I am going to give you a quick history lesson on taxes: Source (Income tax fundamentals- 1998 edition, Gerald E Whittenburg, and Martha Altus-Buller
The U.S. income tax was authorized by the 16th amendment to the constitution on March 1, 1913. Prior to this the U.S. had levied various income taxes for limited periods of time. Ex. income tax was used to help finance the civil war. The findings by the courts that the income tax law enacted in 1894 was unconstitutional eventually led to the adoption of the 16th amendment. Since this amendment, the constitutionality of the income tax has not been questioned by the fed courts.
Many people believe the sole purpose of the income tax is to raise revenue to operate the gov't. This belief is not accurate. The income tax is used also as a tool of economic and social policy. The tax law has many goals other than raising revenue. These goals fall into 2 categories-economic and social goals.
Ex of economic goals - limited allowance for expensing of capital expenditures and the ACRS or MACRS of depreciation.
Social goals- resulted in teh adoption of the child tax credit, dependant care credit, EIC and charitable contribution deductions etc.
Other than to simply spread conspiracy theories based on the sheer opinion that tax somehow has "goals other than raising revenue", what exactly was the point of that?
I'm being serious. I know you copied and pasted it, but exactly what was the point the author was trying to convey? It simply ended abruptly with a blind assumption of conspiracy, with zero explanation as to why.
Lets just a make a hypothetical example: lets say the so called rich $500,000 / yr. and lets say they pay a total of 15% of their income to taxes. That is $75,000/yr. Now lets say a family of $40,000 pays that 15%, that equals to $6,000/yr. Now that person making $500K is covering 12.5 times more than those who make $40K. All in all the, the wealthy are contributing.
Problem is, what if you make $100K a year, and fall into the 28% tax bracket.... then you don't qualify for deductions, and pay the full 28%. All the while someone who makes $500K, who would be in the 35% bracket, only pays 15% because their income qualifies for "capital gains".
Meaning someone who earns less can pay almost twice the percentage of their income simply because they get a paycheck in a slightly different way. That's just one very simplified example. There's tons others.
Hence why I prefer the national sales tax in leu of the income tax.