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Taxes and the Economy



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"The apportionment of taxes on the various descriptions of property is an act which seems to require the most exact impartiality; yet there is, perhaps, no legislative act in which greater opportunity and temptation are given to a predominant party to trample on the rules of justice. Every shilling which they overburden the inferior number is a shilling saved to their own pockets." --James Madison, Federalist No. 10 , 1787

"There is far more danger in public than in private monopoly, for when Government goes into business it can always shift its losses to the taxpayers. Government never makes ends meet, and that is the first requisite of business." --Thomas Edison

"The great leading objects of the federal government, in which revenue is concerned, are to maintain domestic peace, and provide for the common defense. In these are comprehended the regulation of commerce that is, the whole system of foreign intercourse; the support of armies and navies, and of the civil administration." --Alexander Hamilton, remarks to the New York Ratifying Convention, 1788

"A just security to property is not afforded by that government, under which unequal taxes oppress one species of property and reward another species." --James Madison Primary Author of the U.S. Constitution

"As on the one hand, the necessity for borrowing in particular emergencies cannot be doubted, so on the other, it is equally evident that to be able to borrow upon good terms, it is essential that the credit of a nation should be well established." --Alexander Hamilton, Report on Public Credit

Where Does the Federal Government Get All That Money? - (PragerU) Information Station ...Did you know that the U.S. federal government collects more than $3 trillion in taxes each year? Where does all that money come from? Find out in this short video. ...This video is part of a collaborative business and economics project with Job Creators Network and Information Station. To learn more, visit informationstation.org.

Taxing the Rich Short-Sighted Scheme

Stephen Moore: If we soak the rich, will everyone get wet? (Aug. 31, 2021) ...Tax rates would rise to 50% or more, and death taxes would increase by a record amount. As one liberal commentator recently put it, “It’s time to divide the spoils of the American economy.” But our tax code already is highly progressive, and far more than most people have been told.

     If you believe the media, you would think there are country clubs full of millionaires and billionaires who pay little or no taxes. Some invest a lot of money in tax accountants and tax avoidance, but that isn’t because tax rates are not high enough. If someone has a zero tax liability, raising the tax rate to 50% still means paying 50% of zero, which is zero. Tax avoidance happens because Congress has affixed so many special interest loopholes onto the tax code, like barnacles on the hull of a ship.

     ...Today, according to IRS data collected by the Urban-Brookings Tax Policy Center, the top 1% pay roughly 40% of income taxes. The Tax Foundation has found that this is close to a record share of taxes paid by the rich, and far higher than in most other nations. Even in the more socialist European nations, the rich don’t pay that large a share.

     ...The other troubling trend in federal tax policy is that since the coronavirus hit, the share of people who pay no taxes at all has skyrocketed. The Tax Policy Center shows that six of 10 households paid no federal income taxes during pandemic-stricken 2020. That’s right. Zero.

     ...A simple flat tax rate of 19% without all the loopholes would force almost everyone to pay some tax each year. Moreover, it would preclude the millionaire and billionaire crowd from sheltering the bulk of their income in loopholes and exotic deductions.


Taxation, Theft, and the Sin of Envy - BY GARY DEMAR - ...Taxing the super-wealthy will appeal to millions of people, but they do not have the right to other people's money no matter how much they believe that such a tax would be the right thing to do. ...Liberals are incensed when it is suggested that "the rich" get any type of tax reduction even though the top 50% of wage earners pay 96% of all income taxes. Since they spend more money, the rich also pay a disproportionate amount in sales, property, entertainment, and excise taxes. Without the rich, most people would not have jobs.

     ...The research and development costs of any new technology are enormous. That's why the initial entry of new products into the market is expensive. But over time, when the original investment of capital is recouped and production increases, costs and prices fall. We saw this with CD and DVD players. Today, music can be purchased online and stored on a device that can hold tens of thousands of songs. People with money made these leaps in technology and price reduction possible. Slamming the rich by contending that they should pay more in taxes to equalize income is the sin of envy. Envy is not the same as jealousy or covetousness. The covetous person says, "I wish I had what he has, and I'm miserable that I don't have it." Envy is vastly different.

     ...This is why the Bible describes envy as "rottenness of the bones" (Prov. 14:30). Cain was the first envier. ...The long-term result is the destruction of the prosperous person's ability and incentive to create wealth. ...Modern-day economic theory feeds off the sin of envy. The first step is to promise the citizenry that they will get some of the largess of the rich. When that only goes so far, legislators will make it more difficult for the prosperous to remain prosperous. Obstacles will be put up to stifle their success, all in the name of equality. We've seen it happen before. The Communists had to build a wall around East Berlin to keep the industrious and innovators from fleeing the politics of envy.

Taxes & Economy Resources

  • Mandating charity - EarsToHear.net resource revealing how Progressive/Socialist/Marxist mandates undermine both charity and violate the Constitution.

  • Ben Carson: 'You're Very Unlikely to Live in Poverty If You Do (These) Things' ...Carson pointed to the Brookings Institute, which produced a study on poverty a few years ago: And they concluded that there were three or four things that a person could do to reduce their likelihood of living in poverty to 2 percent or less. Now, that should perk all of our ears up. What are those things? Number one, finish high school. Number two, get married. Number three, get a job. Number four, wait until you`re married to have children. Just do those things, you're very unlikely to live in poverty if you do those things, and you're much more likely to be able to realize the American dream. Our policy should be aimed at things like that, not at just throwing money at people without providing the appropriate background in order to use it correctly. ...Carson said politicians have been throwing money into poverty programs since President Lyndon Johnson's Great Society: "And that hasn't really helped. What really did help quite a bit just recently is creating a situation, an economic situation, by having an appropriate tax structure and regulatory environment that caused businesses to blossom. And there were so many businesses being created. They were looking for people to work there. The black unemployment rate went down, not to a 10-year low, not to a 20-year low, but to the lowest it's ever been. The wealth gap was starting to be filled. And what that tells you is that the way you fix that is, you create the right environment. You don't just grow government and throw more programs at it."

  • The "Freedom in the 50 States" study measured economic and personal freedom using a wide range of criteria, including tax rates, government spending and debt, regulatory burdens, and state laws covering land use, union organizing, gun control, education choice and more. It found that the freest states tended to be conservative "red" states, while the least free were liberal "blue" states. The freest state overall, the researchers concluded, was North Dakota, followed by South Dakota, Tennessee, New Hampshire and Oklahoma. The least free state by far was New York, followed by California, New Jersey, Hawaii and Rhode Island.

  • MyGovCost.org The Government Cost Calculator is a unique service from The Independent Institute that enables any American to clearly understand three aspects of federal government spending. First, the Calculator helps you determine how much you will pay for various federal programs now and over the course of a lifetime. Second, it compares those tax payments to the forgone earnings that would have been possible if such funds were kept and invested in private market accounts. Finally, the Calculator enables you to see the difference between government expenditures and your tax payments, clearly illustrating the growing debt obligations you face in the future. Unlike total or "per capita" government debt calculators currently available, the Calculator personalizes government spending, enabling you to see how much federal programs are costing you now and how much they will cost you in the future. MyGovCost.org is made possible by the generosity of our Independent Associate Members.

  • Heritage Foundation - Fundamental tax reform would alleviate the harm caused by the tax system and significantly strengthen the economy.   Learn more about tax policy that incentivizes economic growth and prosperity for both individuals and private businesses with Solutions.

  • Americans For Tax Reform

  • Citizens Against Government Waste

  • The Center for Responsive Politics (Open Secrets) is a non-partisan, non-profit research group based in Washington, D.C. that tracks money in politics, and its effect on elections and public policy. The Center conducts computer-based research on campaign finance issues for the news media, academics, activists, and the public at large. The Center's work is aimed at creating a more educated voter, an involved citizenry, and a more responsive government.

  • The Fair Tax is a 23 percent consumption tax on all new purchases. Unlike the current system that siphons off $23 from every $100 earned, the Fair Tax gives the consumer the control who much he/she is taxed--the more you spend, the more you are taxed. The Fair Tax system would replace the entire federal income tax and Social Security systems. All current forms of federal taxation would end. In other words, you would keep 100 percent of your paycheck. Your savings and investments would never be taxed. And the best part? The Fair Tax would completely fund the federal government, Social Security and Medicare!

  • "Thomas Sowell: Common Sense in a Senseless World" is a new one-hour documentary that traces Sowell's journey from humble beginnings to becoming one of America's most preeminent economists, prolific authors, and public intellectuals, and senior fellow at the Hoover Institution since 1980. Hosted by Jason Riley, a member of The Wall Street Journal editorial board, the one-hour program features insights from Sowell and interviews with his close friends and colleagues, revealing why this intensely private man is considered by many to be "one of the greatest minds of the past half-century."

  • Free To Choose: The Original 1980 TV Series - "Free To Choose" is the ground-breaking PBS television series featuring Milton Friedman, Nobel Prize-winning economist. These programs, filmed on location around the world, have helped millions of people understand the close relationship between the ideas of human freedom and economic freedom. The interaction between those ideas has created in the U.S. the richest and freest society the world has ever known. Milton Friedman sees this success threatened by the tendency in the last few decades to assume that government intervention is the answer to all problems. In these programs, which first aired on January 11, 1980, Dr. Friedman focuses on basic principles. How do markets work? Why has socialism failed? Can government help economic development? The 1980 version consists of 10 one-hour programs.

    The Power of the Market
    The Tyranny of Control
    Anatomy of Crisis
    From Cradle to Grave
    Created Equal
    What's Wrong with Our Schools?
    Who Protects the Consumer?
    Who Protects the Worker?
    How to Cure Inflation
    How to Stay Free

Thomas Jefferson - "I place economy among the first and most important virtues, and public debt as the greatest of dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt. If we run into such debts, we must be taxed in our meat and drink, in our necessities and in our comforts, in our labor and in our amusements. If we can prevent the government from wasting the labor of the people, under the pretense of caring for them, they will be happy."  

Ronald Reagan - "[T]hose who have never broken free from the mentality of tax-and-tax and spend-and-spend still think increasing taxes is the best way to solve America's problems. ... We need a tax policy that offers incentives for people to work, save, and invest -- all the things that will keep our economy growing and improve our well being. We need a basic tax reform that will permit us to bring everybody's tax rates down. ... Our country needs leadership that can see beyond the demands of the special interest groups and prepare America for a better tomorrow."  

Thomas Jefferson (letter to Joseph Milligan, 6 April 1816) Reference: The Writings of Thomas Jefferson, Memorial Edition, Lipscomb and Bergh, eds., vol. 14 (465) "For example. If the system be established on basis of Income, and his just proportion on that scale has been already drawn from every one, to step into the field of Consumption, and tax special articles in that, as broadcloth or homespun, wine or whiskey, a coach or a wagon, is doubly taxing the same article. For that portion of Income with which these articles are purchased, having already paid its tax as Income, to pay another taz on the thing it purchased, is paying twice for the same thing; it is an aggrievance on the citizens who use these articles in exoneration of those who do not, contrary to the most sacred of the duties of a government, to do equal and impartial justice to all its citizens."

"We don't have a trillion-dollar debt because we haven't taxed enough; we have a trillion-dollar debt because we spend too much." ... " Government does not solve problems; it subsidizes them." -- Ronald Reagan

Blessed are the young for they shall inherit the national debt.
- Herbert Hoover

"I practice charity regularly. I believe in sharing. But when government takes our money by force and gives it to others, that's not sharing."
- John Stossel

"A liberal is a man who will give away everything he doesn't own."
Frank Dane

"A government which lays taxes on the people not required by urgent public necessity and sound public policy is not a protector of liberty, but an instrument of tyranny." Calvin Coolidge

"To compel a man to furnish contributions of money for the propagation of opinions which he disbelieves and abhors is sinful and tyrannical." Thomas Jefferson

"If you examine [The 16th Amendment] carefully, you will find that a sufficient number of states never ratified that amendment." U. S. District Court Judge James C. Fox (2003)

"[W]e don't have deficits because people are taxed too little. We have deficits because big government spends too much." Ronald Reagan

Accounts Receivable Tax Cigarette Tax Building Permit Tax
CDL license Tax Corporate Income Tax Dog License Tax
Excise Taxes Federal Income Tax Federal Unemployment Tax (FUTA)
Fishing  License Tax Food License Tax Fuel Permit Tax
Gasoline Tax  Gross Receipts Tax Hunting License Tax
Inheritance Tax Inventory Tax IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax Luxury Taxes Marriage License Tax
Medicare Tax Personal Property Tax Property Tax
Real Estate Tax Service Charge Tax Social Security Tax
Road Usage Tax Sales Tax Recreational Vehicle Tax
School Tax State Income Tax State Unemployment Tax (SUTA)
Telephone Federal Excise Tax Telephone Federal Universal Service  Fee Tax Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax  Telephone Recurring and  Non-recurring Charges Tax Telephone State and Local Tax
Telephone Usage Charge Tax Utility Taxes Vehicle  License Registration Tax
Vehicle Sales Tax Watercraft  Registration Tax Well Permit Tax
Workers Compensation Tax    

Calvin Coolidge: "The collection of taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare, is only a species of legalized larceny. The wise and correct course to follow in taxation is not to destroy those who have already secured success, but to create conditions under which everyone will have a better chance to be successful." 

President John F. Kennedy "Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased -- not a reduced -- flow of revenues to the federal government. ... The present tax codes ... inhibit the mobility and formation of capital, add complexities and inequities which undermine the morale of the taxpayer, and make tax avoidance rather than market factors a prime consideration in too many economic decisions."

John F. Kennedy addressing the Economic Club of New York, 14 December 1962 - "I know you share my conviction that proud as we are of its progress, this nation's economy can and must do even better than it has done in the last five years. Our choice, therefore, boils down to one of doing nothing and thereby risking a widening gap between our actual and potential growth... or taking action at the federal level to raise our entire economy to a new and higher level of business activity...

"The most direct and significant kind of federal action aiding economic growth is to make possible an increase in private consumption and investment demand, to cut the fetters which hold back private spending. In the past, this could be done... by increasing federal expenditures more rapidly than necessary, but such a course would soon demoralize both the government and our economy. If government is to retain the confidence of the people, it must not spend more than can be justified on grounds of national need or spent with maximum efficiency, and I shall say more on this in a moment.

"The final and best means of strengthening demand among consumers and business is to reduce the burden on private income and the deterrents to private initiative which are imposed by our present tax system, and this administration pledged itself last summer to an across-the-board, top to bottom cut in personal and corporate income taxes...

"I am not talking about a 'quickie' or temporary tax cut. Nor am I talking about giving the economy a mere shot in the arm, to ease some temporary complaint. I am talking about the accumulated evidence of the last five years that our present tax system... exerts too heavy a drag on growth in peacetime, that it siphons out of the private economy too large a share of personal and business purchasing power, that it reduces the financial incentives for personal effort, investment and risk taking.

"[We should reduce taxes] by a sufficiently early date and a sufficiently large amount to do the job required. Early action could give us extra leverage, added results and important insurance against recession. Too large a tax cut, of course, could result in inflation and insufficient future revenues, but the greater danger is a tax cut too little or too late to be effective.

"I do not underestimate the obstacles which the Congress will face in enacting such legislation. No one will be satisfied. Everyone will have his own approach, his own bill, his own reductions. A high order of restraint and determination will be required if the possible is not to wait on the perfect.

"This nation can afford to reduce taxes... but we cannot afford to do nothing. For on the strength of our free economy rests the hope of all free nations."

Thomas Jefferson:  "Would it not be better to simplify the system of taxation rather than to spread it over such a variety of subjects and pass through so many new hands."

"The multiplication of public offices, increase of expense beyond income, growth and entailment of a public debt, are indications soliciting the employment of the pruning knife."

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...."

Benjamin Franklin: When the people find they can vote themselves money, that will herald the end of the republic."

"Every time we talk about these taxes we get around to the idea of 'from each according to his capacity and to each according to his needs'. That's socialism. It's written into the Communist Manifesto. Maybe we ought to see that every person who gets a tax return receives a copy of the Communist Manifesto with it so he can see what's happening to him."  T. Coleman Andrews

"The power to tax involves the power to destroy."  Justice John Marshall

"What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin."  Mark Twain

"The income tax has made liars out of more Americans than golf." Will Rogers

"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."  Ronald Reagan

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