The History of Taxation

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Taxation Explained: Just the Basics Here

The American revolutionary slogan "no taxation without representation" implied this: rulers tax citizens, and citizens demand accountability from their rulers as the other part of this bargain.

Taxes are a fact of life for Americans. If you don't pay, you can get in a lot of trouble with the I.R.S..The exception exists if you are nominated Secretary of the Treasury (Timothy Geitner), nominated HHS Secretary (Tom Daschle), or OMB Budget Oversighter (Nancy Killefer)! I hope to explain the nefarious "small" taxes that you encounter everyday...the ones that you don't think about, but add up over time. Everyone knows the Federal Income Tax is coming (April 15th), it's big and it hurts, but it is the small taxes that leave a thousand small cuts. They can get infected and lead to an unhealthy bank balance.

Cost of the War in Iraq 

Famous Quotes on Taxes 

BEWARE--Not much positivity here...

Mark Twain-
"The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin".

Will Rogers-
"It is a good thing that we do not get as much government as we pay for".

James Madison-
"I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents..."

H. L. Mencken-
"Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages".

Dr. Laurence J. Peter-
"America is a land of taxation that was founded to avoid taxation".

John Maynard Keynes-
"The avoidance of taxes is the only intellectual pursuit that carries any reward".

Winston Churchill-
"There is no such thing as a good tax".

Ronald Reagan-
"The taxpayer: that's someone who works for the federal government, but doesn't have to take a civil service examination".

Thomas Jefferson-
"The same prudence which in private life would forbid our paying our own money for unexplained projects, forbids it in the dispensation of the public monies".

Thomas Sowell-
"If you have been voting for politicians who promise to give you goodies at someone else's expense, then you have no right to complain when they take your money and give it to someone else, including themselves".

Benjamin Franklin-
"Our Constitution is in actual operation; everything appears to promise that it will last; but in this world nothing is certain but death and taxes."

Taxes-Defined 

Let's define what a Tax is:
A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (for example, secessionist movements or revolutionary movements).Source: wikipedia

Let's dig a little deeper:
A tax "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name." Source: wikipedia

Keep reading for the types of taxes...

The Many Types of Taxes 

Remember Taxes Can Be Proportional, Regressive, or Progressive!!

Proportional Taxes= the effective tax rate is fixed as the amount to which the rate is applied increases

Regressive Taxes=the effective tax rate decreases as the amount to which the rate is applied increases

Progressive=a tax imposed so that the effective tax rate increases as the amount to which the rate is applied increases
  • Ad Valorem-Sales taxes, tariffs, property taxes, inheritance taxes, and value added taxes are different types of the ad valorem tax.
  • Natural Resources ConsumptionTax-GreenHouse gas tax (Carbon tax), "sulfuric tax", and others. A recently proposed environment affecting tax is the The Agricultural Emissions Research Levy (commonly described as a "flatulence tax" or "fart tax"). It was a tax proposed in New Zealand in 2003 to assist with compliance with the Kyoto Protocol. The tax would target the release of methane by farm animals, which in New Zealand account for over 50% of the greenhouse gas emissions
  • Capital Gains Tax-A capital gains tax is the tax levied on the profit released upon the sale of a capital asset
  • Corporate Tax-a direct tax levied by various jurisdictions on the profits made by companies or associations and often includes capital gains of a company.
  • Excise Taxes-are based on the quantity, not the value, of product purchased. For example, in the United States, the Federal government imposes an excise tax of 18.4 cents per U.S. gallon (4.86¢/L) of gasoline, while state governments levy an additional 8 to 28 cents per U.S. gallon. Tobacco, alcohol, pornography, and other "sins" are an example of this kind of tax.
  • Income Tax-An income tax is a tax levied on the financial income of persons, corporations, or other legal entities. Income taxation can be progressive, proportional, or regressive.
  • Inheritance Tax- Also known as the "Death" tax...In United States tax law, there is a distinction between an estate tax and an inheritance tax: the former taxes the personal representatives of the deceased, while the latter taxes the beneficiaries of the estate.
  • Poll Tax-is a tax that levies a set amount per individual. It is example of the concept of fixed tax. One of the earliest taxes mentioned in the Bible of a half-shekel per annum from each adult Jew (Ex. 30:11-16) was a form of poll tax. It is regressive because it would affect lower-income persons much more than wealthy individuals.
  • Property Tax-A property tax is usually levied on the value of property owned. There are three kinds of property taxes: land, improvements to land (immovable man-made things, e.g. buildings) and personal property (movable things, vehicles, boats, etc). Real estate or realty is the combination of land and improvements to land.
  • Retirement Tax- A.K.A. the Payroll tax-Some countries with social security systems, which provide income to retired workers, fund those systems with specific dedicated taxes. FICA, is a huge tax that is regressive at first, while a worker is young, but pays out later. This tax is very high, a big percentage per paycheck of the American worker.
  • SalesTax-Sales taxes are levied when a commodity is sold to its final consumer. Many states in the US collect higher sales taxes to offset no state income tax: Alaska, Tennessee, Florida, Nevada, South Dakota, Texas,Washington, and Wyoming are the ones that use this offset.
  • Tariffs-a charge for the movement of goods through a political border. Tariffs discourage trade, and they may be used by governments to protect domestic industries.
  • Toll-a tax or fee charged to travel via a road, bridge, tunnel or other route.
  • Transfer Tax-In the United States, the transfer tax is often charged by the state or local government and (in the case of real property transfers) can be tied to the recording of the deed or other transfer documents.
  • Value Added Tax / Goods and Services Tax-applies the equivalent of a sales tax to every operation that creates value. To give an example, sheet steel is imported by a machine manufacturer. That manufacturer will pay the VAT on the purchase price, remitting that amount to the government. The manufacturer will then transform the steel into a machine, selling the machine for a higher price to a wholesale distributor.
  • Wealth (net worth) Tax-exact a tax on net worth (assets minus liabilities), as a percentage of the net worth, or a percentage of the net worth exceeding a certain level.

Powerful, Wealthy People Who Don't Pay Their Taxes 

These are your fearless politicians, movie stars, and musicians, etc...

First up is Mr. (former Senator) Tom Daschle

On January 30, 2009, while his nomination for the position of HHS Secretary was still awaiting Senate confirmation, tax issues came to light involving income and the use of a limousine and chauffeur that Daschle failed to properly disclose on his income-tax statements for the years 2005 through 2007, as well as charitable contributions he improperly claimed as deductions. Daschle reportedly paid back taxes and interest in the amount of $140,167 as a result.

The former Senator had an "excuse" of course: This morning Daschle released a letter of apology for his tax lapses, the Washington Post reports. "I am deeply embarrassed and disappointed by the errors that required me to amend my tax returns," he wrote to members of the Senate Finance Committee.

Next up...Timothy Geitner 

Ahhhh...Mr. Geitner, now head of the I.R.S., I wonder if he will feel the same way when hardworking Americans make a "honest" mistake on their tax filing????

This from MSNBC:

The ambivalence dogging lawmakers was reflected in the fact that a third of the chamber voted against Geithner, in large part because of his failure to pay all his taxes on income received from the International Monetary Fund in 2001 and in three subsequent years.

Ten Republicans overlooked that matter and voted for confirmation. One Republican, Sen. Arlen Specter of Pennsylvania, told reporters earlier in the day that he would vote yes, only to change his mind and vote no.

Three Democrats and one independent voted against Geithner's confirmation, including Sen. Robert C. Byrd, D-W.Va., the longest-serving senator in history.

"Had he not been nominated for treasury secretary, it's doubtful that he would have ever paid these taxes," Byrd said in a statement.

and Nancy Killefer... 

Source: Politico

Failure to pay taxes will apparently hit at least one of President Obama's appointees. Nancy Killefer, who was slated to be the White House's first chief performance officer, is withdrawing her nomination Tuesday, aides to President Obama say. Administration officials declined to immediately say why Killefer was pulling out, but it's almost certainly related to tax troubles. The former McKinsey consultant faced a nearly $950 lien in 2005 on her Washington, D.C. home for not paying taxes on household help. The lien was disclosed when Killefer was appointed in early January to a new OMB position aimed at streamlining government and rooting out waste and inefficiency.

My Comment: Small potatoes next to Daschle and Geitner but they have something else on her besides taxes....mmmm maybe like she beats her dog or something.

Why Should I Pay Taxes? I am an Elite! 

Links to some insider information on who is getting over on Uncle Sam.
Don't Wanna Pay Taxes? Run For Congress! | Support Your Local Gunfighter
So let's see: Charlie Rangel doesn't have to pay his taxes, and new Treasury Secretary (and head of the IRS) Timothy Geithner doesn't have to pay his...
Another Obama Nominee has Tax issues
Why can't people just pay their taxes?

Economist's Websites 

Information on their policy views and thoughts on Economics (Source:Wikipedia)

Xenophon
Xenophon the Athenian was born 431 B.C. He was a pupil of Socrates. He marched with the Spartans, and was exiled from Athens. Sparta gave him land and property in Scillus, where he lived for many years before having to move once more, to settle in Corinth. He died in 354 B.C.
Richard Cantillon (1680-1734)
Cantillon was perhaps the first to define long-run equilibrium as the balance of flows of income, thus setting the foundations both for Physiocracy as well as Classical Political Economy. Cantillon's system was clear and simple and absolutely path-breaking. He developed a two-sector general equilibrium system from which he obtained a theory of price (determined by costs of production) and a theory of output (determined by factor inputs and technology). His work is quoted by Adam Smith in his Wealth of Nations. According to Nobel laureate Friedrich Hayek, Jevons was scarcely exaggerating when he entitled Cantillon's work as the "Cradle of Political Economy".
David Ricardo
David Ricardo (18 April 1772 - 11 September 1823) was a political economist, often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. He was also a member of Parliament, businessman, financier and speculator, who amassed a considerable personal fortune. Perhaps the most important of his contributions was the theory of comparative advantage, a fundamental argument in favor of free trade among countries and of specialization among individuals. Ricardo argued that there is mutual benefit from trade (or exchange) even if one party (e.g. resource-rich country, highly-skilled artisan) is more productive in every possible area than its trading counterpart (e.g. resource-poor country, unskilled laborer), as long as each concentrates on the activities where it has relative productivity advantage.
Adam Smith
Adam Smith (baptised 16 June 1723 - 17 July 1790 [OS: 5 June 1723 - 17 July 1790]) was a Scottish moral philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations. The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Adam Smith is widely cited as the father of modern economics.
Joseph Stiglitz
Stiglitz with his knowledge and analytical skills has pioneered a new branch of Economics termed as the "Economics of Information". In this theory he has applied the concept of 'information asymmetry', 'adverse selection', 'moral hazard' and explored the consequences at the market. These not only form an integral part of the theory but also have relevance in the analysis of polices.
Milton Friedman
The America-born Nobel Laureate economist and popular intellectual, Milton Friedman (1912-2006) was the exponent of the concepts of economic liberty and individual independence. Milton Friedman is known for his contributions in the spheres of macro and micro economics.
Karl Marx
The philosopher, social scientist, historian and revolutionary, Karl Marx, is without a doubt the most influential socialist thinker to emerge in the 19th century. Although he was largely ignored by scholars in his own lifetime, his social, economic and political ideas gained rapid acceptance in the socialist movement after his death in 1883. Until quite recently almost half the population of the world lived under regimes that claim to be Marxist.
Ludwig Von Mises
"Everyone carries a part of society on his shoulders," wrote Ludwig von Mises, "no one is relieved of his share of responsibility by others. And no one can find a safe way for himself if society is sweeping towards destruction. Therefore everyone, in his own interest, must thrust himself vigorously into the intellectual battle."
LiveLeak.com - PEOPLE LAUGHED IN 2007 ...
Peter Schiff---Dead on on th economy...wow..a must watch video

Vote on your "Favorite" Tax! 

I want to know which tax you like best.

Please vote for your taxation method...you have so many to choose from!

1

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Natural Resource Consumption tax

The "fart" tax...so farmers will have to more...1 point

2

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Smart Persons Tax

The smarter you are the higher your tax. Therefore more...1 point

3

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Sales Tax

You know--taxes on everything you buy...gotta love more...0 points

4

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Tolls on roads, bridges etc.

You have to have money for good roads and bridges. more...0 points

5

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Property Tax

Tax on your old car, your boat that you only use t more...0 points

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Social Security Tax

You have to love this one--when you get old you ca more...0 points

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Inheritance Tax

The dreaded Death tax...this is the one...0 points

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Federal Income Tax

Uncle Sam needs his payday!0 points

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Capital Gains Tax

A tax that "grows" on you as you accumul more...0 points

The Best Sellers in Books on Taxes-Amazon.com 

Comprehensive guides to Taxes!


J.K. Lasser's Your Income Tax 2009:
For Preparing Your 2008 Tax Return

J.K. Lasser's Your Income Tax 2009--the nation's all-time top-selling tax guide--is a proven, accessible resource with important strategies, useful recommendations and of course, all the latest tax law changes. With over 39 million copies sold, Your Income Tax 2009 is the #1 choice for taxpayers around the country.
South-Western Federal Taxation 2009: Individual Income Taxes (with TaxCut® Tax Preparation Software CD-ROM) (West's Federal Taxation: Individual Income Taxes)

South-Western Federal Taxation 2009: Individual Income Taxes (with TaxCut® Tax Preparation Software CD-ROM) (West's Federal Taxation: Individual Income Taxes)

by: William H. Hoffman, James E. Smith, Eugene Willis

Amazon Price: $170.12 (as of 12/15/2009)Buy Now
Used Price: $25.00

J.K. Lasser's Your Income Tax 2009--the nation's all-time top-selling tax guide--is a proven, accessible resource with important strategies, useful recommendations and of course, all the latest tax law changes. With over 39 million copies sold, Your Income Tax 2009 is the #1 choice for taxpayers around the country.

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The Burden of Taxes on the Average American Citizen 

Explanation of the Tax Burden

Imagine a $1 tax on every barrel of apples an apple farmer produces. If the apple farmer is able to pass the tax along to consumers of apples by raising the price $1, then consumers are bearing the entire burden of the tax.

In economics, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. Tax incidence is said to "fall" upon the group that, at the end of the day, bears the burden of the tax. The key concept is that the tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply. For example, a tax on apple farmers might actually be paid by owners of agricultural land or consumers of apples.

The theory of tax incidence has a number of practical results. For example, United States Social Security payroll taxes are paid half by the employee and half by the employer. However, economists think that the worker is bearing almost the entire burden of the tax because the employer passes the tax on in the form of lower wages. The tax incidence falls on the employee.International Burdens of the Corporate Income Tax

read the rest of the Wikipedia article

Tax Cheats On Film 

Lighten up your day by laughing at a tax cheat

Sean Hannity Show Clip with Timothy Geitner Testimony
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Jay Leno on Charlie Rangel-Congressman from New York 

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Political Scientist Howard Zinn on Taxes 

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Visit These Awesome Websites on Taxes 

The Real News Network - Home
The Real News Network is a non-profit news and documentary network focused on providing independent and uncompromising journalism. Our staff, in collaboration with courageous journalists around the globe, will investigate, report and debate stories on the critical issues of our times. We are member
Tax News for Home Taxes and Business Taxes - CNNMoney.com
CNN's informative section on taxes. I am not a huge fan of the Main Stream Media but this sight is very informative. Check it out!
The Official Tax Matters Web Site
From the small home-based business, to the larger more established company, we take a comprehensive approach to making your business stronger. Whether you are the new kid on the block or the experienced firm, we review your overall business procedures to improve your efficiency and bottom line.
Free Market News Network
FMNN itself is an independent media solution, an Internet-grown, free-market alternative to mainstream media complexes.
United States Tax News
United States Tax News Home Page. Daily news stories and full searchable archive of previous news stories. Sections on Federal Tax, State Tax, Tax-Efficient Companies, Tax Shelters, Tax Filing and Fringe Benefits.
TPC Tax Topics | Stimulus Report Card
Gives a grade on taxes in the Recovery Act of 2009
The Urban Institute | Tax plan of Obama
During the 2008 presidential campaign, the Tax Policy Center (TPC) used its state-of-the-art microsimulation model to produce the only comprehensive and objective analysis of the candidates' tax plans. The study revealed each plan's effects on economic growth, the national debt, and families' tax burdens. TPC's conclusions were cited hundreds of times in print and broadcast news, by numerous research and advocacy organizations, and by the candidates themselves. Jeffrey Rohaly, TPC's director of tax modeling, deciphers the tax model underpinning this and other TPC analyses.

News from the World...Economic Meltdown is Occurring Right Now 

It is only going to get worse... and that is not Chicken Little's opinion folks!

Revolt brews in counties - Sacramento News - Local and Breaking Sacramento News | Sacramento Bee
Counties in California say they've had enough - and they aren't going to take it anymore.In what amounts to a Boston Tea Party-style revolt against the state Capitol, they're threatening to withhold money.Los Angeles is considering such an option. And Colusa County supervisors said they authorized payment delays for February.
It' all about the jobs...
WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits surged in the latest week to the highest level in over 26 years, the Labor Department reported Thursday. The number of initial claims in the week ending January 31 rose 35,000 to 626,000. It's the highest level since the we
Parallels With the Great Depression
The parallels between the run-up to the Great Depression and today's economic downturn and recession are stunning. By Charles Scaliger.
CEOs, Bankers Used Corporate Credit Cards for Sex, Says New York Madam - Democratic Underground
CEOs, Bankers Used Corporate Credit Cards for Sex, Says New York Madam
HLPR ONLINE: Shipping Jobs Overseas: How the Tax Code Subsidizes Foreign Investment and How to Fix It
Shipping Jobs Overseas: How the Tax Code Subsidizes Foreign Investment and How to Fix It by James Kvaal: Income earned in tax havens and other low-tax countries should be fully taxed by the U.S. Such a system would greatly reduce incentives to invest overseas...

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Taxes 

Get Your Debate On...

Do you think taxes suck or are you a supporter of "Canada" style taxation???? Let me know...

Do you think Taxes suck????

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Yes, they do!

KentE says:

You Americans do not have to pay Income Tax. There is no law that states this and IRS admits in several places that it is a Voluntary Tax. It is a false appearance that you have to pay income tax. See my lens for more on how to break free from Government Servitude.
It may seem crazy that is it that simple - since we have been told all our lives that we have to pay tax. But what if we have been lied to all our lives?
Truth is, you as a Soverign Liveng Breathing Human being has more power in the eye of the law than you ever expect.
Find out more at my lens "A Survival Guide for Modern Society - Peaceful Rebellion".

Posted July 27, 2009

American says:

Jesus said we are to pay Ceasar what is Ceasars and therefore I believe taxes are necessary and we should pay them. But when we arrive to the situation we currently face where my tax dollars are used to pay for CEO's multi million dollar bonuses or for a $65,000.00 toilet then the system is BROKEN! The question now is how long will the people tolerate it? When is the next Revolution? Will it be a peaceful Revolution?

Posted February 02, 2009

No, they are for the social good!

 

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