THE TAX GUISE

We keep hearing the Biden administration claim that his massive spending plan is totally paid for and won’t cost a thing, something they plan to achieve with tax increases and an additional 87,000 new IRS agents – you know, to track down the “rich bad guys” who aren’t paying their “fair share.”

To believe such tomfoolery is to be totally ignorant of the facts and economics at play.

THE BIDEN ECONOMY demonstrated the impossibility his fiscal plan would cost nothing on the most basic of premises – that big government and their according spending programs are extremely inflationary, a cost to each and every one of us. So in this blog we’ll forget about inflation and its rising trend and make believe that food and gas prices are where they were before the Wuhan flu blew into town, that all types of goods are easily had and store shelves are fully stocked, and that everything Biden touches turns to gold. So in this blog let’s live in that time called yesteryear – but with the laws of mathematics still in play.

Last year tax receipts for U.S. central government were $3.4 trillion, money that was raised with a highest individual tax rate of 37%, a Social Security and Medicare rate of 7.6%, a highest corporate tax rate of 21% – PLUS a Social Security and Medicare match for every eligible payroll dollar of employees, and every other excise tax and permit fee embedded in the system. Together they accumulated to 3.4 trillion dollars – an amount comparable to the entire GDP of Germany.

So in a theoretical world that only academic elites can believe, a doubling of those taxes and tax rates (to 74%, 15%, and 42%+, respectively) would generate twice the amount of tax revenue, or $6.8 trillion.

Last fiscal year U.S. central government spent $6.6 trillion and Biden’s new “Build, Back, Better” spending plan promises to push the nut to more than $10 trillion per year, an amount that would still produce $4 trillion in annual deficits – even with a doubling of rates. And with a new highest tax rate of 89% (74% plus 15%) for individuals, and a 42% corporate rate PLUS a matching amount of Social Security and Medicare (15%) per eligible payroll dollar, the economy would have no choice but to shrink and get more expensive, causing even greater debt and deficit, and inflationary pressure.

In other words, tax hikes have nothing to do with paying for Biden’s big spending plans because taxes alone are insufficient to finance the load – regardless of how many IRS agents are employed. Not to mention that inflicting such a stiff tax burden on American taxpayers is completely and unequivocally unconstitutional.

For instance, many on the Right thought I was crazy when I opposed the elimination and minimization of the State and Local Tax deductions (commonly referred to as SALTs) at the federal level, arguing that it was unconstitutional and in direct violation of the 10^th Amendment, which it is.

Think about it…should Biden be able to increase tax rates to such a severe extent it leaves the 50 individual states with little room to levy and collect taxes, and no leeway for their local municipalities to do the same – thereby forcing towns to rely on states for funding, and states to be dependent on the federal government for funding, who would then own and control every action in every state, city, and town, because they are the single dominant and central payer to the economy. And then, low and behold, America is a communist dictatorship with no state borders, centrally planned and funded by the Washington DC establishment.

Such a structural framework eliminates states’ rights because they have no ability to raise money and fund their own priorities and objectives. They are beholden to the Fed, who have all the money and the only access to it.

Tax hikes and increasing the IRS army are only a ruse, under the guise to pay for Biden’s social spending plans, but truly intended to fulfill the communist dream of taking over the American free-market by diminishing the independence of the individual states and eroding the liberties for all who reside in them, little-by-little, right-by-right.

The reason taxes and tax rates no longer figure into Washington’s fiscal calculus is because they no longer matter at these spending levels – especially with a Federal Reserve willing to print whatever amount of new money is required to finance the big government ambition – even if it comes at great inflationary expense to the American people, and diminishes the rights guaranteed by our constitutional Founding, which of course includes a right to privacy.

So, if taxes and tax rates don’t matter then why would Biden raise them?

For greater control.

Central planners want central control over the economy and to do it they must direct the majority of dollars circulating through it. They want to spend more, and they want you to spend less. To minimize your impact on the economy, governments limit the amount of money you have to spend freely in the market system. They do so by raising taxes, of which inflation is a part, and by employing stronger enforcement tactics.

So in yet another breach of individual privacy rights the Biden administration plans to use the additional 87,000 IRS agents to audit nearly every monetary transaction individuals make by illegally accessing private information from banks and payment processors like PayPal and Venmo – information they will use to impute taxes on transactions that may or may not be taxable, forcing individuals to constantly be on the defensive against a revenue agency known to be corrupt and politically charged.

First, what gives government the right to investigate our financial privacy and personal data in this way, without any reasonable cause of criminal activity or authorized search warrants?

And second…

How ‘bout we demand the same level of detail for all of our elected representatives before we get investigated – after all, they do work for us?  And let’s take it a step further, the public must see the detailed results for public officials before one innocent American is investigated.

Needless to say, there is much more corruption on their end while spending between $7 and $10 trillion per year than there is on our side of the economy. After all, $10 trillion of government spending represents 50% of total U.S. economic activity, a sum appropriated by only 535 individual Congress-people, representing an amount near the entire GDP output of China (approximately 1.5 billion people).

If the American people shall lose any individual rights, then all of their political representatives ought to lose them first.

The problem in America today is that her people have been conditioned to constantly cede rights without any fight or debate. Stay home, don’t celebrate holidays, can’t worship, wear a mask or get denied access to healthcare services – even though their efficacy is suspect at best – get vaccine after vaccine even though you can still get the virus, transmit it, and die from it, show papers to travel and enjoy dinner out, don’t say this or that, don’t defend yourself or your property, conform or be cancelled – and now, cede your right to the privacy of your bank statements.

Again, the reason banks will comply is because the Fed mandates them to, and then pays them to carry out their orders (with QE money). The reason doctors won’t see you without a mask is because government ordered them not to do so, and then paid them to enforce it (with money printed via QE). None of this was legislated by Congress. Just dictatorial edict.

Over the last twenty years big government has taken control over almost every major sector of the economy by paying them off – labor (via legislation extremely favorable to trade and service unions), education (via No Child Left Behind), banks and banking (via TARP, HARP, Dodd-Frank), healthcare (via the Affordable Care Act), and now energy (via Biden’s Build Back Better) and your rights to privacy (via the Patriot Act) – all financed with a crisis measure called quantitative easing (QE), a monetary Ponzi scheme concocted during the financial crisis in 2008 and abused ever since.

The question now is when will the American people follow the citizens of so many other countries and protest tyrannical government by forcefully restoring their free rights through mass non-compliance of nonsensical mandates and demanding accountability for government officials who have clearly lied, deceived, and fraudulently rescinded individual God-given rights for no good reason, and for way too long.

Raising taxes would cause a recession in individual net worth and free-market spending, and that’s not what America needs right now.

Instead, what We really need is a recession in government and its according spending budgets.

So when will America stand up and demand ending the madness of trillion-dollar deficits and the limitless printing of new money via QE?

Only then can America begin arresting inflation, tyrannical government control and corruption, and the erosion of individual and economic liberties.

Stay tuned…