Ron Paul says he will get rid of income tax. Is this really doable?
And how will the federal government get money if it doesn't collect income tax?
- Anonymous1 decade agoFavorite Answer
ron paul is a nut case. too many people make their living off of the income tax. accountants, IRS agents, and tax lawyers. but if it WAS abolished, the taxes collected from every other source would increase accordingly, and there would be NO decrease in tax revenue.everyone would simply have another 30% of their income to spend, and it would increase the sales tax they pay by 30%, the excises they pay by 30%, all transaction taxes would increase by that amount, equalizing the total amount taken by the treasury
- Anonymous1 decade ago
Yes it is.. He's not eliminating said taxes only the income tax, which is used to pay back interest to the Federal Reserve for printing their worthless money.. but as SageandScholar mentioned he would have to go through Congress in order to accomplish this (which he has already recognized)
And this will NOT increase the gap between the rich and the poor, he isn't adding a sales/value added tax to replace it. He will reduce government spending, instead of placing the burden on taxpayers.. keeping a very low flat tax.
- Anonymous1 decade ago
It is possible, he would replace it with the fair tax. So the government would get money that way.
By the way he says the federal government is too big and is wasting tax dollars anyways, so the government dousnt really need the amount of money they claim.
- mick tLv 51 decade ago
Actually, it's easily do-able. If we take away the governments power to borrow money, we would have no interest to pay, thus no need for an income tax. Read a summary of the Rose Commission Report. It's a congressional report from the 80s that explains how we wouldn't have to pay taxes on our labor if we didn't borrow money at interest from the FED. The solution is simple. Let congress print money and borrow it from itself (interest free). It will take some time to change the monetary system, but once that's accomplished, there will be no need for the Federal Reserve or the IRS. It should be noted that a central bank and a graduated income tax are part of the communist economic system. A free market has no need for them. The market needs most of the things the government pays for, so if the government didn't do it, the market would have to finance most of our infrastructure themselves in order to continue doing business. Businesses should rise and fall due to demand for their products and services, not because the government uses taxpayer money to subsidize them. Why should one unsuccesful industry be subsidized, while another is allowed to fail when there is obviously no demand for either industry? Also, by allowing the government to have this power over our money, we lose power as individuals. The whole system is in violation of our revolutionary ideals, and should be reformed.
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- freedom firstLv 51 decade ago
Its totally possible. If you cut spending back to pre-Bush levels (aka 2000 budget level) you could eliminate the personal income tax. You'd still have the corporate income tax and all the various other user fees, contracts, and payments that the government receives, (there are hundreds of taxes, just at the federal level)
You could probably continue slashing taxes and spending at the federal level if you coordinated with the states to ensure that they brought their taxes up a little bit to administer public services more locally.
Remember, social security, which is 13% of the first ~$100,000 in income would still be intact without the "federal income tax" Although they are both payroll taxes, they are separate taxes. Ron Paul's plan would give younger workers a choice to take a small tax cut on their social security obligation and put that money into private investment accounts. If you wanted to stay in social security and pay your 13% you could do that, or if you wanted out you could pay like 5 or 6% or something (guessing numbers based on the general language of what I've read in his proposals)
- NaturescentLv 41 decade ago
This is very doable - especially once the over bloated government is downsized to a limited Constitutional government.
Ron Paul wants to have something like the fair tax which means everyone who is in the US will pay to help support our country with the goods they buy. This includes illegal migrants who so far have been freeloading without paying taxes.
So with an additional 30+ million people paying into our taxes instead of just taking from our resources paid for by the struggling middle class who are loosing more jobs every day to illegals and foreign countries, the transition will be much easier.
Ron Paul is very educated. I'm sure he has a plan to end the abuse of those who have been crippling our economy.
"Ron Paul believes the so called free trade deals and world governmental organizations like the International Criminal Court (ICC), NAFTA, GATT, WTO, and CAFTA are a threat to our independence as a nation. They transfer power from our government to unelected foreign elites.
The ICC wants to try our soldiers as war criminals. Both the WTO and CAFTA could force Americans to get a doctor’s prescription to take herbs and vitamins. Alternative treatments could be banned.
The WTO has forced Congress to change our laws, yet we still face trade wars. Today, France is threatening to have U.S. goods taxed throughout Europe. If anything, the WTO makes trade relations worse by giving foreign competitors a new way to attack U.S. jobs.
NAFTA’s superhighway is just one part of a plan to erase the borders between the U.S. and Mexico, called the North American Union. This spawn of powerful special interests, would create a single nation out of Canada, the U.S. and Mexico, with a new unelected bureaucracy and money system. Forget about controlling immigration under this scheme.
And a free America, with limited, constitutional government, would be gone forever.
Let’s not forget the UN. It wants to impose a direct tax on us. I successfully fought this move in Congress last year, but if we are going to stop ongoing attempts of this world government body to tax us, we will need leadership from the White House.
We must withdraw from any organizations and trade deals that infringe upon the freedom and independence of the United States of America."
Working Americans like lower taxes. So do I. Lower taxes benefit all of us, creating jobs and allowing us to make more decisions for ourselves about our lives.
Whether a tax cut reduces a single mother’s payroll taxes by $40 a month or allows a business owner to save thousands in capital gains taxes and hire more employees, that tax cut is a good thing. Lower taxes allow more spending, saving, and investing which helps the economy — that means all of us.
Real conservatives have always supported low taxes and low spending.
But today, too many politicians and lobbyists are spending America into ruin. We are nine trillion dollars in debt as a nation. Our mounting government debt endangers the financial future of our children and grandchildren. If we don’t cut spending now, higher taxes and economic disaster will be in their future — and yours.
In addition, the Federal Reserve, our central bank, fosters runaway debt by increasing the money supply — making each dollar in your pocket worth less. The Fed is a private bank run by unelected officials who are not required to be open or accountable to “we the people.”
- Just my opinionLv 51 decade ago
Some states don't have state taxes but they still survive. Like Texas there is no state income tax but the sales tax is almost 9% and property taxes are really high. They will find a way to replace it with something else that is unfair and drains the middle class.
- Gary WLv 41 decade ago
The government collects about 60% of it's revenue from other sources.
He'd have to cut the federal budget dramatically before he did that. He wouldn't get rid of the income tax all at once. He'd be more likely to phase it out.
- blankenbeclerLv 44 years ago
i think of that MR.Paul is a remarkable guy with many super innovations approximately a thank you to alter this united states of america yet even he ought to understand that this united states of america or the different ought to never do away with earnings tax's.you notice that there are some issues the government controls that place self assurance in earnings taxes to stay to tell the story or maybe regardless of the undeniable fact that we've alot of waste in government those businesses ought to never flow away which incorporate,Police,hearth,the post place of work,and Congressional salaries.Land taxes on my own ought to never pay for all of that and regardless of the undeniable fact that i've got self assurance the earnings tax must be decrease and we ought to cut back the dimensions of government to realize that purpose yet we ought to never do away with that tax.
- 1 decade ago
How did the Government get money before the Income Tax, before 1913? They did just fine, not a dime of that income tax money goes to anything other than to pay down our national debt.
The Local Taxes you pay, for smokes, for beer, for gas, that is what pays for parks, schools, and roads. It is a slick trick that has been pulled on America, to make you think it funds necessary things.
The Income Tax is allready volutary. Yes, you heard me, there have been supreme court rulings on this. Also the 13th Amendment was never even ratified. The whole thing is a scam as proven by Aaron Russo in his documentary America: Freedom to Facism. In the video he shows the actual tax code which says that the Income Tax is voluntary for workers. If you own a business it is different. But as a worker, your labor is your property, so you are not making profits you are trading your labor for hard currency. Fair Trade, and they cannot tax that. IRS agents like Joe Bannister have quit because of this.
If you don't believe me do some research. There is a group out there offering $100,000 to anyone who can show the law that says we have to pay income taxes. Watch Freedom to Facism on Google video today for free. Get educated about fractional reserve banking.Source(s): Infowars.com Google.com Truthnews.us www.freedomtofascism.com