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Imagine, A World Without Taxes (Here’s What It Would Look Like)

Imagine, A World Without Taxes (Here’s What It Would Look Like)

Imagine living in a world without taxes. Granted, that’s a bit unlikely to happen, considering mankind’s long history with taxes. It seems that taxes and government go hand-in-hand. It doesn’t matter if you’re talking about the old European feudal system — where Barons and Earls taxed the serfs and merchant caravans crossing their lands — or you’re talking about modern socialistic and democratic governments. All governments tax. Not only does it give them a source of revenue, but it gives them a way of controlling the people.

Nevertheless, let’s indulge our imaginations for a moment and think about the difference that would make to live in a tax-free society. While I don’t expect ever to find such a utopia, seeing what it would be like will show us what taxes are doing to our society.

The first thing we’d all see is more money in our pockets. While the figures from various government watch agencies vary, right now, the average American family pays about 43 percent of their income out in taxes of one sort or another. That’s a lot higher than we expect, mostly because our tax bill is broken into many different pieces. We see the obvious ones like income tax, property tax and sales tax, but there are many, many more.

With an average family income of about $53,657 in 2015 (according to census bureau data), that works out to the average American family paying $23,073 per year in taxes. While this number rises and falls with the political winds and the unstable economy, just knowing that some of us pay out more than $23,000 per year in taxes is shocking enough.

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So, if we were to eliminate all of those taxes, you would suddenly have an extra $23,000 that you could use, assuming that you are the theoretical average family. So, what would you do with it?

I’m sure if we polled ourselves, we’d find all sorts of noble sentiments about how we would use that extra money. Some would talk about saving for retirement, putting their kids through college, giving to non-profit organizations and otherwise making the world a better place to live. But let’s be honest, while all those things are great ideas, the reality is that if we had an extra $23,000, we’d probably spend it.

Imagine, A World Without Taxes (Here’s What It Would Look Like)We’re all much better at spending than we are at saving, and we can always find something that we need to spend extra money on. No matter how many noble intentions we have, a raise in income generally means a raise in our standard of living, not in our standard of saving.

Now, that’s not all bad. Spending money is actually good — good for the economy, that is. One of the major reasons that our economy has been stagnant since the 2008/2009 housing bubble crash is that people and businesses have been afraid to spend money. If there’s one thing that Obama has been good at, it’s getting people to stop spending.

That lack of spending is costing people jobs. If it continues, it could lead to an even worse economy. You see, it’s not the amount of money that exists which make the economy work, but how much of it is moving around. We need that money moving around, creating millions of transactions per day where people buy and sell products and services, so that the money gets into other people’s hands and they can spend it, too.

Let me put it this way. Let’s say that someone has $1 billion dollars and they use it to stuff their mattress, instead of spending it, investing it or even putting it in the bank, so that the bank can invest it. That money does nobody any good. With no goods and services being purchased, that money doesn’t do a thing to help the economy … worse, it doesn’t do a thing to give people jobs.

Okay, so there are somewhere around 116 million families in the United States (2007 figures). If each of those families had an extra $23,000 to spend in a year, it would work out to $2,668,000,000,000. That’s $2.68 trillion dollars; enough to buy more 85 million cars, 7,473 brand new 747 jumbo jets, 2,151 new cruise ships, or to build the world’s tallest building, Dubai’s Burj Khalifa 1,778 times. We could even pay off the national debt in a little over seven years or pay off the combined student debt in less than six months if we so chose.

How many jobs would be created by all of those purchases? There’s no real way of telling. But it’s clear that the number of new jobs created by that much additional cash flowing through the economy would be significant. Granted, the government is putting that money through the economy right now, paying for a myriad of different products, services and entitlements. But no government spends money efficiently. They don’t have to; after all, it’s taxpayer money, not real money.

The point is, every dollar the government takes out of our pockets in increased taxes has to come out of something else. It doesn’t come out of some untapped pool of money that people are sitting on. That doesn’t even happen with the wealthy. Taxing them more, a favorite Democrat tactic, just means that they don’t invest that money in other money-making ventures. In other words, they don’t give people jobs.

Imagine, A World Without Taxes (Here’s What It Would Look Like)Ultimately, it is the government that controls the economy and thereby controls jobs. Not by the Fed’s discount rate, as everyone assumes, but by the policies that they make, taking money out of our pockets in the form of taxes. They also control inflation, taking more money out of our pockets by creating money out of thin air in schemes like quantitative easing. So, when people complain about the lack of jobs; what they’re really saying is that the government is hurting the economy too much.

Taxes — all taxes — have a negative influence on the economy. But we really can’t get rid of them. We need the government, although we probably don’t need as much government as we have. Yet governments don’t shrink on their own; they only grow. New departments are created, requiring funding and causing more tax increases. Eventually, the people revolt or the economy reaches a point where it can’t support the government — and it collapses.

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Since we need our government, that means we need taxes, too. In fact, the Constitution gives the federal government the right to collect taxes. It says, “The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.”

So fine, let them collect their taxes and let them use them for the common defense and the general welfare of the United States. But that’s it. Let’s put an end to pork barrel spending, research grants for useless things and other wasteful government spending. Let’s stop giving millions away to our enemies, so that they can chant “Death to America.” Let’s stop with all the departments of the government that only exist to take away our freedoms and so that the bureaucrats can tell each other how important they are. Let’s have a reasonable government and reasonable taxes.

Maybe then, our economy could return to the robust, growing economy of our parents’ generation. We would see our children have a better life than we have and we could expect their children to have an even better life than that. Maybe then, the people of the United States of America would become prosperous once again.

Do you agree or disagree? Share your thoughts on taxes in the section below:

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  1. When government follows its mandate, its duty, and in the case of the US — the LAW, and prints its own money, there is no need for taxation. It is long proven that ALL taxation in the US pays interest to government debt held by private bankers. The Grace Commission proved this.

    Every dime. Not one dime of taxes goes to run government, pay for roads, build schools, or any of the other bullshit idiots and morons repeat because it was on TV. Government people get a credit card that the interest and interest only is paid by the people by taxes. Since FDR declared the US bankrupt the private bankers, the banking tribe, the British Crown by its talmudic banking has long taken over ALL US government.

    Interest does not exist. It is a fiction. Interest is nothing more than math calculations. Under Crown talmudic banking monetized DEBT is recorded by ink and paper. To be loaned out and repaid at face value plus interest. Except under Crown talmudic banking the interest is never ever created by the same ink and paper. So exponential growth is mandatory in order for the religion based criminal enterprise to keep working. Keep working for the Crown bankers. And no one else.

    This is why economic growth, GDP, and other factors are so important. If exponential growth stops, it all collapses.

    They literally play musical chairs with our lives. Under Crown talmudic banking there is never enough money to pay the interest. So someone, MANY, have to lose. Lose everything. And they ALWAYS lose to the banking tribe.

      • You personally can avoid much of the taxation by setting up a corporation(fiction). Main benefits are deductible business expenses and dividend income. I call it “Playing the game”.

        There are other complex and interesting arguments about not paying taxes. What is the definition of a “taxpayer”, citizenship, foreign earned income, or even earned income? I have to much to loose to play that game.

      • How do you escape? Educate yourself. Federal reserve bought the united states when we filed bankruptcy. You don’t have to pay taxes.

      • We are close. No mo Obama thank gawd

  2. You will not believe me, but there is no law that requires a citizen to pay an income tax. Enforcement is a scam.

    “Taxation is a matter of sovereignty” the Supreme Court has declared. That over which the government is not sovereign is not a suitable object for taxation.

    Liberty, as secured for the citizens by the Fifth and Fourteenth Amendments, includes the Right to Pursue a livelihood. Such Constitutional Rights are not suitable objects for taxation. The power to tax is the power to destroy.

    We, the Sovereign People, created this nation. If the government were sovereign, they could seize 100% of a citizen’s earnings and the citizen would be a slave. The Constitution would be stood on its head with just one law.

    Section one of the 1939 IRS code (Title 26) required all individuals who received income to pay the percentage as shown in the tabulated schedules. The 1954 rewriting of section one of the code required anyone with taxable income to pay according to the tables. If you calculate according to the tables, you have acquiesced to being a lawful taxpayer.

    Do not be foolish and rely upon this knowledge without doing a lot of thought. Ref.

    • Yes income tax is unconstitutional. But if you think enforcement is a scan just attempt not letting them steal their dues every year.

  3. The only thing I didn’t see included in here, is the amount of money that goes towards building roads, and buildings. While we would have more money to spend, we would also be lacking roads and other public services.

    • 99% of roads and public services are paid by local and state taxes or the gasoline tax for highway, so if all federal taxes were eliminated most roads and government services would still be provided.

      Even if all taxation was eliminated we’d have something called privately funded roads just like homes have private driveways.

      In a world without taxation all services that are demanded will be provided for but with efficiency and probably overall more cost effectiveness. If you want something you pay for it. There is nothing more fair than that.

    • Roads are paid for by the taxes on Gas and Diesel as well as tolls.
      Public Schools (Socialist Indoctrination Facilities) are funded by Property Taxes.
      Wars are funded from (Corperate or sales tax?).
      There are at least 8 Supreme Court decisions ruling the Federal Income Tax Unconstitutional.
      As an added bonus to abolishing the Income Tax, we’d no longer need an IRS. Don’t dismiss the massive savings to our National Budget there too. There have been lists compiled that name all the 1000’s of “Alphabet Soup” agencies that could disappear over night and no one would notice. That’d be a big discount on out tax burden as well.

    • Roads are funded by a constitutional excise tax on fuel.

  4. Why do you make the declaration that we “need the government”? Your article already proves that statement to be false, so why contradict yourself?

  5. These commenters are correct and another thing to remember is that the income tax came into being at the same time as the Federal Reserve, in 1913. No Fed, no taxes. The Fed is a private bank which lends to the US government every dollar in circulation and on which interest is paid to the Fed. It shouldn’t be spending which keeps the economy going; it should be a solid manufacturing base of good jobs which we used to have. The world needs to find a way to do away with private central banks issuing fiat (debt-based currencies) and make this type of banking completely and forever illegal. All the major economies of the world have this type of system. As’s Mike Rivero says, “All Wars are Bankers Wars.” It is an evil system designed to steal from and control populations.

    • Janis, you hit the nail on the head there. Another simple but educational tool is a cartoon on youtube called The American Dream.

  6. I see some taxes as good, but more on local and state levels. Roads, schools, libraries and hospitals. We need to end a lot of wasteful expenditures to help cut down taxes.

  7. The author’s case for having no taxes couldn’t pass muster at the 8th grade cafeteria boy’s table. I’m really curious about how they would define the “general welfare” of US citizens — earmark spending is part “promoting the general welfare.
    “Research grants for useless things” is a straw man set up to be knocked down. What would you consider “useless things”? Disease research? Environmental studies? Give me a break.
    The author’s biggest mistake is in following the (tax) money. It’s right in saying that when people spend more the economy grows, in other words, the only thing that grows the economy is demand. However, we live with a supply-side (Reaganite) economy — trickle-down economics. The wealthiest earners pay far less in taxes as a percentage of what they earn then the poor and middle class, and THAT is the problem.
    The only thing that really drives the economy is demand, and the US is in a crisis of demand, due to 30 plus years of supply-side Reagan economics, skyrocketing executive compensation from a shareholder-based economy and subsequent stagnant middle-class wages, erosion of workers’ rights, union busting, and “experiments” in “shrinking government,” such as we have seen recently in Kansas under Sam Brownback, and in Louisiana, under Bobby Jindal.
    In Jindal’s case, he gave away the store to private enterprise. He passed massive tax cuts for the rich, fired 40,000 full-time state workers, sold the state’s charity health care system to private for-profit enterprise, and cut state funding for education by more than half. After eight years, the result was the state in near-bankruptcy, no new net jobs, pension funds depleted; colleges and universities suffering heavy layoffs, with campus infrastructure in disrepair; and most of the public wealth handed out to bribe hazardous chemical companies into building their infrastructure in Louisiana, with little oversight or regulation.
    That’s what happens when you cut taxes, and it’s about to happen again, if Trump’s tax reform is passed. It is nothing but a massive transfer of the public wealth to the richest 1% in the country.

    • Thankfully you have your head on straight. This site has good articles but damn these ones like this that get Trump worshipers kill me.
      All presidents and Congress members screw the public in some way, just seems like this section in time of Republican majority is gonna kill us all.

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