It has been stated that that "The tax system is the barometer of the liberty in any society" [Dr. Charles Adams]. So can our method of taxing American citizens really stack up? Maybe a good location to start answering the question is with a better understanding of how many different taxing entities exist inside the United States. Tax lawyers suggest there are over 100,000 different agencies in the United States positioned in some way or fashion to grab your cash in the name of: "you owe back taxes."
It ‘s fair to say, and most tax attorneys would agree, our method of taxes has become so complex and burdensome that often it requires specialized knowledge and skill to interpret and understand the numerous statutes and rules governing the way we're taxed in this country. What’s much more, IRS tax attorneys suggest such understanding and skill might also be needed to comprehend such issues as, what information is required to comply with taxing entities’ disclosure requirements; what is involved within the administration of the taxes; as well as rules and statues about how the government might collect back taxes can turn out to be overly complex and confusing to the uninitiated.
In the event you spend anytime speaking with a tax proponent, he or she will most likely tell you "it is really a privilege to pay taxes" and/or they’ll try to remind you just how much the government does for us with the taxes it collects. But at what point does the Government’s insatiable have to keep feeding itself with our nickels and dimes create an unfair and burdensome tax? Maybe, an examination of the taxes which sparked The Boston Tea Party in 1773 may shed some light on the problem.
Tax lawyers and historians note the Boston Tea Party took place due to two challenges confronting the British Empire in 1773: financial troubles of the British East India Company; and an ongoing dispute in between American colonists and Britain about British Parliament's authority, if any, over the colonies with out any elected representation. But what ought to be obvious, is if the tax had been insubstantial the whole taxation with out representation issue might not have boiled over into a Revolution.
Until the year 1767, the East India Business reportedly paid an ad valorem tax (a tax based on the value of the property). Tax attorneys explain that ad valorem taxes are usually imposed at the time of a transaction, like a sales tax. At the time of the Boston Tea Party, the ad valorem tax on tea was reportedly about 25%. These high taxes, combined with the fact that tea imported into Holland was not taxed by the Dutch government, meant that Americans could buy illegally trafficked Dutch tea at a less expensive cost.
So consider, a 25% tax (coupled with other factors) prompted a revolution! Compare that with the current federal income tax rate, which presently has a ceiling at thirty-five percent (35%) of your taxable income. And, according to Tax lawyers, do not forget to add the Medicare Tax, which is a flat 2.9% on all of your compensation income. Half (1/2) of which is paid by your employer (which still affects how much you earn) and the other half (1/2) comes out of your pocket directly. Then, of course, Tax attorneys remind us there's also Social Security tax, which once more, is a flat tax, but it has a maximum cap (12.4% of all income as much as $106,800 dollars). Like Medicare taxes, your employer pays half (6.2%) and you get to pay the other half yourself (note for 2011 only, your percentage will be decreased to 4.2%). And don’t forget, State and Local taxes, gasoline taxes, sales taxes, property taxes, and the list goes on and on. So, are you ready to toss something overboard yet?
If this small walk via history hasn’t convinced you the answer to the question posed earlier is most likely closer to oppression, then liberty, than you might wish to think about running for Congress
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