Political Dysfunction – The IRS Detailed in Spades!

Exclamation MarkEnlighten me, how is the taxpayer to “understand and meet” “tax obligations” when the agency who collects those tax obligations refuses to answer questions, actively hinders transparency, denies accountability and refuses scrutiny?  Through forced taxation, collected by fear of the stick, America has been abused since the IRS was created out of whole cloth, not from the U.S. Constitution, but the demented minds of a president and complicit Congress.

Under the heading of “Statutory Authority,” we find the following:

The IRS is organized to carry out the responsibilities of the secretary of the Treasury under section 7801 of the Internal Revenue Code. The secretary has full authority to administer and enforce the internal revenue laws and has the power to create an agency to enforce these laws. The IRS was created based on this legislative grant.

Section 7803 of the Internal Revenue Code provides for the appointment of a commissioner of Internal Revenue to administer and supervise the execution and application of the internal revenue laws.”

Progressive

Progressive and progressivism is a political philosophy that empowers a more extensive and more intrusive government, a government without any shred of decency, and a government as intrusive as possible into your daily life.  Progressivism has been the catchphrase for all sorts of political hooliganism and liberty theft at all levels of government.  These abuses by the government have been made possible because, as everyone knows, progress, the root of progressivism, is a good thing; it is progress, right?  Not quite, according to the politicians and the bureaucrats who think they own you and me.Lemmings 1

Progress is defined as moving forward or onward towards the desired destination.  Also, progress can be advancement or development towards a better, or more complete, “modern condition.”  Archaic definitions sometimes provide critical insight into a word, and in this instance, the archaic meaning of progress was a state journey or official tour, especially by royalty.

Progressive means something relating to or characterized by progress without the political connotations, using new ideas, findings, or opportunities.  In the classroom, progressive relates to an educational theory marked by an emphasis on the individual child, informal class procedures, and encouraging self-expression to the point of sacrificing educational opportunities.  The meaning of progressive also refers to making progress, moving forward or advancing, increasing in severity or extent, expanding the base rate of something, and a few other definitions specific to the sciences of computers and lenses for glasses.Lemmings 4

President Woodrow Wilson (D) was a progressive, and many of his political detractors were regressive.  The distinction was drawn on a political scale to aid in differentiating and scorning political opponents concerned about the spread of government.  We need to be clear that any time anyone talks about progressive taxes, they discuss expanding the base tax rate.  Making tax increases sound more pleasant is a key to twisting the meaning of words and exercising tyranny on a population.

Regressive

As you might have probably guessed, regression is the exact opposite of progression.  Regressive relates to regression production, decreasing the rate as the base increases, and is characterized by simplifying structures in an evolutionary process.  Regression is the act of regressing. Regressing relates to the act of reasoning backward, moving backward to a previous and possibly worse or more primitive state.  It is also a privilege of going or coming back to something.Plato 2

Regressive is most used in refusing to cut taxes, so the opponents to “progressive” taxes are automatically regressive.  In actuality, progressive is all about increasing government size, government taxes, and government bureaucracy; thus, the opponents of progressive taxes should own and explain why being regressive is a good thing.  Yet, they never do, and representative governments across the globe are worse for this plastic language.  The consequences of ever bigger government and taxes, fees, surcharges, fines, etc., dreamed up as “progress.”

Tax Gap

Bait & SwitchDue to proposed legislation, the media has been quick to jump onto the tax bandwagon. The media are trying to drum up a lot of hype for the proposed bill, calling it fairness, catching the tax cheaters, working to bring “fairness” to the tax system, and progressing the tax system to close the loopholes improve tax enforcement.  The “tax gap;” is $600 million in mostly tax errors because the tax system is too complicated.  How do you tell the difference between tax cheaters and honest people trying to obey the tax authorities?  Therein lies the problem, to the IRS, everyone making an error is guilty until proven innocent, and either way, you will pay something to the IRS to get out of trouble.

What is the problem?  The IRS is going to use its newfound enforcement ability from this legislation to punish and abuse.  Congress is always talking about closing loopholes, but what they mean is allow political cronies and connections to keep doing what they are doing and force the rest of America to pay for the privilege of being abused.

Tax Enforcement

QuestionLong have I been concerned that the agencies of the Federal Government have become weapons against the citizenry.  With Lois Lerner and the 501 (C) (3) debacle still ongoing at the IRS, this concern about government weaponizing has only strengthened.  Yet, what do we find from politicians on both sides of the aisle; crickets, platitudes, double-speak, and an attitude of not caring.  What do we see from state and local government officials who are in a position to protect the citizen from run-away government, even less.  With the proposed legislation being kicked around, granting money to a Federal Agency with a history of sleight of hand, deviousness, and abuse of power, seems to be the worst mistake possible.  Why are the legislatures not taking the IRS to task and scrutinizing them more closely, ending the farrago of Lois Lerner and holding real people accountable for real crimes?

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

Gasoline Taxes – The Epitome of Forced Taxation and Government’s Broken Promises

Exclamation MarkI do not care that Alaska has not increased its gasoline taxes in 50-years.  Frankly, the fact that the Federal Government has gone 27.4 years without increasing the Federal Fuel Taxes is not a problem.  Nor that the Federal Government has to either get the current taxes renewed, or the Federal Gas Tax goes to $0.042 a gallon is not a tragedy, but a good thing.  Gas taxes are not the problem; the problem is that the fuel taxes, excise taxes, surcharges, and fees built into a gallon of gas that equals more than $1.00 per gallon, are never prioritized to the infrastructure projects the tax was collected initially to pay for!

IronyI find the following ironic; the Federal Gasoline Excise Tax is actually two taxes combined.  $0.01 per gallon is paid as the Leaking Underground Storage Tank (LUST) fee.  Why is this ironic; because the government LUSTs after all types of money to misappropriate.  Before creating acronyms, one would think that the government would consider how much of a joke those acronyms will make.  One of the seven deadly sins that are constantly causing scandals for politicians, LUST!  Yes, I find this tax acronym very ironic and applicable to the discussion on why the roads and other infrastructure is rated as a C- and falling.  I find LUST very appropriate to the discussion on the misappropriation of funds and how the government wants to increase taxes to pay for something already well funded but where the money is consistently diverted.

QuestionPlease note that each state will have additional taxes, fees, surcharges, and tax projects built into the cost of a gallon of gas or diesel, aviation, or propane.  Fuel taxes are a tax scheme that seems to always pay for anything but roads, bridges, and infrastructure.  Some basic facts regarding gas taxes:

      1. The average state gas tax is $0.3006 per gallon of gas.
      2. The Federal Government gets $0.184 per gallon of gas.
      3. States have added other fees to a gallon of gas, including:
          • Environmental
          • Underground storage (payable even if the tanks are above ground)
          • Inspection fees
          • Certification and other weights and measurement fees
      4. If your state taxes Ethanol, your gas taxes include the Ethanol tax, as well as a fuel tax.
      5. All fuels are hit with taxes, and some of those taxes are disproportionately assigned to heavier vehicles. For example, diesel has a different formula for taxes due to the trucking industry using roads and bridges more; at least, this is the excuse used to tax diesel differently.

Gas Tax Revenue – Poor Roads and Infrastructure

Since I was a kid in Maine, who closely observed the gas tax debate, I have wondered the same question.  “Why are the roads so poor if the government is collecting all these taxes on gasoline?”  Now, keep in mind the words of Justice Oliver Wendell Holmes Jr. “Taxes are the price of civilization.”  Meaning that to “enjoy” the pleasure of a free society, the government will levy taxes.  But, the money collected does not have to go for what the tax was intended to pay.  Hence the broken promises of gasoline taxes.

Plato 2Fuel taxes are used for a myriad of uses, and the priority is all confused about how to spend fuel taxes:

        1. Schools
        2. Pay down the National Debt
        3. Mass Transit
        4. Cleaning up underground fuel leaks
        5. Law Enforcement
        6. Environmental Protection
        7. Pension Shortfalls
        8. State Debts
        9. Federal Highway Trust Fund Deficits of all types
        10. Enforcement Costs, including weights and measurement certification
        11. Roads
        12. Bridges

Now, do not forget the other obstacle in fixing roads and bridges, the labor costs, especially if the workers are unionized.  The government bidding processes for projects, especially in all forms of construction, are obscenely complicated, which increases costs long before a shovel hits the dirt.  If unions are involved, the time for the project and expenses will, at a minimum, double before the project completes, creating deficit spending.  I am not cynical here; I have witnessed this occur too often not to admit the truth.

Working DollarChris LeDoux sings a song, “Working Man’s Dollar,” which tells the story and details the difference between a working man’s dollar and the dollar in other places.  The fuel tax was first adopted in Oregon, and the proceeds were earmarked only for fixing, maintaining, and building roads, bridges, and other travel infrastructures, like tunnels.  Except, the money never is prioritized to the failing roads, bridges, and infrastructure costs.  The working man’s dollar, collected through forced taxation, is not respected by the government authorized through the ballot box to allocate spending.

I was in Maricopa County when a stadium was pitched to the residents to be located in Scottsdale.  A gas tax hike was proposed as part of an overall tax plan to pay for the stadium.  I asked, “If the stadium was worth the investment, why not just sell bonds?”  I never got an answer.  Not every citizen was interested in the stadium, not all citizens were going to benefit from the stadium, but every citizen was being asked to help pay for a stadium.  The stadium in that election failed, but the ideas did not die; a new location was proposed, and the voters there accepted the stadium’s tax hikes.  Want a surprising non-surprise, the stadium is built, but the taxes have never gone away, including property, sales, and fuel taxes!  Where is that money going?

Bait & SwitchNow, the Federal Government has a bunch of fuel taxes and surcharges (taxes called a fee) about to expire.  The question every voter in America needs to ask themselves is this, “Did the government properly use the funds dedicated to infrastructure?”  If so, then the fuel taxes should continue at the Federal level.  If not, then the fuel taxes should cease, for the government refuses to spend money according to the purpose it was collected.  Every single state in the union should be asking the same question and answering accordingly.

I lived in Albuquerque, NM., for several years.  To get potholes fixed, you had to ruin your car in an accident involving the street, then sue the city, county, state, whatever for the insurance costs.  Only then was that particular patch of road deemed important enough to repair.  There are bone-jarring, teeth-rattling, car-destroying potholes all over Albuquerque.  These never get fixed because the city has been too busy dumping tax money into a rapid transit project that is barely used, overly expensive, and desperately not desired by the taxpaying citizens.  They had “ART” (Albuquerque Rapid Transit) crammed down their throats by a judge.  ART has been a disgrace from Day 1.  Yet, money keeps pouring into ART instead of the many roads, bridges, overpasses, and other infrastructure that desperately needs repair.  A friend of mine hit a pothole, doing 35mph, dented his rim almost 2”, ruined his front alignment, and cost him a considerable sum.  That pothole is still there, still causing dents, still eating tires, and the city cannot fix it, the state will not fix it, the county was supposed to fix it, the Indian reservation owns it, and the federal government makes the pothole worse every day by traffic of federal employees going to work.

Tax BurdenHence the reason why fuel taxes are considered a tax scheme!  If you pass the buck enough, nothing gets done, and the money collected can be used in other projects while responsibility is determined.  Except, there is no money to fix the problem when the responsibility is determined, and the wheel just keeps spinning around.  Are you sick and tired of the games politicians play, yet?  Now, imagine your electric bill going up to pay for the fuel taxes not paid for by electric car owners, and tell me about proper government action and accountability.  My friend could not sue because responsibility cannot be determined; his insurance would not pay for the damages because the road damaged his vehicle; guess who was out almost $10,000.

Tax Scheme 2Some states are changing how the gasoline and other fuel taxes, including electricity due to the rise in electric vehicles on the road, are being priced and collected.  However, the problem is not the tax; it’s the fact that the tax never pays for what it was intended to when collected.  Some states got an increase in fuel taxes through their state legislatures this year.  Other states and the Federal Government are taking fuel taxes up in the coming months or the next legislating session.  But, not a single politician, anywhere in America, has stepped up to state the obvious, the current taxes collected are sufficient to pay for roads and bridges; we have to allocate more of the current money collected to roads and bridges.

Broken Promises – Broken Roads and Bridges

Question 3Is the problem apparent?  How many of your state taxes, lotteries, and other fees are supposed to pay for education?  Yet, education always seems never to have enough money.  How many taxes and fees go into the Department of Motor Vehicles and Department of Transportation, all of which are supposed to pay for infrastructure, e.g., roads, tunnels, bridges, overpasses, highways, etc.?  How much is the pension crisis costing your state, driving taxes and fees upwards, but the money never is delivered to pay down and lessen the pension crisis?

I repeat, only for emphasis, “America does NOT have a cash collection problem; it has a spending problem.”  At all levels of government, the elected officials are acting worse than drunken sailors on a seven-day binge, and this behavior needs to cease!  We cannot spend our way out of the hole dug through deficit spending!  The answer is not allowing the government to steal more money from our pockets, but to demand the money taken is used for the purposes intended!

Tax SchemeWe must tie political decisions to misappropriate funds to the legislators and executives making the decisions.  Thus, holding accountable the people who are being poor managers of the people’s money.  More importantly, when re-election decisions are made, the media, the influencers, and the political parties need to report this information.  Being able to hide funding shenanigans and criminal activities should never occur; businesses cannot do this, the government should not be able to do this.  Audits, investigations, and transparency are critical to putting the right people out of office and into prison, and keeping the honest and faithful stewards in office and working.

Knowledge Check!The size of government must shrink to an affordable level, from the city to the Federal; every government body in America, including those non-Government agencies acting like government agencies (USPS), need to be forced onto a diet of less money!  There is no excuse for the government to be the size it has become.  There is no excuse why we, the owners of the government, cannot demand government shrink, become efficient, and keep the promises made regarding money collected, used appropriately, and ended at the time promised.

Angry Wet ChickenAs sure as carts to horses and ducks to water, a Federal tax, fee, or surcharge, will be found shortly on your electric bill to cover the costs of electric vehicles on the roads.  When the Federal government does this, the state, county, and city will jump in with both feet, claiming “fairness” and “equality” so everyone is “paying their fair share” of the costs for infrastructure.  It doesn’t matter that you do not own an electric vehicle; the government will help you finance one through increased taxes and misappropriated fees collected.  Just like the “Obama Phone” scheme being abused by many people and paid for by a small minority.  Broken promises indeed!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

$1.8 Trillion Annual Deficit – The Problems with Biden’s Budget

Angry Grizzly BearWith gratitude to the National Conference of State Legislatures (NCSL), their analysis of the proposed budget was broken down, and some sense was made.  Not that the news is logical, acceptable, or palatable, just that the budget documents were broken down, which was helpful.  We start with the most bass-ackwards aspect of the budget by asking one question, “Where is the money supposed to come from?”

The 2022 Budget Proposal left President Biden’s desk requesting Congress to spend $6 Trillion and add $1.8 Trillion in new deficit spending to the bloated debt the government already owes.  “Who is going to buy the bonds and make money on this debt?”  When a person employs a search engine, asking this exact question, many answers come forward, and some do not make any sense.

Peter Schiff stated:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Thus the first problem with America’s debt and proposed budget transparent; there is no money that government can spend unless it first forcefully removes it from the owner.  That is theft, or as we recently discussed, legalized theft.  The Supreme Court of the United States (SCOTUS) has ruled that legalized plunder, legal theft, or forced taxation are the price we pay for civilization, thus making legal the government’s actions to steal money.Government Largess

Let me be clear; I am not an economist.  I select several very bright and experienced people to help explain things to me.  However, I can help others with less interest in economics understand what is happening in America right now to answer the question put forward, “Who is buying America’s debt instruments?”  The simple answer is that the Federal Treasury is buying the debt instruments, as the whole world sells their bonds and other American debt instruments.  What the Federal Reserve is doing is called “monetizing debt.”

Monetizing Debt

Gravy Train 3The definition of monetized debt is as follows. “Debt monetization or monetary financing is the practice of a government borrowing money from the central bank to finance public spending instead of selling bonds to the private sector or raising taxes. It is often informally and pejoratively called printing money or money creation.”  Money can only be created in two ways: selling products and services and lending money where the borrower pays interest.  While there are many different debt instruments, i.e., credit card, home loan, student loan, bonds, Treasury Notes, etc., the principle remains the same: you either sell goods and services to make money or lend money and make money on the interest.

Why does monetizing debt matter?

Two simple reasons the government allows debt to be monetized.  To hide debt, it doesn’t want the public to know about, and to absorb cash on the market as a tool to fight inflation.  Here’s the problem, there is too much debt on the government’s books to hide it from the public any longer.  Add to that the sheer volumes of cash in the marketplace after handing out money during COVID, and the Federal Reserve will monetize debt.  Even if the chair of the Federal Reserve denies monetizing debt, debt is being monetized.Burning money - THE JOSIAH BARTLETT CENTER FOR PUBLIC POLICY

In short terms, your pocketbook is going to take another hit on the chin, and possibly two.  First, your interest rate on privately held debt, credit cards, student loans, homes, etc., is going to go up, all while making lenders nervous and refuse to lend money.  Second, inflation is already making the dollars held less valuable.

Inflation first; inflation is the devaluation of dollars.  The government floods the marketplace with cash, and the currency you hold will drop in value.  For example, recently the inflation was reported to have been 4.6% higher year-over-year.  This announcement was made in April 2021, so all the money you earned last year suddenly became 4.6% less valuable this year, all before the interest rate increases affected those dollars.Inflation - 8 Things Everyone Ought To Know.

Case in point, the US Government sent me $1000 in January; I held onto those funds due to a move that was coming and spent the money in June.  However, between January and June, inflation moved up at a steady pace, and when I went to spend that $1000, it was only worth $850.  That is the power of inflation in your pocket.

Have you asked for a credit increase recently and been denied?  What about your credit limits on your credit cards, have they shrunk?  Both are indicators that the lenders refuse to lend due to the tremendous risks caused by fiscal insanity in the Federal Government.  What about home loans, have you had to produce more documentation, prove more income, and work harder to qualify for a loan?  What about student debt?  The government controls the lending of student debt.  Even here, the Federal Government cannot demand a lender loan money to student’s and many students have found their college expenses grow, and their ability to borrow shrunk.Inflation pickpocket | Cayman Compass

In a simple fact of life, every household in America understands perfectly. When your credit scores go down, your ability to borrow reduces, and it becomes harder to meet all your bills every month.  Every city, county, state, and even the Federal Government should know this lesson, but they refuse to believe problems arise when credit scores go down.  All because those elected believe they can tax some more, and the money magically appears.

Does money magically appear in your pocket; of course not!  It must be earned through working, selling goods and services, or trading your time for employment with an employer for a paycheck.  Does the law allow you to write blank checks, kite checks, backdate checks, or simply float a check waiting for a future payday; of course not!  Yet, this is what the government is doing right now with your money.  The government is spending money, promising the lenders that a future payday will be theirs, but the government has to spend money to get money.  Does that excuse work for you when the electric company, gas company, cellphone, and other bills arrive?A Helpful Chart : How Inflation Changes Mortgage Rates

The most heartbreaking statement I have heard in a long time was recently made by a physician’s assistant, who claimed, “Aren’t we all just one paycheck from disaster?”  The simple truth, mostly, yes!  Studies exist that talk about financial resiliency in America.  Financial resiliency is all about being able to weather a patch of trouble without losing your possessions in bankruptcy.  The conclusions were all but unanimous. Along with most industrial nations, America has no financial resiliency due to government fiscal policies that hinder saving money and the need to live on credit cards to keep the basics of life paid for each month.

When inflation is stealing the value of your money, no wage can compete with government theft, all before taxes.  Add in tax laws that are counter-productive, job-killing, and increase the cost of doing business, and the job you have becomes tenuous at best.  Add in the hidden debts the government is trying to hide, and nobody in America is making money.

QuestionWhat about those who consider themselves “Rich?”

The same problems you are having with inflation are the same problems everyone is having with inflation.  Let’s go back to my $1000 that became $850 through six months of inflation.  We all spend the same money, and inflation is killing everyone’s dollar equally!  Hence, I beg you, do not allow the media hype about rich versus poor to derail the point.  Inflation and monetized debt are killing the US Dollar, which is why so many foreign investors have dumped their US Debt instruments for safer financial shores.

While some people have more financial resiliency than others, everyone’s dollar is dropping in value.  Inflation and low financial resiliency mean making budget cuts to charities, hiring someone to maintain a lawn, and a host of other ways and means American’s share our money.  It can mean turning off services, weighing how much fuel can be used, and a host of other belt-tightening decisions.  All things the government should first be doing, and they refuse.24+ Inspirational Quotes For Unemployed - Audi Quote

Yours and my liberty and freedoms depend upon stable economic policy, firm fiscal policies, and elected officials scrutinizing the government for waste, fraud, and abuse.  Yet, what do we regularly find; fraud, waste, and abuse!  The Department of Defense has lost multiple trillions of dollars; not a single politician is asking for an audit and an explanation or is willing to withhold additional appropriations until the lost money is accounted for.  The Department of Veterans Affairs continues to mismanage funds, misappropriate funds, and waste money like overripe fruit; yet, still, we have zero interest from the politicians elected to scrutinize government.

I repeat Peter Schiff, only for emphasis:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Inflation Quotes | Inflation Sayings | Inflation Picture Quotes - Page 2In redistributing your money, the government has proven they are the problem, and the solution begins locally!  Change your mayor, city council, county board, school boards, and every other elected official.  Getting the local governments in fiscal shape allows state governments to begin practicing fiscal health and sanity.  Then, we put people into the Federal Office more interested in scrutinizing the government than in writing endless laws and abdicating their legislative role to the executive bureaucrats and the judicial branch.

Knowledge Check!The budget put forth by President Biden is the height of insane, and I have only covered less than 1/10th of the budget problems in this article.  Granted, I covered the most egregious problem, but the fact that the legislative branch is even negotiating a compromise is beyond insanity and borders on criminal negligence!  We, each citizen of a representative government, must stand and tell our representatives NO MORE!  No more fiscal insanity, borrowing to buy votes, entering into debt obligations that make captives of unborn millions of other people.  No more will we allow them to buy votes to maintain power.  End the financial abuse of the taxpayer; your wallet will thank you!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

Did you hear? The IRS Edition

Millstone of Designed IncompetenceFLASH:  20 May 2021, President Biden wants to spend $80 Billion on expanding the workforce of the IRS by 87,000 new employees over 10-years.  Riddle me this, $919,540.23 is the approximate amount per employee; Would someone tell me why the IRS needs to spend so much per employee?  Does this announcement seem particularly worrisome?  If not, please cease reading now, as I will never convince you to be wary of the Department of Internal Revenue Service. However, with its incredible price tag, if this announcement worries you, let’s discuss a few topics an expanded IRS means.

Where is the money to expand the IRS coming from?

Simple question.  I want clear and concise answers.  While President Biden thinks some of those funds will come from “catching tax cheats,” cheating taxes is a game for lawyers, and I want to know what the president means by “Tax Cheats.”  For example, will he further chase the rich people who are not paying their “fair share;” if so, when will Biden and Obama belly up and write a check for all the back taxes they owe?  When will the Clinton Machine be forced to become accountable for all the tax money avoided?  Are “tax cheats” regular people who missed a box, forgot to include some income, or cannot fathom how to fill out their taxes and made honest mistakes?IRS

Until Big-Tech did an excellent job of cleaning OIG reports for the IRS, I used to have an OIG report claiming that the Federal Employees owing the most in back taxes was the IRS.  Are they in the “Tax Cheat” category, or will the IRS employees continue to be exempt from audits and “fair share” taxpaying because the agency is overwhelming voting Democrat in every election?  The more I dig into the IRS; the more questions arise about “fairness,” transparency, accountability, and responsibility.

Politicized or unpoliticized, the IRS is a weapon.

Ziggy - IRS Non SequiturThere is a massive problem in the IRS; the “IRS Targeting Controversy” has never been settled at the IRS.  On 09 Feb 2018, the last non-profit targeting case was settled. The plaintiff sees no remuneration for the legal fees. The government had to admit it was wrong to target non-profits based upon political leanings.  The IRS is hoping lawmakers will see this last settlement and give them a break.  Yet, the core problems of being or not being a political weapon, the core complaint of the scandal, was never addressed!  The leadership in Congress stopped scrutinizing, and the IRS got away with browbeating people based upon political leaning.

Never forget, Lois Lerner, the IRS official at the center of the non-profit targeting scandal, who had contact with the U.S. President (Obama), pled the Fifth Amendment, and none of the elected officials did anything to get to the truth!  I will not allow the elected representatives off the hook to enable the IRS to become a weapon or remain a political animal!  America deserves better and can only obtain better through asking questions and demanding concise and truthful answers after transparent audits and investigations that conclude with punishment for wrongdoing!

Non-Sequitur - GovernmentThis leads to a simple question: Is the IRS a political weapon for Democrats and Liberals, or is it an apolitical unit of the government?  Let us test the current IRS leadership for a potential answer to this question.  17 June 2021, The Daily Signal reports that the IRS denied tax exemption to a Christian Group because the Bible the group adheres to is associated with the GOP (Republicans).  If that decision has you scratching your head, wait until you check out the rest of the story.

From The Daily Signal story, we find the following pretzel logic from the IRS.  The link is live; see the letter for yourself!

In an 18 May denial letter, IRS Exempt Organizations Director Stephen A. Martin said Christians Engaged is involved in “prohibited political campaign intervention” and “operate[s] for a substantial non-exempt private purpose and for the private interests of the [Republican Party].”

A “legend” at the top of the letter shows nine letters of the alphabet being used as shorthand to represent something. In this letter’s example, oddly, “D” represented “Republican.”

Specifically, you educate Christians on what the Bible says in areas where they can be instrumental, including the areas of sanctity of life, the definition of marriage, biblical justice, freedom of speech, defense, and borders and immigration, U.S. and Israel relations,” Martin wrote. “The Bible teachings are typically affiliated with the D party and candidates. This disqualifies you from exemption under IRS Section 50I(c)(3).”

Ziggy - IRS AuditTo me, it matters not that the letter D represents republican.  America is a Republic, and any political action taken can be connected to a Republican government.  Not necessarily the “GOP” as the Republican Political Party.  If the IRS official cannot ask questions, the voices inside his head speak louder than his abilities to make logical decisions. In that case, he does NOT deserve his position, having been promoted above his maximum level of incompetence!  In making this decision, the IRS official has declared that the democratic party does not ever use biblical teachings to reach conclusions.  Is Speaker Pelosi and President Biden aware of this fundamental change in political foundations?

Feel free to tell me in the comments section, do you feel the IRS Non-Profit Targeting Scandal of 2010 thru 2013 has been handled effectively and properly closed?  Better still, was it appropriate for Lois Lerner to plead the Fifth Amendment and not have legal actions taken? Finally, do you honestly trust the IRS to be an apolitical, unpoliticized, and neutral agency engaged in honest and forthright government business?

Details about the IRS.

Government Largess 3From irs.gov, we find the following, and it raises more questions than answers.  Under the heading, “The IRS Mission,” we find the following, poor grammar, wrong sentences, and detestable language and all:

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

This mission statement describes our role and the public’s expectation about how we should perform that role.

            • In the United States, the Congress passes tax laws and requires taxpayers to comply.
            • The taxpayer’s role is to understand and meet his or her tax obligations.
            • The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply pay their fair share.”

Would someone at the IRS tell me, how are you “providing top quality service” when you cannot reach the IRS by phone, the office hours are limited, and answers are forced to come from hired third parties?  I have been forced into multiple-day issues with the IRS Website, no answers, no contact information, and no assistance until I hired someone who answered my questions at $100 an hour.  If the IRS reads this article, that is not how you define “top quality service.”

QuestionWhat is “fair share?”  Using this phrase, the IRS declares it is already politicizing the payment of taxes, as the expression “fair share” has been captured for more than a decade by the Democratic Party.  Using this phrase in your mission statement demands a straight and correct answer in the rest of your marketing materials.  Yet, no explanation has ever been found.

Enlighten me, the second bullet point, how is the taxpayer to “understand and meet” “tax obligations” when the agency who collects those tax obligations refuses to answer questions, actively hinders transparency, denies accountability and refuses scrutiny?  What are “compliant taxpayers?”  Through forced taxation, collected by fear of the stick, America has been abused since the IRS was created out of whole cloth, not from the U.S. Constitution, but the demented minds of a president and complicit Congress.

Under the heading of “Statutory Authority,” we find the following:

The IRS is organized to carry out the responsibilities of the secretary of the Treasury under section 7801 of the Internal Revenue Code. The secretary has full authority to administer and enforce the internal revenue laws and has the power to create an agency to enforce these laws. The IRS was created based on this legislative grant.

Section 7803 of the Internal Revenue Code provides for the appointment of a commissioner of Internal Revenue to administer and supervise the execution and application of the internal revenue laws.”

Gravy TrainAt least the grammar and sentence structure are better. However, having read sections 7801 and 7803 of the Internal Revenue Code, I have serious reservations.  For example, how did the IRS become the sole government agency in charge of defining an employee, controlling the employee/employer relationship, and acting as the force behind employment law?  When did Congress provide you with this authority?

Dont Tread On MeI repeat, only for emphasis, the following:
“The IRS governs every action made in an employment situation, and the IRS has given great latitude to the employer, making you the property of the IRS, with control granted to your employer. As a result, the IRS remains a danger to every American and the globe.  Why is the United States the only industrialized nation to not allow options to the employee/employer relationship, squashing innovation, curtailing small business opportunities, and unequally tipping the scales for large organizations?  Look to the IRS!  Want to point fingers, thank President Woodrow Wilson (D), his complicit Congress, and his executive orders!”

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Progressive vs. Regressive – Sales Taxes

Flying BuffaloAny time a debate about taxes arises, the terms progressive and regressive get thrown around like popcorn in a food fight.  Whether or not those speaking, even know, or care about the definitions, implications, and repercussions are different topics and one I will not hazard a guess.  My intent here is to help you know and better understand the terminology as we discuss the broader topic, sales taxes.  Please note, since the early 1900s, the word progress has been twisted by tyrants, plasticized by the media, and manipulated into means one thing to one person and a different thing to a politician.  Of all the terms plasticized for tyranny, progress is one of the most egregious examples.  Just like the term “Buffalo-wings.”

Progressive

Progressive and progressivism is a political philosophy that empowers a more extensive and more intrusive government, a government without any shred of decency, and a government that is as intrusive as possible into your daily life.  Progressivism has been the catchphrase for all sorts of political hooliganism and liberty theft at all levels of government.  These abuses by the government have been made possible because, as everyone knows, progress, the root of progressivism, is a good thing.Angry Wet Chicken

Progress is defined as moving forward or onward towards the desired destination.  Also, progress can be advancement or development towards a better, or more complete, “modern condition.”  Archaic definitions sometimes provide critical insight into a word, and in this instance, the archaic meaning of progress was a state journey or official tour, especially by royalty.

Without the political connotations, Progressive means something relating to or characterized by progress, making use of new ideas, findings, or opportunities.  In the classroom, progressive relates to an educational theory marked by an emphasis on the individual child, informal class procedures, and encouraging self-expression to the point of sacrificing educational opportunities.  The meaning of progressive also refers to making progress, moving forward or advancing, increasing in severity or extent, expanding the base rate of something, and a few other definitions specific to the sciences of computers and lenses for glasses.Angry Wet Chicken 2

President Woodrow Wilson (D) was a progressive, and many of his political detractors were regressive.  The distinction was drawn on a political scale to aid in differentiating and scorning political opponents who were concerned about the spread of government.  We need to be clear, any time anyone talks about progressive taxes, they are discussing expanding the base tax rate.  Making tax increases sound more pleasant is a key to twisting the meaning of words and exercising tyranny on a population.

Regressive

As you might have probably guessed, regression is the exact opposite of progression.  Regressive as an adjective relates to the production of regression, decreasing the rate as the base increases, and is characterized by simplification of structures in an evolutionary process.  Regression is the action of regressing, and regressing relates to the act of reasoning backward, moving backward to a previous, and possibly worse or more primitive state, but it is also a privilege of going or coming back to something.

Emotions and Language

Emtional Investment CycleThe terms progressive and regressive are a perfect example of how emotions and language mix.  Without knowing all the definitions of a word, people will choose to use the sound of the word to decide whether the word sounds harsh or pleasant.  For example, progression sounds good, and regression sounds bad, but progress has roots in royalty taking a trip, and regression is a privilege or returning.  Hence, one of the main themes in these articles has been and continues to be how to control your emotions to improve your decision-making, the need to read, the opportunity to learn and keep learning words to empower conversation and knowledge.Apathy

When emotions rule, people like President Woodrow Wilson, Franklin Delano Roosevelt, George Bush II, and many others with conspiring congresses get away with fundamentally destroying the fabric of America.  One of the tricks used against the citizens of America and in many democratically elected governments across the globe has been using language and emotions to enact reigns of tyranny.  Let us face facts, the IRS and the Federal Income Tax are not progressive; America did not move forward by paying a tax that fundamentally hurts people in their wallets.  Education reform and progressive schools did not improve America’s ability to compete globally on reading, writing, and arithmetic.  The progressive ideas from the late 1800s to shut down literacy among government-mandated schools did not improve America!  Frankly, we should count ourselves lucky to have the opportunity to regress on these fronts.

Sales Taxes

Bird of PreyOf all the progressive ideas needing to be eliminated, the sales tax sits at the highest pinnacle for regression.  Consider this, in states with the highest sales taxes, the sales tax is a pyramid where the final consumer winds up paying taxes on business-to-business transactions, dynamically increasing the price of the final goods or services delivered.  Business A buys raw goods from Business B and sells these goods to Business C to make small parts.  Business A buys these goods from Business C and sells them as finished goods to a consumer.  In a sales tax pyramid, the government gets paid at the end of every transaction; thus, a product in Vermont will be less expensive than a product in South Dakota, due precisely to the sales taxes paid by Businesses AB, B, and C during the manufacturing process.  Thus, the top five states in the United States with the highest sales taxes have a tax pyramid scheme in place, and the end consumer pays through the nose for everything!

In states with a less broad sales tax base, the sales tax remains egregious but more silent in how it steals your money!  According to the states with tax pyramid schemes, those with a less broad sales tax base are considered regressive, and those with the highest sales tax base are called progressive.  Either way, the sales tax continues to be the silent killer of ingenuity, innovation, job growth, and so much more.  Because people expect to pay a sales tax as a condition of making a purchase, the sales tax has become the majority of the fuel price paid to power a car, the hinge upon where jobs are produced, and part of the reasoning for populations to flee from.Plato 3

From an article on sales taxes by the Tax Foundation, we find the following important information:

“Narrow sales tax bases reduce collections, but more importantly, they make the tax less neutral and less economically efficient. Many states exempt certain goods (like groceries or clothing) from the sales tax for political reasons, excluding many consumer services (such as dry cleaning, haircuts, or tax preparation) largely by historical accident. Most states instituted their sales taxes during the Great Depression when services made up a much smaller portion of the economy. Since then, the portion of total U.S. personal consumption dedicated to services has grown significantly, while the purchase of goods has declined. This trend has contributed to the erosion of states’ sales tax bases over time, an unintentional base narrowing that puts upward pressure on sales tax rates.

Remember, sales taxes going up are considered progress. Reducing or eliminating the sales tax, which is the right path forward, is deemed to be regressive, based solely upon the sound of the terms being used.  Broader tax bases are not equitable, but many economists, especially those Keynesian Devotees, will claim broader tax bases and pyramid tax schemes are progressive, equitable, and helps the rich pay their “fair share.”  How can a person tell that sales tax schemes do not work to make “equitable” tax bases; “Curiously, a policy expressly designed to inject progressivity into sales taxes—an exemption for groceries—largely fails to accomplish its purpose. Studies suggest that the exclusion of groceries beyond the necessary exemption for food purchased using SNAP or WIC does not favor lower earners.”

Plato 2While the Tax Foundation does an admirable job pitching for “right-sizing” the tax base to make sales taxes more “equitable,” they miss the forest for the tree.  Sales taxes are a silent killer and need to be regressed from American purchases at the earliest opportunity!  Taxes never produce progress!  Write that on your hand, and use that hand to correct the behavior of politicians who want “progressive taxes,” a “federal sales tax,” or want to improve tax burdens progressively.  When did American goods stop being traded, and manufacturing jobs were exported when the income tax started!  Why do people not want to live where they pay high sales taxes because of the progressive nature of sales taxes, the other progressive tax structures, and the only entity winning is the government.

Knowledge Check!America, we need to regress from the state where the income and sales taxes have taken us.  We cannot afford the government largess stolen from workers anymore.  We cannot afford the size of local, county, state, and federal governments.  Until the taxes are regressed, which would be a huge opportunity to realize, we will continue to be treated as the property of the government, and I, for one, am done being owned and forced into indentured servitude just to pay for the government who abuses me!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.