You Are Being Taxed To Death!… 24 Plus Facts About The Outrageous Taxes In The United States… Just Wait Until January 2013!

 

taxes-born-free-taxed-to-death

The U.S. tax code is a complete and utter abomination and it needs to
be thrown out entirely.  Nobody in their right mind would ever read the
whole thing – it is over 3 million words long.  Each year, Americans
spend billions of hours and hundreds of billions of dollars
trying to comply with federal tax requirements. ~ See Related article – Comments 

Sadly, it is the
honest, hard working Americans in the middle class that always get hit
the hardest.  The tax code is absolutely riddled with loopholes that big
corporations and the ultra-wealthy use to minimize their tax burdens as
much as possible. 

Many poor people do not pay any income taxes at
all.  The dishonest are rewarded for cheating on their taxes (if they
can get away with it) and the ultra-wealthy have moved trillions of
dollars to offshore tax havens where they can avoid U.S. taxation
altogether. 

Our system is incredibly unfair to the millions of hard
working people in the middle class and upper middle class that drag
themselves out of bed and go to work each day and try to do the right
thing. 

In addition, the current U.S. tax system is incredibly
inefficient, it diverts a tremendous amount of resources away from more
valuable economic activities, and it has chased thousands of businesses
and trillions of dollars out of the United States. 

The U.S. tax code is
such a complete and utter mess at this point that it can never be
“fixed”.  The only rational thing to do is to abolish it completely, and
any politician that tells you otherwise is lying to you.

The following are 24 outrageous facts about taxes in the United States that will blow your mind….

1 – The U.S. tax code is now 3.8 million
words long.  If you took all of William Shakespeare’s works and
collected them together, the entire collection would only be about
900,000 words long.

2 – According to the National Taxpayers Union, U.S. taxpayers spend more than 7.6 billion hours
complying with federal tax requirements.  Imagine what our society
would look like if all that time was spent on more economically
profitable activities.

3 – 75 years ago, the instructions for Form 1040 were two pages long.  Today, they are 189 pages long.

4 – There have been 4,428 changes
to the tax code over the last decade.  It is incredibly costly to
change tax software, tax manuals and tax instruction booklets for all of
those changes.

5 – According to the National Taxpayers Union, the IRS currently has 1,999 different publications, forms, and instruction sheets that you can download from the IRS website.

6 – Our tax system has become so complicated that it
is almost impossible to file your taxes correctly.  For example, back
in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household.  All 46 of them came up with a different result.

7 – In 2009, PC World had five of the most popular
tax preparation software websites prepare a tax return for a
hypothetical household.  All five of them came up with a different result.

8 – The IRS spends $2.45 for every $100 that it collects in taxes.

9 – According to The Tax Foundation, the average American has to work until April 17th just to pay federal, state, and local taxes.  Back in 1900, “Tax Freedom Day” came on January 22nd.

10 – When the U.S. government first implemented a
personal income tax back in 1913, the vast majority of the population
paid a rate of just 1 percent, and the highest marginal tax rate was just 7 percent.

11 – Residents of New Jersey pay $1.64 in taxes for every $1.00 of federal spending that they get back.

12 – The United States is the only nation on the planet that tries to tax citizens on what they earn in foreign countries.

13 – According to Forbes, the 400 highest earning Americans pay an average federal income tax rate of just 18 percent.

14 – Warren Buffett had an effective tax rate of just 17.4 percent for 2010.

15 – The top 20 percent of all income earners in the United States pay approximately 86 percent of all federal income taxes.

16 – Sadly, as Bill Whittle has shown, you could take every single penny that every American earns above $250,000 and it would only fund about 38 percent of the federal budget.

17 – The United States has the highest corporate tax rate in the world (35 percent).  In Ireland, the corporate tax rate is only 12.5 percent.  This is causing thousands of corporations to move operations out of the United States and into other countries.

18 – Some tax havens are doing a booming business in
setting up sham headquarters for U.S. corporations.  For example, the
city of Zug, Switzerland only has a population of 26,000 people but it
is the headquarters for 30,000 companies.

19 – In 1950, corporate taxes accounted for about 30 percent of all federal revenue.  In 2012, corporate taxes will account for less than 7 percent of all federal revenue.

20 – In a previous article, I discussed how many of our largest corporations make huge profits and yet pay less than nothing in taxes….

What U.S. corporations are able to get away with is absolutely amazing.

The following figures come directly out of a report by Citizens for Tax Justice.  These are combined figures for the tax years 2008, 2009 and 2010.

During those three years, all of the corporations below made a
lot of money.  Yet all of them paid net taxes that were below zero for
those three years combined.

How is that possible?  Well, it turns out that instead of paying
in taxes to the federal government, they were actually getting money
back.

So for these corporations, their rate of taxation was actually below zero.

If you have not seen these before, you are going to have a hard time believing some of these statistics…..

*Honeywell*

Profits: $4.9 billion

Taxes: -$34 million

*Fed Ex*

Profits: $3 billion

Taxes: -$23 million

*Wells Fargo*

Profits: $49.37 billion

Taxes: -$681 million

*Boeing*

Profits: $9.7 billion

Taxes: -$178 million

*Verizon*

Profits: $32.5 billion

Taxes: -$951 million

*Dupont*

Profits: $2.1 billion

Taxes -$72 million

*American Electric Power*

Profits: $5.89 billion

Taxes -$545 million

*General Electric*

Profits: $7.7 billion

Taxes: -$4.7 billion

Are you starting to get the picture?

21 – Exxon-Mobil paid $15 billion in taxes in 2009, but not a single penny went to the U.S. government.

22 – Many wealthy Americans hide enormous amounts of
money outside the country in order to avoid paying taxes.  According to
the IMF, a total of 18 trillion dollars is currently being hidden in offshore banks.

23 – The number of traffic accidents spikes each year right around April 15th.  The following is from a recent Bloomberg article….

Deaths from traffic accidents around April 15,
traditionally the last day to file individual income taxes in the U.S.,
rose 6 percent on average on each of the last 30 years of tax filing
days compared with a day during the week prior and a week later,
according to research published in the Journal of the American Medical
Association.

24 – Most of the tax debate is focused on income
taxes, but the truth is that Americans pay dozens of other taxes every
single year.  The following are just a few of the taxes that many
Americans pay….

#1 Building Permit Taxes

#2 Capital Gains Taxes

#3 Cigarette Taxes

#4 Court Fines (indirect taxes)

#5 Dog License Taxes

#6 Federal Unemployment Taxes

#7 Fishing License Taxes

#8 Food License Taxes

#9 Gasoline Taxes

#10 Gift Taxes

#11 Hunting License Taxes

#12 Inheritance Taxes

#13 Inventory Taxes

#14 IRS Interest Charges (tax on top of tax)

#15 IRS Penalties (tax on top of tax)

#16 Liquor Taxes

#17 Luxury Taxes

#18 Marriage License Taxes

#19 Medicare Taxes

#20 Property Taxes

#21 Recreational Vehicle Taxes

#22 Toll Booth Taxes

#23 Sales Taxes

#24 Self-Employment Taxes

#25 School Taxes

#26 Septic Permit Taxes

#27 Service Charge Taxes

#28 Social Security Taxes

#29 State Unemployment Taxes (SUTA)

#30 Telephone Federal Excise Taxes

#31 Telephone Federal Universal Service Fee Taxes

#32 Telephone Minimum Usage Surcharge Taxes

#33 Telephone State And Local Taxes

#34 Tire Taxes

#35 Toll Bridge Taxes

#36 Toll Tunnel Taxes

#37 Traffic Fines (indirect taxation)

#38 Utility Taxes

#39 Vehicle License Registration Taxes

#40 Vehicle Sales Taxes

#41 Workers Compensation Taxes

When you account for all forms of taxation on the federal, state and
local levels there are many Americans that pay out more than half of
their incomes in taxes.

We are being taxed into oblivion, and yet most Americans do not even realize that it is happening.

It is kind of like being killed by thousands of tiny cuts.

So what do all of these taxes buy us?

They buy us a massively bloated government that wastes money on some of the craziest things imaginable.

Millions of Americans work for the federal government, and yet most
of them produce very little of real economic value.  The following comes
from a recent National Review article….

By 2005, the federal government employed 14.6 million
people: 1.9 million civil servants, 770,000 postal workers, 1.44
million uniformed service personnel, 7.6 million contractors, and 2.9
million grantees.

This amounted to a ratio of five and a half “shadow”
government employees for every civil servant on the federal payroll.
Since 1999, the government had grown by over 4.5 million employees.

According to that same article, when you add in state and local government workers the numbers are even more dramatic….

According to the U.S. Census Bureau, there are 3.8
million full-time and 1.5 million part-time employees on state payrolls.
Local governments add a further 11 million full-time and 3.2 million
part-time personnel. This means that state and local governments
combined employ 19.5 million Americans.

Yes, we do need some government.  For example, without any law
enforcement at all our society would descend into complete chaos, and
without any military at all we would be completely open to foreign
conquest.

In order to have a stable, secure society we do need some government.

However, we definitely do not need the massively bloated government that we have today.

The truth is that most government employees are a drain on the system.  Most of them just push paper around.  I used to work in Washington D.C. so I know what pushing paper around is all about.

And as I wrote about yesterday, there are millions of other Americans
that enjoy a comfortable existence at the expense of the federal
government without doing any work whatsoever.

Of course the biggest welfare recipients of all are the big corporations.  All forms of corporate welfare should be eliminated immediately.

When are U.S. taxpayers going to get sick and tired of paying for all of this?

Every single year, the federal government, state governments and
local governments drain massive amounts of desperately needed money from
hard working middle class families.

Then they take that money and spend it on incredibly foolish things.

When are American voters going to stand up and boldly declare that
they have been taxed enough already and they aren’t going to take it
anymore?

The current tax code is completely and utterly broken and it is beyond repair.

Unfortunately, neither the Republicans or the Democrats are proposing that we should get rid of it.

So we are just going to continue to get more of the same year after year, and it is the middle class that will feel the pain.

 

April 11, 2012 – TheEconomicCollapseBlog

 

Related article…

Literally Taxed to Death!… $494 Billion Tax Increase Jan. 1, 2013

 

Comments about this article…

Peego

1. The IRS does not lawfully exist as an agency of the federal
government, as it was never created by an act of congress. This has
been verified by Congressman Pat Danner, of the 6th District of Missouri
and others.

2. 31 USC, Chapter 3, Subchapter 1, shows the organization of the
Department of the Treasury. Nowhere does it mention either the “IRS” or
“Internal Revenue Service”.

3. The IRS is a Private Corporation, based in Puerto Rico. You can easily verify this at http://smallbusiness.dnb.com.

4. The Constitution Of The United States, states in Article 1,
section 9; “No Capitation, or other direct, Tax shall be laid, unless in
Proportion to the Census or Enumeration hereinbefore directed to be
taken.”

5. Nowhere in the law is “income” defined, but the courts have ruled
that “income” is corporate profit or profit from an investment, and not
salary or wages.

In the case of Lucas v Earl, 281 US 111 (1930), the U.S. Supreme Court stated unambiguously that;

“The claim that salaries, wages, and compensation for personal
services are to be taxed as an entirety and therefore must be returned
by the individual who has performed the services which produced the gain
is without support either in the language of the Act or in the
decisions of the courts construing it.

Not only this, but it is
directly opposed to provisions of the Act and to regulations of the U.S.
Treasury Dept. which either prescribe or permit that compensation for
personal services be not taxed as an entirety and be not returned by the
individual performing the services.

It is to be noted that by the
language of the Act it is not salaries, wages, or compensation for
personal servises that are to be included in gross income. That which
is to be included is gains, profits, and income DERIVED from salaries,
wages or compensation for personal services.”

The Court ruled similarly in Goodrich v Edwards, 255 U.S. 527 (1921)
and in 1969, the Court ruled in Connor v U.S. 303 F supp 1187, that,

“Whatever may constitute income, therefore must have the essential
feature of gain to the recipient. This was true when the 16th Amendment
became effective, it was true at the time of Eisner v Macomber supra,
it was true under sect 22 (a) of the Internal Revenue Code of 1938, and
it is likewise true under sect 61 (a) of the I.R.S. Code of 1954. If
there is not gain there is not income … Congress has taxed INCOME and
not compensation.”

“Statutes levying taxes should be construed in case of doubt, against
the government and in favor of the citizen.” (Miller v Gearing 258 F
225).

 

Law_Reader

Wow, I was expecting better research from this publication.

I will start addressing these issues by number.

2. It takes the average citizen less than 5 minutes to comply with
the federal IRC. This I know do to the fact that the average citizen is
not the subject of the income tax.

6. There is no need to file a 1040 form unless you’re filing a 2555 so it does not take any time to not file.

9. Since everything being withheld from your paycheck is 100% voluntary, “tax freedom day” starts on January 1st.

10. The year was 1861 for the income tax.

13. The average citizen of America pays ZERO income tax. Read the law
the only one made liable for the income tax is found in section 1461 of
the IRC and he/she does not withhold from citizens.

24. #1 That stems from a zoning law ruling that never ruled zoning laws as constitutional.
#6 False again, See case Railroad Retirement Board v Alton Railroad Co.
#12 False, it does not apply to citizens. Read the law.
#18 True, If you’re dumb enough to make the state a party to your marriage.
#19 VOLUNTARY so don’t bitch about it.
#24 Only true if you wish to pay into Socialist Security.
#28 VOLUNTARY AGAIN/STILL see section 6211/6212 of the IRC.
#39 False, most people are only tricked into paying it because they do not know/exercise their rights
#40 False see #39

 

Nick

In 1939 the section of the code that was labeled “Determination of
taxable income” was 1 page long, and showed that wages of Americans are
NOT taxable. That section is now 30 pages long, (without any change in
the law), and 1 paragraph in the section labeled “Miscellaneous” is the
section where you look to find the determination. And then that section
refers you to another section that is referred to as “Operative”.

Figure
that out by reading the whole law.

There were no taxes withheld until the idea was broached by a man named
Beardsley Ruml(udersecretary of the Tres) who understood that Americans
would just go along with the small amounts taken from them rather than
ask about the law. That didn’t start until about 1954.

It is the Financial Management Service of the Treasury that is
responsible for collecting money owed to the government, not the IRS.

At ont time you could check with the OMB, and find that the form 1040
from the IRS was not an approved form as mandated by the Paperwork
Reduction Act.

The Supreme Court stated that the 16th Amendment gave congress no new power to tax.

The 2nd Circuit ruled that a person does not even have to respond to the IRS. That has not been challenged.

The issue at hand is the corrupt legal system; lawyers, judges, police,
prosecutors, and bureaucrats. If lawyers, who also happen to be the
majority of our legislators, had one shred of honesty in their bodies we
wouldn’t be having this discussion.

 

See more comments at TheEconomicCollapseBlog

 

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