
Originally Posted by
bdmarti
I don't care for Paul's answer as listed above, and perhaps it was heavily paraphrased.
I agree that Russo's movie misrepresented or misinterpreted some things, but I disagree with you that all the laws are in order to make us pay a personal income tax on labor and wages.
I think this for 2 reasons: a tax on labor is akin to involuntary servitude and second, and more importantly a tax on labor is a direct tax and is subject to apportionment.
Examine, in principle, what it means if the legislature can at a whim take 100% of your income on labor. What if they only take 99%? Or if they leave you with just enough to eat and have shelter, are you free yet? What if you can even have some comforts like cable and a car, then are you freely working for the first 3 months of the year?
Second, all things are taxable with a few listed exceptions, including a tax on labor and wages like our existing income tax. The problem is that a tax on labor and wages must be apportioned as it is a direct tax. The issue is the defintion of "income" as applied to labor and wages.
Income, in a corporate sense, is equated to profit, but for an individual every single cent (with some arbitrary exemptions) is counted as "income" prior to the individual paying any expenses. The government can not possibly know what it costs you as an individual to function properly in order to go work and earn your wages. Not that it matters because the government doesn't give individuals the same courtesy of paying their expenses prior to announcing their profits.
Income, in a sales sense, is equated to profit. Buy a widget for $1 and sell it for $2 and you pay tax on only the $1 of profit. In contrast, the government delcares that your labor has a starting value of ZERO dollars and that all money or items recieved in exchanged for said labor are income and are taxable. This is absurd.
Why is it that income, when applied to labor and wages, means "gross income" instead of profits as it does in all other situations?
The income tax when conceived was to be applied to "unearned" income, such as from interest or dividends that the very rich made. It wasn't supposed to apply to wages and labor. There is a huge difference.
If I dig a ditch for $100 I spend many calories, risk my health, and spend unrecoverable time on the project all in exchange for some money.
Why are my time, health, and energy worth nothing? The answer is they aren't worth nothing. They have a market value, and that market value is reflected in my wages. The excehnge of labor for wages is an EQUAL exchange as far as the market is concerned, and no "profit" is made by the laborer. Instead, the laborer generally get's currency which allows him to turn his labor into other things he.she might not otherwise be able to do. For instance, not everyone can build a house, but if I work and earn some money, I can pay someone else to build my house. Not everyone can farm, but if I earn some money, I can pay someone else to grow my food. Specilization in a job should allow the market to produce goods better and cheaper than if everyone tried to do everything for themselves. At the end of the day though, I've exchanged what are percieved to be equivalent goods in the market....it's as if I've traded 1 widget for another identical widget. The idea that every time you trade widgets the government should get some portion of the widgets involved is crazy talk, and it becomes even worse when you try to single out wages and labor as being subject to such a tax.
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