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Freedom from the Income Tax
by Harry Browne
April 15, 2003
Someday, I hope, April 15th will no longer be Tax Day (the day your
income tax return must be filed) but instead will be known as Freedom Day
a day to remember the huge, expensive,
intrusive, and meddling government that was once was and that we should be
on guard against forever.
That can come only after we repeal the income tax and reduce the federal
government to a size that can subsist on just the tariffs and excise taxes
already being collected. No flat tax, no "fair" tax, no replacement tax of
any kind because government has been
made so small an income tax is no longer needed to finance it.
Impossible?
Not at all.
A Little History
Many people aren't aware that America
conceived in liberty in 1776 didn't
have a permanent income tax until 1913. In fact, the Constitution of the
United States prohibited an income tax.
For over a century, the U.S. government survived quite well without an
income tax. It operated a small, constitutional government on the revenue
from tariffs and excise taxes.
Tariffs are taxes imposed upon imported products, and excise taxes are
imposed at the manufacturing level on domestic products. Because those taxes
affect the prices of products, they were self-limiting. That is, the taxes
couldn't produce unlimited revenue to the government.
If a tax was raised too far, the product would be priced out of the reach
of the consumer, sales would fall, and the tax revenues would fall.
Thus, relying on tariffs and excise taxes, the U.S. government was able
to raise only so much money and no more. The same was true of state and
local governments: there were built-in limits to how much they could tax.
As a result, in 1913 federal, state, and local governments combined took
in taxes only 8% of the national income.
But that changed quickly with the passage of the 16th Amendment,
authorizing an income tax. In contrast to tariffs and excise taxes,
income-tax rates can be raised upward and upward and upward, since most
people can't choose to stop working in order to avoid the tax.
That meant the federal government now had virtually unlimited resources
to do whatever the politicians wanted. Respect for the Constitution
disappeared almost overnight. The U.S. government plunged the nation into
World War I, a strictly European war, something it couldn't have done
without the income tax to finance the war effort. (The top rate quickly
zoomed upward to 77% from 7% where it had been set in 1913.)
Today governments at all levels take 47% of the national income. That
means you work nearly half your life to support the welfare state. And now
there's no topic on which the politicians refuse to consider legislation.
Your entire life is fair game for them to enact rules.
Benefits
Imagine what would happen if we repealed all forms of federal income tax
including the personal income tax, the
corporate income tax, Social Security, the estate tax, and the gift tax. A
world of benefits would quickly come in the wake of repealing these taxes.
The first benefit is the most obvious: all the money you're paying in
income taxes will be yours to spend,
to save, to give away as you see fit, not as the politicians think is
best for you, best for the nation, and
most of all best for them.
You are the one who gets up every day to go to work. You're the one who
puts in long hours. You're the one who makes your job what it is.
What have the politicians done to earn that money?
Absolutely nothing.
What claim should they have on your earnings?
Absolutely none.
When we repeal the income tax, all that you pay now in income and Social
Security taxes will be yours at last
to do with as you see fit.
If yours is the average American family, that means over 10,000
dollars a year that's been going to the politicians that will stay in
your hands.
Every dollar you earn will be yours
to spend, to save, to give away as you see fit
not as the politicians think best for
you, for the nation, or for themselves.
They won't have a claim on a single dollar you earn.
So what will you do with that money when they no longer take it away from
you?
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Will you put your children in private schools
where you could get exactly the
kind of education you believe best for them? No more wondering why
more time is spent learning to be a good citizen than learning about
history, geography, reading, riting, and 'rithmetic. No more fighting
the Board of Education to try to get the curriculum changed. You pick
the school that fits your idea of what a school should be.
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Will you start that business you've always
dreamed of?
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Will you move into a better neighborhood, take
your family on a better vacation, arrange a much more comfortable and
much more secure retirement?
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Will you help your church or your favorite
cause or charity in a way you've never been able to do before?
What will you do with that money?
At last, it will all be yours and
the government will no longer have a claim on it.
Other Benefits
That in itself is reason enough to want to end the income tax. But here
are three additional benefits:
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There will be a similar increase in take-home pay for everyone you
do business with your customers
or your employer meaning that
people will have more money to spend on what you have to offer.
-
A similar increase in take-home pay will occur throughout America,
unleashing the biggest boost in prosperity that America has ever seen.
There will be a job for everyone who can work and charity for everyone
who can't.
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Your life will be your own again: an end to government snooping
into your finances, an end to keeping books for the IRS, an end to
fear of an audit, an end to rearranging your financial life to
minimize your tax burden.
And there's a fifth benefit that's probably the greatest of all: No
longer will the federal government have the resources to run our lives. It
will be unable to continue ruining what was once the best health-care system
the world has ever known, destroying American education, making millions of
people dependent on welfare, subsidizing foreign dictators and meddling in
explosive foreign affairs.
Our Chance
Repealing the income tax is the issue on which we can rally Americans to
cut government truly to the bone the
bone being the functions authorized in the Constitution. Without the
resources to meddle in our lives, the government will have to withdraw to
the limits of the Constitution.
There isn't space here to cover all the ramifications, objections, and
possibilities surrounding this subject, but the
American Liberty
Foundation is launching a project to acquaint the American people with
the benefits to come from returning to constitutional government through the
total and immediate repeal of the income tax.
Reports and programs will be issued dealing with ways that government
functions can be better handled outside the government, how downsizing the
federal government will lead to downsizing state and local governments (and
possibly even foreign governments!), how even those who don't pay income tax
today can benefit from the repeal and in fact be induced to help us.
This is a fascinating subject because it is the single subject that
automatically encompasses an end to practically every other ill the federal
government has inflicted upon us.
And the rewards it offers provide an opportunity to reach all Americans
with a message of a better life
leading perhaps to April 15, 2010, when we celebrate Freedom Day instead of
Tax Day.
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Harry Browne was the Libertarian Party
presidential candidate in 1996 and 2000, and is now the Director of Public
Policy for the American
Liberty Foundation. You can read more of his articles at
www.HarryBrowne.org.
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