Nearly 50% Don’t Pay Federal Income Tax: Let’s Make it 100%


Every year around this time, millions of Americans fill out a form 1040 – hoping they don’t have to write a check to Uncle Sam. Millions more know they will be getting a “refund”; which is normally a return of some portion of “their money” that was withheld in excess of what the IRS thinks they were “owed;” while a smaller number will receive a “refund” in excess of the amount withheld by the IRS. The Tax Policy Center reports that nearly 50% of “households” filing with the IRS will “pay no income tax.” While this enrages many people who will claim that the 50% that do pay are “supporting” the 50% that don’t, I see things a little differently.

The 50% that do pay income tax are not “supporting” anyone. The Grace Commission in 1984 issued a report that stated in part, “100 percent of what is collected (by the IRS) is absorbed solely by interest on the Federal debt…all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from their Government.” Certainly some of the revenue from the IRS is redistributed to those that receive a more from the IRS than they had forcibly withheld from them, though that could hardly be interpreted as “supporting” the ones that don’t “pay.” Every time I hear a report like this, I’m reminded of the “Whitey” Harrell trial. Mr. Harrell was charged with not filing an Illinois State tax return and was acquitted by the jury. Marcella Brooks, the juror that was vocal in getting the acquittal, recounts in “America: Freedom to Fascism” that the other members of the jury said “but he’ll get away with it.” Mr. Harrell was acquitted because “the IRS couldn’t show us the law.” Millions of Americans are like the members of that jury – they’re not really upset that others aren’t paying; they’re upset that they are!

The TPC report doesn’t explain all of the ways people avoid federal income tax and that is a very important part of the equation. “Half of them earn too little, while the other half — mostly middle- and lower-income households — will take advantage of tax credits such as the earned income credit, the child and child-care credits, the American Opportunity and Lifetime Learning credits, which help pay for college, and the saver’s credit, which subsidizes retirement saving.”[TPC] There are also tax credits for buying a “green” automobile, making “green” improvements to your house, mortgage deduction, not to mention all of the various credits and deductions for owning certain types of businesses and investment strategies that yield “tax-exempt income.” Congress uses these tax deductions and credits as a way to pander to certain groups in exchange for votes and/or campaign contributions, though simply eliminating these deductions and credits will not solve anything. The only solution is to eliminate the IRS, abolish the Federal Reserve and abolish all unconstitutional spending. Then, and only then, 100% of American households will pay no federal income tax!

2 thoughts on “Nearly 50% Don’t Pay Federal Income Tax: Let’s Make it 100%

  1. April 18, 2011

    Dear Ron Paul:

    I heard Mitt Romney on Sean Hannity this afternoon and he is not dealing honestly with the American People – end the Income Tax – It is a fundamental right to earn a living!

    I would certainly hope and I am therefore assuming that you take your solemn oath of office as seriously as I would if I were to take that oath and that you consider your obligation to support the Constitution and laws of the United States foremost among your duties as a representative in our Congress. I also believe you would agree that you cannot support and defend what you do not know.

    I therefore respectfully, but urgently, request that you submit the following questions to the Congressional Research Service, Library of Congress:

    What, if any, is the statutory basis for the Internal Revenue Service's contention that the typical working American citizen is liable for the income tax?

    What, if any, is the statutory basis for the Internal Revenue Service's “zero basis” rule, which considers wages, salaries and other personal earnings as 100% profit—income within the Constitutional definition of the term—while not treating gross receipts for any other conversion of capital or labor as income?

    What, if any, Supreme Court rulings recognize the federal government's authority to tax (“power to destroy”) the exercise of fundamental rights, such as the fundamental right to earn a living through one's own labor at any lawful occupation of his choosing?

    In your inquiry, please specifically instruct the CRS to confine its response to statutory and Supreme Court authorities, since only statutes can impose liability or define the scope of any strictly construed law (as are tax laws) and, therefore, regulations purporting to expand that scope are of no force or effect, and only the Supreme Court (not inferior courts, which are the creatures of Congress and, therefore, can possess no authority greater than their creator) can provide authoritative interpretation of Constitutional terms and/or limitations.

    I already know the answers to those questions, which you can obtain yourself by reading the comprehensive and authoritative memorandum you can find at (See Item 5, The Tom Cryer Memorandum), but I believe receiving the answers to those questions from your own research resources would be even more convincing.

    When you receive the answers to those inquiries, please provide me with a copy of CRS's response along with your statement relating exactly how you intend to perform your sworn duty in light of the answers.

    Respectfully, but conditionally, yours,

  2. We cannot pay taxes with dollar bills that the IRS (Imaginary Revenue Scam)said “are not dollars” or with credit. The Federal Reserve said their system works us “only with credit” that would keep its value “if there were fewer people bidding against each other.” Source: Our misleaders have no use for money when all of us will risk out lives for credit.” The IRS asks no one for money and no one gives them money. They ask for checks that
    authorize banks to reduce your credit and thus regulate our bidding credit against each other lest “the fraud upon the public cand be concealed no longer.”–Quoting John Maynard Keynes in The Economic Consequences of The Peace. ALL REPORTS OF GOVERNMENT SPENDING ARE LIES! THEY WORK US ONLY WITH CREDIT THAT EXISTS ONLY IN THE MINDS OF SLAVES. TO DO SO, THEY MUST CONTROL MOST MINDS. DON'T MOST PEOPLE BELIEVE THAT GOVERNMENT SPENDS MONEY? DON'T YOU? READ IT AGAIN, PLEASE.

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