Other Unrelated Tax Ideas
 
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FairTax

This space is reserved to discuss other unrelated tax ideas and to give links to their websites:

There are several websites that relate to the fact that the income tax as "practiced" in the United States is not according to law and is in violation of the Constitution. It may be a noble and nice exercise in futility to fight the IRS and there is most likely important truth in the opinions and evidence presented, but in virtually all instances of people opposing their taxing agencies, the governments involved have used abusive methods to clobber the protesting taxpayers into submission in their desperate and abusive efforts to keep the tax systems in place as they are. The fact is that revenue must be created for governments to be able to pay for the public expenditures they incurr. Fighting the current systems of taxation may be very interesting on the merits, but without proposing alternatives for revenue generation, all these efforts are quite futile. AutomaticTax.com is a very attractive alternative and would be very detrimental for all those who benefit from keeping the current systems of taxation in place.

A website that explains the futility of "Anti-IRS Theories a.k.a. Tax Protester Junk is here: http://www.quatloos.com/taxscams/taxprot.htm

Other tax reform proposals:

www.FairTax.com is a tax reform movement with considerable support from the public and from several legislators and some members of academia. A very complete review of this proposed tax reform can be found at Wikipedia: http://en.wikipedia.org/wiki/FairTax .
Also see: http://en.wikipedia.org/wiki/Americans_For_Fair_Taxation .

My opinion about Fair Tax:
Nice idea in principle but totally useless in practice because the incentive to evade the tax is much too attractive. The proposed 23% inclusive tax means that the 23% tax is included in the purchase price of goods and this means that an item sold for $100 with the 23% tax included has an original cost before tax of $77 . The total selling price consists then of $77 worth of goods and $23 tax for a total of $100. In terms of conventional sales tax that means over 33% sales tax (33.48%), and in most States there is an additional State sales tax on top of that. In California there is a minimum of 7.25% State sales tax on top of the 33.48% or a total sales tax on top of goods of over 40.75%. A 40.75% sales tax on goods will prove very difficult to collect because of millions of people trying to get around such a large sales tax. A very widespread underground black market of taxfree goods will develop and that in turn will require an army of tax policing and enforcement and prosecution and jailing of individuals caught for tax evasion.
         Another big problem would be in the transition from the current absolutely idiotic IRS 65,000 page income tax system to this Fair Tax system because it will put literally millions of people out of work that currently are all performing utterly unproductive, and therefore, useless jobs in connection with the current IRS tax system (accountants, IRS employees, tax lawyers, printers of millions of tax forms etc.). To put that many people out of work in a short span of time will cause a major economic depression. That is also a problem with other tax reform pipedreams. Automatic Tax avoids these pitfalls by proposing a transition period of 20 years with a gradual transition of 20 yearly incremental increases of 0.25% per year for a total of the eventual 5% total Automatic Tax. I could almost believe that this FairTax had been dreamt up by some folks that have a big stake in keeping the current complicated tax system in place by sucking a lot of people, that want to get rid of the IRS, into a number of very dumb tax reform proposals on which they can unleash their tax reform energy. If I were to belong to these vested interests that would want to maintain the status-quo and possibly even complicate taxation even more, then I would even fund and help promote the organizations and people that promote a dumb tax proposal that has no chance of succeeding. Maybe that is what is happening. Who knows.