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What If There Was NO Income Tax

Ben Sklar/Getty Images

You knew income tax was prohibited by the U.S Constitution right?  The forefathers of our country specifically banned income tax as a way to raise money to fund the government.  It took a war and a hastily passed and somewhat controversial constitutional amendment to get an income tax passed.  And it was to be a TEMPORARY tax.  No wonder Montanans have steadfastly rejected any attempt by the legislature to pass a sales tax of any kind.  Politicians and taxes seem to be never temporary.

Today, if you’re anything like me, you are struggling with the mountain of paper work needed to get your taxes filed.  Then again, 45% of Americans will pay NO INCOME TAX at all this year.  Let that sink in for a second.  NO tax at all.

Here’s an idea.  How about we scrap the whole thing and start over?  Income tax only accounts for about 42% of the revenue the government spends.  So lets get rid of all the income taxes.  No Social Security, no Medicare or Medicaid tax, no tax on your income at all the way the forefathers intended in the Constitution.

Treasury Department/Newsmakers

Instead, put it ALL as a sales tax.  No one could avoid it.  I guess you could barter, but imagine getting your ENTIRE paycheck.  Accountants would be out of jobs.  So would tax attorneys and IRS agents for the most part.  We get rid of all the payroll deductions and settle on a Flat Tax rate. Go to the grocery, buy $100 worth of stuff.  Pay an additional $27 in taxes.  That’s about how much tax it would take to make the change “revenue neutral.”

What do you think?  Are you for scrapping all the payroll taxes, all the inheritance taxes, all the tax taxes and go to a simple plan?

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