.

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2.) Kills small business

 

Tax competition only favors the rich and big corporations. The big corporations exploit legal loopholes to get away by paying a lower effective tax rate. Hence income tax burden ends up being hammered on the small businesses limiting their potential and lowering their motivation.

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The lower tax rate for the big corporations also allows them to offer their products and services at a lower rate, which helps gain even more market. The same technique is used by companies like Wal-Mart and Amazon, who gained an unparalleled advantage over the smaller firms.

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3.) Rich gets richer

 

Tax competition exacerbates the wealth gap between rich and poor, widening the wealth gap. And this is the exact opposite of what income tax intends to do.

 

ARGUMENTS AGAINST INCOME TAX

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During the golden days, "British Raj" or Colonial America started collecting taxes from the residents in order to maintain the army, weapons, and arms. And after regaining independence and hundreds of years of the technological and economic environment, how different or "progressed" are we on the tax front? Forcibly imposing a tax on the citizens on account of living on their souls.

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Over time, there have been many groups and individuals posing arguments against income tax. But the strength of corrupt officials and brainwashed residents have failed to recognize them. Some of the critical arguments are:

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1.) Income tax discourages saving, investment, and production

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Taking away an individual's disposable income is directly proportional to their decreased purchasing power.

Decreasing Purchasing power has a trickle-down effect on the whole economy as less purchasing power leads to fewer sales and growth (fall in demand) for the corporation, which leads to cutting down employees or fewer employment opportunities.

This vicious cycle continues with no end, ultimately hurting the poor and disadvantaged section of society.

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2.) Imposing taxes is the root cause of illegal activities

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Having tax liability births activities like tax evasion, illegal smuggling, etc.

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3.) It discourages people from working

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as their hard-earned money will be ripped off them by the government

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4.) Encourages idleness

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Subsequently, people will realize that it is better to encash the unemployed benefits over working hard.

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5.) United States citizens are the victim of "government-sanctioned extortion" everywhere they go!

 

American citizens have to file U.S. federal tax returns and pay U.S. taxes on their worldwide income, no matter where they live at that time.

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6.) Compensation is not income.

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Working-class, daily wage earners, employees are compensated for their time, skills, and expertise; hence they do not make a profit. Thus, we can argue that this exchange of skills and time for money isn't income.

America is violating its constitution, which, on the first hand, was made to protect its citizens.

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7.) Violation of the 5th amendment

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The government is forcibly collecting part of hard-earned incomes from individuals, i.e., without the due process of law, and therefore it is unconstitutional.

 

5th amendment states that no person shall be “deprived of life, liberty, or property, without due process of law."

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8. Violation of the 13th Amendment

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The 13th Amendment outlawed slavery in the United States, but it looks like the U.S. is trespassing its constitution by forcibly collecting taxes from its residents.