If the income tax was abolished...

[water22]

If the federal government abolished the income tax, the US would default on its debt. When someone defaults his assets are liquidated to his creditors. Does this mean the Chinese could claim the Capitol building and the White House as part of the repayment deal?

[bluesc]

The Chinese wouldn't be able to successfully claim a clipboard from a local FBI office, let alone a federal building.

[Zippyjuan]

Govenment debt is unsecured- nobody would have any claims to government property. Debt holders would have to file suit to try to get anything back.

[CaptUSA]

Ok, does this mean fire11 isn't even trying anymore??? Water22??

[bluesc]

Ok, does this mean fire11 isn't even trying anymore??? Water22??

Ha. Totally missed that.

[VBRonPaulFan]

The FedGov wouldn't default on their debt, they'd either

A) print up more money to cover their bills and just dilute the value of the dollar or
B) cut back spending significantly to balance the budget.

eliminating the income tax doesn't necessarily equate to a default.

[water22]

The FedGov wouldn't default on their debt, they'd either

A) print up more money to cover their bills and just dilute the value of the dollar or
B) cut back spending significantly to balance the budget.

eliminating the income tax doesn't necessarily equate to a default.

B will never happen. Ever.

[awake]

Send the people who ran up that debt to China, let them work it off...joking.

[ctiger2]

The FedGov wouldn't default on their debt, they'd either

A) print up more money to cover their bills and just dilute the value of the dollar or

Printing money IS defaulting.


If the federal government abolished the income tax, the US would default on its debt. When someone defaults his assets are liquidated to his creditors. Does this mean the Chinese could claim the Capitol building and the White House as part of the repayment deal?

Not when it's a Govt. They would just say F off.

[DamianTV]

If I owed my neighbor a hundred bucks, and they died, does someone else get to claim that I owe them money on behalf of my recently deceased neighbor?

[Elwar]

The income tax is a small percentage of our annual revenue.

If the income tax was ended, our economy would jump through the roof. Productivity would rise and the revenue that was lost from the income tax would quickly be replaced by the rise in the economy.

Our debt to China would be a small pittance compared to the huge economy that we would have.

[seraphson]

If the federal government abolished the income tax, the US would default on its debt. When someone defaults his assets are liquidated to his creditors. Does this mean the Chinese could claim the Capitol building and the White House as part of the repayment deal?

Not if you simultaneously cut spending!
https://encrypted-tbn3.google.com/images?q=tbn:ANd9GcQsPDFjVe0Q6Z1ky9tAErVjyviXDuE2h cQFU_FcC8CTccd-jPD6

[NikolayaRadchenkova]

The income tax is a small percentage of our annual revenue.

http://www.facingup.org/files/images/facingup_revenue_sources.png

Almost half of federal revenue is from individual income taxes. Add in corporate taxes and payroll taxes and it's pretty much all federal revenue that is taken from individual and corporate income.

[DamianTV]

Just before Prohibition, 50% of the Federal Govts income came from Taxes on Alcohol alone! My my, how far we've come.

---

If the Income Tax was Abolished, it would be the first time since 1913 that the Common Man paid the same in taxes as the Rich Money Manipulators.

[mrsat_98]

If the income tax was abolished... I still would not owe any .

[TheBlackPeterSchiff]

Man if the income tax ended my check would be so lovely. Thats like a 1400 dollar a month raise.

[DamianTV]

I dont even make 1400 a month. No job. So much for the "Economic Recovery".

[Flugel89]

Send the people who ran up that debt to China, let them work it off...joking.

Why not? I think it's a grand idea. It'll give them a long needed sense of responsibility and work ethic, while they pay off what they spent.

[PaulConventionWV]

I dont even make 1400 a month. No job. So much for the "Economic Recovery".

The point of economic recovery is that, when it happens, you will HAVE a job.

Edit: Oh, I see you're talking about Obama's economic recovery.

[Voluntary Man]

Send the people who ran up that debt to China, let them work it off...joking.

i like this idea. seriously.


there was an episode of 'Outer Limits' (I believe), from the mid 1990s, in which a man finds a box, which he believes to be a wish-box. throughout the episode, the man wishes for bigger and bigger things, all while attempting to evade the apparition of an alien, whom the man believes to be the true owner of the "wish-box" he has found. Eventually, as the man exhausts his imagination, having fulfilled his wishes of Bentleys, yachts with bikini-clad crews, and a mountain-top Taj Mahal-sized mansion, the man is finally informed by the alien, who has worked out whatever technical difficulties were previously allowing the man to evade him, that the "wish-box"he is actually some form of intergalactic credit card, and that he has exceeded the credit limit. unable to repay the accrued balance, the man is instantly transported to a labor colony, where he is expected to spend the balance of his life working off his debt.

i only saw the episode once, probably 16 or 18 years ago, so i may be a little fuzzy on some of the details, and may even have attributed it to the wrong anthology. i have search the Internet, though, and have failed to locate the episode anywhere. i would really like to find it; it needs to be circulated as an educational video.

[Xhin]

If the income tax was ended, our economy would jump through the roof. Productivity would rise and the revenue that was lost from the income tax would quickly be replaced by the rise in the economy.

Uh, I don't think the economy is THAT easy to fix.


Almost half of federal revenue is from individual income taxes. Add in corporate taxes and payroll taxes and it's pretty much all federal revenue that is taken from individual and corporate income.

Where do import taxes fit into that chart of yours?

[NikolayaRadchenkova]

Where do import taxes fit into that chart of yours?

The "Other" section. It says so right on the chart.

[Xhin]

Well, if you replaced income tax with them (and shrunk the spending massively) you could effectively end outsourcing.

[Paul Or Nothing II]

Actually, just defaulting on the debt won't be so easy because much of it is held by nations allover the world & various government funds & local & state governments


Send the people who ran up that debt to China, let them work it off...joking.

I don't think that's a bad option at all :D


The income tax is a small percentage of our annual revenue.


Hardly


http://www.facingup.org/files/images/facingup_revenue_sources.png

Almost half of federal revenue is from individual income taxes. Add in corporate taxes and payroll taxes and it's pretty much all federal revenue that is taken from individual and corporate income.

Hmm, I wonder why he got banned, I hope it wasn't for posting the chart!


Just before Prohibition, 50% of the Federal Govts income came from Taxes on Alcohol alone! My my, how far we've come.


That was when TOTAL government spending (meaning Federal + State + Local) was less than 5% or so of GDP, today, it is about 40% or so of GDP; I don't think you're going to raise 50% of that through alcohol-taxes :D


Uh, I don't think the economy is THAT easy to fix.

Actually, it's not that hard either, all it needs for central-planners to get their hands off the economy & stop meddling so much in it & it will fix itself


Well, if you replaced income tax with them (and shrunk the spending massively) you could effectively end outsourcing.

If prosperity could be gotten by simply putting taxes on cheap imports then whole world would be rich but that's not how it works

Banning imports because they are cheap is like trying to make your own TV, fridge, computer & so on at home because the businesses selling them too cheap, it doesn't make you richer, in fact the opposite; so it's better for you to do what you can do well, earn the money with it & then buy the rest of the stuff from others

[Zippyjuan]

If the income tax was abolished... I still would not owe any .

About half end up not owing any.