One-Percent Revolution: National We-Wonít-Pay Day
by Bill Sardi: Zimbabweans
Figure Out Central Bank Fraud Ahead of Americans
What if the
1-percent holdback their quarterly tax payments?
God, I can
hear it now, how dare the rich do a thing like that! Yes, Iím talking
about a planned date to holdback on quarterly tax payments to the
Internal Revenue Service.
It is easy
to see that America has an onerous tax system where the masses vote
themselves pay increases from the classes. There can never be meaningful
tax reform or tax revolt when only a small number of out-voted wage
earners pay most of the taxes. The Federal government gets away
with all of its over-spending shenanigans by pitting the poor against
This is not
to condone the ill-gotten financial wealth that Wall Street types
have generated by churning fast electronic trades on the stock market,
or profits gained from insider trading, or the executive bonuses
for reckless bankers while home owners who did business with these
banksters were thrown out on the street.
But the wealthy
have one advantage Ė their taxes arenít withheld from their paychecks.
They pay quarterly estimated taxes.
Now if the
top 1-percent (who pay about 37% of the Federal taxes), or maybe
the top 5-percent (about 58% of collected Federal taxes), can agree
upon a course of action to holdback on quarterly tax payments until
proper reforms are passed to reign in spending, what would result?
certainly be calls to jail them all. Great, now weíd have the largest
tax payers sidelined and not earning income. That would further
throw the economy into a collapse.
really pay more taxes than their bosses?
I didnít start this war, the Executive branch of the Federal government
did by spending recklessly and then pointing a misdirected finger
at the wealthy.
The chief executive
errantly says secretaries shouldnít incur a higher tax rate than
their bosses. Itís a false argument. The wealthy are putting their
money at risk to build the American economy and pay lower tax rates
(called capital gains) which is an encouragement to invest to help
America grow its economy. Go ahead, fix a broken economy by over-taxing
when the real problem is over-spending. This strategy will surely
against the Buffet tax, named after billionaire Warren Buffet, the
billionaire investor who has complained that rich people like him
pay a smaller share of their income in federal taxes than middle-class
taxpayers. The President has taken up this maligned issue to again
pit the masses against the classes. But a distinction should be
made between tax avoiders and tax evaders. The wealthy already pay
more than their fair share.
vs. public capital
Why is the
White House denigrating private capital? Who says money in the hands
of the Federal government is better used than by private enterprise?
A worker hired
in the private economy is not on the back of taxpayers. But a worker
hired by government will be forever on the back of American wage
And why do
we assume the Federal government, with all of its largesse and influence,
can launch a new venture with any greater success than private enterprise?
Look at the
Federal governmentís recent track record. The Federal government
backed Chevy Volt electric cars, and only six-thousand have been
sold even with a huge federal tax credit. Or how about new government-underwritten
ventures like the failed Solyndra solar panel company backed by
a $528 million government loan or the freshly bankrupt $2 billion
solar energy plant that was supposed to be built in the California
desert. Crony capitalism doesnít work.
are repudiating their debts
canít stomach the rich withholding their tax payments while babies
from poor families need milk and kids need their teeth fixed. But
let me tell you many Americans have already started a "We Wonít
and economic commentator Gary North has said Americans wonít pass
on their debt to the next generation. And he appears to be right.
Americans are simply repudiating their personal debts.
Almost a trillion
dollars of federally-back student loans are simply not being paid
down. An estimated 4 million home owners are not
making their monthly mortgage payments and are still living
in their homes. Given the choice between making a mortgage payment
or a car payment, Americans are choosing
to avoid repossession of their car they need to get to their
job preferentially over going into foreclosure on their home.
The banks made
these imprudent loans and they should be held accountable. The banks
will fail if Americans donít pay on their loans and that is the
proper course. Bankers will only become more prudent if they fail
instead of pushing their sins off on the public. We should as a
society put a stop to privatized profits and socialized losses.
the wealthy foot the entire bill to help bear the unfair load for
more and more public welfare when so many others are punting on
paying their debts? Only a taxpayer revolt at the top will stand
a chance at reforming a derelict government. If the 1.4 million
Americans who represent the 1% who pay most of the taxes can agree
on any meaningful reforms, the Federal government is toast.
the American dream
to the topic of wealth and taxes, if there are no wealthy Americans,
what is the use of living in this society and dreaming one day you
can make it to the top if you canít become a millionaire?
earn investment income which is taxed at 15 percent capita gains
rate rather than the top-bracket 35% tax rate. In this manner wealthy
people are encouraged to invest their money to grow the economy
by a lower tax rate on capital gains. Otherwise they can hold their
money in stocks and never take profit that will generate taxes.
In other words, lower capital gains taxes keep wealthy people from
sitting on their money.
has proposed that people earning at least $1 million annually -
whether in salary or investments - should pay at least 30 percent
of their income in taxes. This presumes the nationís debt crisis
is caused by free-loader millionaires who are tax evaders rather
than tax avoiders.
economy collapsed years ago
author of Endgame, says the problem is over-spending, not under-taxing.
Mauldin says the private economy stopped growing over a decade ago,
according to Mauldin, and then the Federal government stepped in
and began to conjure up phony wars, expand the military, create
more government jobs, and put more people on the backs of the wealthy.
Continue in this direction and America ends up exactly where Greece
tax avoiders from tax evaders
It was judge
Learned Hand, U.S. Court of Appeals 2nd Circuit (1872-1961)
in Gregory v. Helvering 69 F.2d 809, 810 (2d Cir. 1934, affíd 293
U.S. 465, 55 S. Ct. 266, 79 L. Ed. 596 (1935) who said:
may arrange his affairs so that his taxes shall be as low as possible;
he is not bound to choose that pattern which best pays the treasury.
There is not even a patriotic duty to increase one's taxes. Over
and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone
does it, rich and poor alike and all do right, for nobody owes
any public duty to pay more than the law demands."
against the one-percent is misdirected and divides the nation, which
insulates the government from public pressure. Division is how government
keeps the pressure off of itself Ė rich vs. poor, black vs. white,
immigrant vs. non-immigrant, union vs. non-union worker.
government can even violate the Constitution with impunity because
it picks off dissenters one by one, breaching the rights of one,
not all. It was Martin Niemoller (1892-1984), born in Lippstadt,
Germany, who wrote the following:
they came first for the Communists, And I didn't speak up because
I wasn't a Communist;
they came for the trade unionists, And I didn't speak up because
I wasn't a trade unionist;
they came for the Jews, And I didn't speak up because I wasn't
. . . they came for me . . . And by that time there was no one
left to speak up."
cannot distinguish tax evasion from tax avoidance. Pay your fair
share of taxes, just like all the rest of us! That is the prevalent
sentiment. The fact is, nearly half of all Americans donít pay Federal
income taxes, but they think they do because FICA (Federal Insurance
Contributions Act) deducts for Medicare and Social Security.
a mark of patriotism?
are asked if they know of any specific law which requires citizens
to pay income taxes, most Americans look perplexed as to why a law
would be needed in the first place. What is often heard is that
every good American citizen should pay their taxes regardless of
whether there is a law or not. The fact is, nearly have of American
workers pay no Federal income tax and will collect over the lifetime
more benefits from Social Security and Medicare than they contributed.
drastically changed from its earliest beginning. America started
out as a tax protest -- the Boston Tea Party being the best specific
example. Today, protest taxes and you are considered unpatriotic!
White House is demonizing wealthy individuals who donít pay their
fair share of taxes while its own Treasury
Secretary failed to file tax forms for three years and was paid
a tax allowance by his employer for taxes he didnít pay. What a
two-faced elitist government.
taxes should be abolished
realize the Federal government receives revenues for no designated
purpose, so it immediately pads budgets and dreams up spending programs
that hide any surpluses that should be returned to the people in
lower tax rates.
In North Dakota
is there is a movement now to eradicate
State property taxes. If this law passes, all new spending must
be accompanied by a tax approved by the voters for a specific purpose
rather than collecting surplus dollars and then finding ways to
spend them as if government has a right to the money. In California
during the height of the real estate bubble, the State was collecting
such huge amounts of money and spending it so fast that it was borrowing
against future anticipated property tax revenues. The State wanted
to make sure no surpluses ever accumulated. Only Governor Ronald
Reagan ever gave California tax payers a refund.
realize they are being gamed and huge surpluses could be realized
if every tax was designated for a specific purpose rather than giving
government an open checkbook to spend what revenues are collected.
The IRS' Taxpayer
Ombudsman says the U.S. tax code has become so onerous, so complex,
it costs Americans about $193 billion a year to fill out tax forms,
and if improperly filed, the consequences could be forfeiture of
property or garnishment of wages. As recently as the year 2000 almost
half of U.S. wage earners filled out their own tax forms. Today
80% of tax filers must rely upon assistance in the form of software
or a tax consultant. This means the tax code is beyond the comprehension
of most citizens. Has the tax code been intentionally complication-ized
as a favor to cronies who own tax filing companies that make political
donations? (You can locate the political donations made by a well-known
tax preparer here.)
7.6 billion hours a year are spent filling out tax forms for the
IRS; and that figure does not even include millions of additional
hours that taxpayers must spend when they are required to respond
to an IRS notice or an audit (7.6 billion hours consume the equivalent
of 3.8 million full-time workers).
The U.S. tax
code is so complex that almost any tax filer could be found in violation
of some rule and be subject to fines and penalties.
take guns or street rebellion to reform America. It just takes the
will to not pay. If Americans want conservative bankers who wonít
lend out their banked money recklessly then they are going to have
to stand up the banksters who threatened to let the whole economy
collapse in 2008 if the Federal government didnít bail them out.
The bankers were bailed out while the people lost their homes and
their jobs. Itís time to make the bankers pay, not shift their dereliction
on us all.
It was Winston
Churchill who once said: "The inherent vice of capitalism is
the unequal sharing of the blessings. The inherent blessing
of socialism is the equal sharing of misery."
on how to play the popular board game Monopoly includes these rules
Parker Brothers): "The Bank collects all taxes, fines,
loans and interest, and the price of
which it sells and auctions. The Bank never Ďgoes broke.í
If the Bank runs out of money, the Banker may issue as much more
as may be needed by writing on any ordinary
paper." Isnít that the game American bankers are playing. Our
paper money is becoming worthless play money. In this game of "bankers
take all" itís time to revolt. Donít pay.
him mail] is a frequent writer on health and political
topics. His health writings can be found at www.naturalhealthlibrarian.com.
latest book is Downsizing
© 2012 Bill Sardi Word of Knowledge Agency, San Dimas, California.
This article has been written exclusively for www.LewRockwell.com
and other parties who wish to refer to it should link rather than
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