The final act of the Liberal majority on the House Methods Committee was to make community several years of Donald Trump’s tax returns, which the Committee obtained after a prolonged legal battle. The tax returns confirmed that, despite being one of the richest people in America, Donald Trump paid very little in federal tax. In fact , in at least one year he paid under a thousand dollars.
Trump’s success in lessening his tax liability with out ever being audited is definitely surprising only to those who think IRS audits are generally used to catch rich “ tax cheats. ” Based on data released by the Syracuse University Transactional Records Clearinghouse, in 2022 lower-income people were five and fifty percent times more likely than millionaires and billionaires to be audited! This is because low-income taxpayers are unable to afford to hire top-notch tax attorneys and accountants to help fight the IRS, so they are more likely to give in to the agency’s demands.
Despite claims of the Biden Administration and its Congressional allies, the $80 million in extra funds provided to the company as a part of the misnamed “ Inflation Reduction Act” will likely increase the tax agency’s targeting of low- and middle-income Americans.
Proponents of a flat tax or national sales tax believe such a system would assure millionaires and billionaires paid their “ fair share” of taxes. Saying we must all pay our “ fair share” of taxes assumes we have a meaning obligation to the government that can only be fulfilled simply by turning over as much of the income as our alleged “ public servants” requirement. This is not the case. Individuals have a moral duty to support their loved ones, and to support private charities if they wish. They do not have a moral duty to support the government.
Tax change proponents also complain how the current tax code includes too many loopholes that trigger economic distortions and inefficiencies. It is true that the current tax system promotes ineffectiveness, but this is caused by the tax itself, not the loopholes. Conversely, loopholes actually promote economic efficiency by giving people the ability to spend more of their money the way they prefer, rather than enabling politicians to spend it. Because economist Thomas DiLorenzo put it, “ private individuals consistently spend their own money more proficiently than government bureaucrats perform. ”
Some have expressed concerns the use of President Trump’s taxes records as part of the Democrat and Deep State effort in order to discredit him sets an unhealthy precedent that will lead to improved use of tax information like a political weapon. The sad fact is that ever since its creation, political figures have used the IRS like a tool for punishing political opponents. As an IRS agent told the head of conservative organization who was being audited after calling for the impeachment of then-President Bill Clinton, “ What do you expect once you target the President? ”
The major problem with the income tax, and the cause it must be eliminated, not merely “ reformed, ” is that it will be rooted in the idea that the federal government has first claim on this income. This idea is definitely incompatible with a free culture. Furthermore, the income tax must also be repealed because the drive of the IRS, along with the scams of the Federal Reserve, is one of the two foundations of the welfare-warfare state that erodes our freedom and prosperity. The only way to prevent 1984 is to repeal 1913.
This informative article first appeared at RonPaulInstitute. org .