subject: Are We Taxed Enough Already? [print this page] Are We Taxed Enough Already? Are We Taxed Enough Already?
I have heard it stated up to 51 % of our citizens do not pay Federal Taxes. This is not true. The only people who do not pay Federal taxes are citizens who have no income, own no property and buy no items from any business. If you work and have no Federal Tax withheld because you do not have enough earned income to require you to file or pay Federal Taxes - You still pay Federal Taxes. When you advocate an increase in the amount of Federal tax a big business and the rich pay - you are also advocating a higher tax on yourself.
When you buy products, food or services Federal taxes are part of the costs you pay. The Federal Taxes a business pays is an expense the customer pays when a product is purchased. The next time you purchase food think about the tax a Farmer pays and adds to the product cost, the tax a warehouse producer pays and adds to the product cost, the tax a manufacturer pays and adds to the product cost and finally how much less would you spend without the unseen taxes these business have to pay and pass on. Food for thought Where does a business get its money to pay its taxes?
Social Security contributions per two different Supreme Court Decisions have held the contributions are Federal Taxes and the Federal Government can spend the monies as it sees fit. If the Federal Government wants to give you a Social Security Pension it can. If the Federal Government wants to not give you a Social Security Pension that is OK Too. Your only recourse is to vote for someone who will vote to give you a pension.
Unfunded Federal Mandates require state and local governments to perform services or actions that are not paid for in full by the Federal Government. The funding comes from the general revenues raised by the state government. This means your state and local taxes would be lower if there were no unfunded federal mandates. An example of this is a few years back some states sued the tobacco companies for the extra costs the states incurred paying for the high costs of cancers caused by tobacco smoking. The Federal Legislation that created Medicare/Medicaid required the states to cover the cancer costs. Now if you smoke - you have to pay twice one time for the costs of the lawsuit and the second time for any new taxes on tobacco. The citizens will have to pay the additional monies through state taxes needed to cover cancers that the lawsuit and new taxes do not cover.
Unfunded Federal Mandates even reach into your local taxes. The school system funding is an area of local/county responsibility. The Department of Education forces requirements on school systems to meet their standards. The local school system may not want the standard but to get the federal funding about 5% to 10% of the school budget and accreditation they have to do as told. Over time this has caused the sales taxes, personal property taxes and real estate taxes (usually considered local taxes) you pay to increase to meet the added costs that a local government would not have wanted or added.
Don't Think You are Not Taxed Enough Already? Then add the Federal taxes you pay on your land line phone bill, cell phone, cable bill, gasoline and let us not forget alcohol. The Crown Jewel of the Federal Government's Taxation Armory is Inflation. Inflation makes your wages go up so you are put in a higher tax bracket without the Federal Government having to do anything. Your purchasing power will go down because the items you purchase will have to go up in price to accommodate the new taxes and wages. Finally - The money the Federal Government borrowed (Saving Bonds, Treasury Notes, Agency Bonds, etc.) will be paid back with cheaper dollars. In 1969 the nation's money was on a gold standard of $32.00 per ounce Today an ounce of gold cost over $1350.00 and we are not on a gold standard. This is why the Federal Government is afraid of deflation It will give money back some of the value it lost through inflation.
I believe if you think about how we got to where we are at now - you will have to admit all our citizens are in the same boat. We are over taxed and over regulated. The 16th Amendment to the Constitution was passed after a Supreme Court Decision called the direct taxation of the people's income legislation by the Federal Government unconstitutional. The reason given was the founding fathers fought a Revolutionary War for Independence from England to keep direct taxation of the people out of the hands of the central government.
Amendment 16 ratified 2/3/1913 says:
"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
You should notice there is no limit as to how much of your income the Federal Government can take. This means they can take it all and decide what to give you back. If you read the thoughts and writing at the time this was being passed and ratified it was stated the tax would never be more than 3% of anyone's income and only the Rich would pay. If you Pay Social Security Taxes, State Taxes, Sales Taxes, Personal Property Taxes and Real Estate Taxes go look in the mirror and pat yourself on the back. You have made the big time You are now part of the Rich class as stated by the thoughts and writing before the Amendment 16 was ratified.
