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Archive for December, 2015

Corrected1040

 

The current 1040, as designed by the IRS, violates the Supreme Court’s ruling on Income vs. Compensation (see previous article All Tax Software is Wrong for references).  So I took the liberty to create a proposed alteration that is more honest, preventing the deceit that was designed into the current one.

Example…

Corrected1040ex1

In this example we have separated compensation from income (which is derived from compensation) as ruled by the supreme court.  Suppose my compensation for my labor is 94,000 annually.  I voluntarily contribute $9000.  I say voluntarily because legally you are not required to “comply” by law but only made to believe that you have to by the IRS and since compensation (wages, salaries and tips) is not income.

TaxTable

Using the IRS tax tables to calculate the taxes due based upon my voluntary tax liability of $9000, and filing at the single rate, the taxes come to $903.

Some Ramifications…

  • Mortgage deduction and itemization are not needed as the contribution can be adjusted.
  • More money flowing into the hands of the people that actually produce.
  • More money flowing into the hands of consumers.
  • People can actually afford to pay their bills.
  • More money available for private sector businesses.
  • The shareholders of the Federal Reserve might not get there 6% dividend.
  • Government would have to shrink.
  • 90,000 IRS agents would be unemployed.
  • Eventually, people would have to find meaningful work rather than enter the federal and state bureaucracies.
  • Government theft and plunder would be severally curtailed.
  • The government would not be able to treasury bonds to the Federal Reserve member banks.  Because most tax revenue goes to paying interest on previous loans, the US Treasury would not be able to issue unlimited amounts of government bonds.
  • The government would not be able to continue funding unconstitutional agencies and programs because they would not be able to pay interest on the loans.  No pay interest, no get loans.  This will happen eventually anyway.
  • The government my have to renege on the promises it should never have made.  It will have to do this anyway soon enough.
  • Wall St. bankers and London financial houses may not get their bonuses.
  • Our oppressors (the government bureaucrats and politicians) will have difficulty with their masters (the bankers).

There are many more.  Most good in the long run.  Some bad in the short term, especially for our wise and powerful overlords.

Don’t worry to much about government services.  Most exceed the enumerated powers and are unconstitutional anyway.

100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.”  Grace Commission, Letter to President Reagan – January 12, 1984

Most people believe their tax dollars are go directly to the expenses of government.  This false belief is used to encourage people to pay their fair share of the tax burden so they can go on enjoying the benefits of living in America.

For more on the subject of why the government does not need to steal from you go HERE

 

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