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De Omnibus Dubitandum - Lux Veritas

Thursday, January 19, 2023

Repeal the 16th Amendment, Fix Government, Advance Freedom

By Rich Kozlovich

On January 18, 2023 y Samantha-Jo Roth published this piece, Democrats hammer House GOP over national sales tax proposal, saying:

Democrats are slamming a deal House Speaker Kevin McCarthy (R-CA) reportedly made with conservative hard-liners to vote on a bill that would eliminate the tax code and replace income taxes with a 30% national sales tax.  Democrats are slamming a deal House Speaker Kevin McCarthy (R-CA) reportedly made with conservative hard-liners to vote on a bill that would eliminate the tax code and replace income taxes with a 30% national sales tax.

McCarthy agreed to give Rep. Buddy Carter's (R-GA) Fair Tax Act a first-ever floor vote as part of negotiations to become House speaker. The bill would abolish the IRS and eliminate national income, payroll, estate, and corporate taxes in exchange for a 30% national sales tax. Additionally, the legislation would send out “prebate” checks to help low-income families.

Why are these people opposed to a national sales tax...really?  After all, they love taxes, so why all this angst?  Because it replaces the Progressive Income Tax system that is stunningly complex, corrupt, plays favorites, hides the fact the Capital Gains tax is a hidden tax on the poor, allows them to control industries, control people's actions, stops political action by their opponents, and most importantly, it will replace the IRS.  The greatest bureaucratic thug of the federal government, which makes up it's own rules and has it's own courts and is the greatest threat to American freedom in existence.  Even worse than the FBI, just a lot more subtle!

My accountant thinks this is a bad idea, and even said that tax would be over 25%, and he's right, but think about this.  Why are business people, and even non-business people paying untold millions of dollars a year to file our taxes?  Because the tax system is so complex even smart capable business people are incapable of filing those taxes correctly, including the quarterly estimated taxes, and if you make a mistake in your estimates, even if at the end of the year you correctly pay what's owed, they fine you for not estimating your tax correctly at the quarterly filings.  
Also, how much does it cost the American public to fund the IRS?  Many years ago I was in Washington and Bob Dole was the speaker, and he was asked if the Withholding Taxes taken out of our paychecks still only pays for the IRS.  I looked at the guy beside me and asked:  "What planet is this guy from?" Dole paused, thought for a second, and then said.   "I think so!" That was a shocker!!!
If it costs that much to keep the IRS in existence, then it's long overdue for them to go.  Think of the massive savings of getting rid of the IRS and not having to pay all those accounting fees?  That savings will eventually be passed down to the consumer.  Remember, American business have to compete for customers with other businesses, and price is always a factor in buying decisions by the consumer.
Most importantly, everyone will then have skin in the game. Currently over 45% of the public pay no federal income tax.  Is it any wonder they vote for those who demand more taxes, more spending, and less responsibility for those at the bottom of the economic spectrum?  But that's an illusion.
Remember when Leona Helmsley was attacked for saying, "only little people pay taxes"?  Well, she was right.  To the wealthy who own the businesses that create America's wealth, taxes are part of the cost of doing business, and they pass those costs on to their customers.  
Manufactures pass the cost down to the distributors, distributors pass those costs down to businesses that buy those products, and those business pass the cost down to the consumer, and if those consumers  don't own businesses, they can't pass those cost down to anyone, and that includes the poorest members of society.   
All those federal taxes are paid for by those who can't pass those costs on to someone else, and these hypocrites know it.  And if they don't know it, they may not be hypocrites, but that means they're too stupid to be in Congress making decisions about taxes.  And unfortunately, I think that's more true than not.  
Dan Mitchell recently wrote an article entitled, National Sales Tax Update: Test Vote for the Fair Tax, 
and where he outlines just  how bad the current system is and offers the Fair Tax as an alternative, I've never been impressed with the Flat Tax/Fair Tax concept as it seems to me it would become as complicated and convoluted as the income tax system we have now. 
But I think this is worth looking at anyway.  I still like the national sales tax.  Let's not be delusional.  There's no taxing system that can't be corrupted, and will be corrupted.  Stealing other people's money under a "legal" framework is too entirely tempting for politicians to resist. The big difference is, at least in my opinion, any corruption taking place with a national sales tax will be more easily detected.

Now, while I'm in favor of a national sales tax to replace income taxes, I'm not in favor of it unless the 16th Amendment is repealed.  Make no mistake.  If a national sales tax is imposed, and the 16th Amendment isn't repealed it won't be long before we have both.  An income tax and a national sales tax, and that will most likely be followed by a Value Added Tax (VAT),  just like Europe.

First things first.  Repeal the 16th Amendment, and then all good things will follow, and hopefully, followed by repealing the 17th Amendment.  Also, how about term limits for Congress and term and age limits for the federal judiciary? Big steps?  All it takes is brains and guts, and you can hire brains.  


  1. "Everything (most certainly) is to be Questioned!"

  2. I'm assuming that's meant as a challenge to my commentary, which is perfectly fine, and if so, can you expand your thoughts?


    1. There was no challenge to you. I simply agreed with what is at the top of your page: “Everything is to be Questioned!”

      I have actually taken the time to study text of the FairTax Act,IN%20THE%20HOUSE%20OF%20REPRESENTATIVES%20January%209%2C%202023

      I have also followed the “FairTax” since it was introduced in the 1990s, and it has always been written in a manner that would actually expand Congress’ taxing reach. The alleged FairTax, if adopted:

      creates an entirely new tax, a 23 percent tax on articles of consumption, and on “taxable property”;

      creates two new tax collecting agencies, an “Excise Tax Bureau” and the “Sales Tax Bureau", in addition to keeping the Bureau of Alcohol, Tobacco and Firearms alive, which will also be collecting taxes;

      Imposes the new 23% “FairTax” on American citizens and businesses while Congress’ power to lay and collect taxes on “incomes” remains fully intact;

      requires taxpayers to file Fair Tax returns twelve times a year;

      requires ordinary working people to register with government in order to exercise a fundamental right of mankind . . . selling the property each has in their own labor;

      requires ordinary people to become tax collectors for government;

      requires taxpayers to keep whatever records Congress may dream up;

      allows Congress to lay and collect countless “excise taxes” which members of Congress may dream up, and are calculated from profits, gains and other incomes;

      and creates a new entitlement, the “Family Consumption Allowance” [a monthly government check sent to every “qualified family” in the U.S.] that would become another political partisan wedge-issue used during election time to buy votes and expand the number of people who are now dependent upon the federal government for their economic needs;

      My pet question is, why on earth would any freedom loving, Republican member of Congress, support this rope-a-dope proposal which enlarges and strengthens the federal government’s iron taxing grip around the American people’s necks?


    2. Thank you, good isights, Rich K