johnwk
01-30-2009, 09:57 PM
1.
Immediately suspend the tax upon earned wages and make up the shortfall with a federal luxury tax upon specifically chosen articles of luxury ___ a kind of tax our founding fathers intended in which the market place determines the allowable limit of tax on each articles selected by Congress.
As noted in Federalist 21. (http://avalon.law.yale.edu/18th_century/fed21.asp)
It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue. When applied to this object, the saying is as just as it is witty, that, "in political arithmetic, two and two do not always make four .'' If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them.
For a recent example of this tax see The Omnibus Budget Reconciliation Act of 1990 (http://thomas.loc.gov/cgi-bin/query/z?c101:H.R.5835:http://thomas.loc.gov/cgi-bin/query/D?c101:4:./temp/~c101exSUxe) click on 4. “Omnibus Budget Reconciliation Act of 1990 (Enrolled as Agreed to or Passed by Both House and Senate)[H.R.5835.ENR]”, after which you may scroll down to TITLE XI--REVENUE PROVISIONS, and then click on :
PART III--TAXES ON LUXURY ITEMS
`SEC. 4001. PASSENGER VEHICLES.
There is hereby imposed on the 1st retail sale of any passenger vehicle a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $30,000.
`SEC. 4002. BOATS.
There is hereby imposed on the 1st retail sale of any boat a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $100,000.
`SEC. 4003. AIRCRAFT.
There is hereby imposed on the 1st retail sale of any aircraft a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $250,000.
`SEC. 4006. JEWELRY.
There is hereby imposed on the 1st retail sale of any jewelry a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $10,000.
`SEC. 4007. FURS.
There is hereby imposed on the 1st retail sale of the following articles a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $10,000:
Note that the outrageous 10 percent imposed by Congress because of its greed caused diminishes sales of those consumer articles and adversely affected the luxury boat building industry which in turn immediately prompted Congress to repeal the tax in 1991 (http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=102&session=1&vote=00263)
Had the tax on luxury boats only been one or two percent it probably would have been paid without much resistance. But, the tax was an outrageous 10 percent and the market place responded to limit Congress‘s greedy desire for revenue. As documented in Federalist No. 21, our founding fathers carefully devised a consumption tax plan allowing the market place to determine the amount of tax on each article chosen; prevented an “extension of the revenue”; and, avoided the kind of class warfare Congress now engaged in under its current method of filling the nationals treasury.
2.
Immediately end the tax calculated from the profits which business and industry earns, and, also end the tax calculated from the returns of invested capital.
The above can be accomplished by adopting the following words in our Constitution:
The Sixteenth Amendment is hereby repealed and Congress is henceforth forbidden to lay ``any`` tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money
This stimulant would “stimulate” the economy beyond imagination and have foreigners fighting each other to immediately “invest” in America! Of course, our management freaks in Congress would loose much of their iron fisted control over the American People.
Lost revenue, if the above were to be adopted, can be made up with a nondiscriminatory across the board tax upon imports, such as the tonnage taxes which our founding fathers used to fill the national treasury. And if there is a shortfall and Congress still needs additional revenue, it may do so by the direct tax apportioned which our founding fathers put into the Constitution for such emergencies.
The direct apportioned tax requires Congress to determine a specific sum of money to be raised, and then requires Congress to determine each state’s share of that burden by the following formula:
Our Constitution’s fair share formula for direct taxes when laid by Congress!
States’ population
--------------------------- X SUM TO BE RAISED = STATE’S SHARE
Total U.S. Population
Once each state’s share of the total sum to be raised by Congress is determined by our Constitution‘s fair share formula, our founding fathers intended Congress to send a bill to each state for payment, leaving the various state Governors and Legislatures with the responsibility of transferring the state’s share from their state treasury into the federal treasury, or raising additional taxes within the state and then transferring that money into the federal treasury. Of course, this tax upon the states would place an unwanted burden upon every state’s legislature and Governor and they would suddenly have a very real interest in seeing to it that Congress lives within a budget which may be supplied from imposts, duties and miscellaneous excises taxes, including the federal luxury tax upon specifically chosen articles of luxury mentioned above.
Bottom line is, our founding fathers tax plan providing the economic stimulus under which America became the economic marvel of the world, when it was followed, and did so because it controlled Congress rather than allowing Congress control the people.
Regards,
JWK
“…..with all these blessings, what more is necessary to make us a happy and a prosperous people? Still one thing more, fellow-citizens—a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicities“. Thomas Jefferson, First Inaugural Address
Immediately suspend the tax upon earned wages and make up the shortfall with a federal luxury tax upon specifically chosen articles of luxury ___ a kind of tax our founding fathers intended in which the market place determines the allowable limit of tax on each articles selected by Congress.
As noted in Federalist 21. (http://avalon.law.yale.edu/18th_century/fed21.asp)
It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue. When applied to this object, the saying is as just as it is witty, that, "in political arithmetic, two and two do not always make four .'' If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them.
For a recent example of this tax see The Omnibus Budget Reconciliation Act of 1990 (http://thomas.loc.gov/cgi-bin/query/z?c101:H.R.5835:http://thomas.loc.gov/cgi-bin/query/D?c101:4:./temp/~c101exSUxe) click on 4. “Omnibus Budget Reconciliation Act of 1990 (Enrolled as Agreed to or Passed by Both House and Senate)[H.R.5835.ENR]”, after which you may scroll down to TITLE XI--REVENUE PROVISIONS, and then click on :
PART III--TAXES ON LUXURY ITEMS
`SEC. 4001. PASSENGER VEHICLES.
There is hereby imposed on the 1st retail sale of any passenger vehicle a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $30,000.
`SEC. 4002. BOATS.
There is hereby imposed on the 1st retail sale of any boat a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $100,000.
`SEC. 4003. AIRCRAFT.
There is hereby imposed on the 1st retail sale of any aircraft a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $250,000.
`SEC. 4006. JEWELRY.
There is hereby imposed on the 1st retail sale of any jewelry a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $10,000.
`SEC. 4007. FURS.
There is hereby imposed on the 1st retail sale of the following articles a tax equal to 10 percent of the price for which so sold to the extent such price exceeds $10,000:
Note that the outrageous 10 percent imposed by Congress because of its greed caused diminishes sales of those consumer articles and adversely affected the luxury boat building industry which in turn immediately prompted Congress to repeal the tax in 1991 (http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=102&session=1&vote=00263)
Had the tax on luxury boats only been one or two percent it probably would have been paid without much resistance. But, the tax was an outrageous 10 percent and the market place responded to limit Congress‘s greedy desire for revenue. As documented in Federalist No. 21, our founding fathers carefully devised a consumption tax plan allowing the market place to determine the amount of tax on each article chosen; prevented an “extension of the revenue”; and, avoided the kind of class warfare Congress now engaged in under its current method of filling the nationals treasury.
2.
Immediately end the tax calculated from the profits which business and industry earns, and, also end the tax calculated from the returns of invested capital.
The above can be accomplished by adopting the following words in our Constitution:
The Sixteenth Amendment is hereby repealed and Congress is henceforth forbidden to lay ``any`` tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money
This stimulant would “stimulate” the economy beyond imagination and have foreigners fighting each other to immediately “invest” in America! Of course, our management freaks in Congress would loose much of their iron fisted control over the American People.
Lost revenue, if the above were to be adopted, can be made up with a nondiscriminatory across the board tax upon imports, such as the tonnage taxes which our founding fathers used to fill the national treasury. And if there is a shortfall and Congress still needs additional revenue, it may do so by the direct tax apportioned which our founding fathers put into the Constitution for such emergencies.
The direct apportioned tax requires Congress to determine a specific sum of money to be raised, and then requires Congress to determine each state’s share of that burden by the following formula:
Our Constitution’s fair share formula for direct taxes when laid by Congress!
States’ population
--------------------------- X SUM TO BE RAISED = STATE’S SHARE
Total U.S. Population
Once each state’s share of the total sum to be raised by Congress is determined by our Constitution‘s fair share formula, our founding fathers intended Congress to send a bill to each state for payment, leaving the various state Governors and Legislatures with the responsibility of transferring the state’s share from their state treasury into the federal treasury, or raising additional taxes within the state and then transferring that money into the federal treasury. Of course, this tax upon the states would place an unwanted burden upon every state’s legislature and Governor and they would suddenly have a very real interest in seeing to it that Congress lives within a budget which may be supplied from imposts, duties and miscellaneous excises taxes, including the federal luxury tax upon specifically chosen articles of luxury mentioned above.
Bottom line is, our founding fathers tax plan providing the economic stimulus under which America became the economic marvel of the world, when it was followed, and did so because it controlled Congress rather than allowing Congress control the people.
Regards,
JWK
“…..with all these blessings, what more is necessary to make us a happy and a prosperous people? Still one thing more, fellow-citizens—a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicities“. Thomas Jefferson, First Inaugural Address