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Wouldn't abolishing the federal income tax be the BEST economic stimulus plan?

This would put more money in everyone's pocket and would allow people to spend/invest more of THEIR hard-earned money.

Even if we abolished the federal income tax today, our government would have the same amount of revenue/income that they had in '02. Point being the govt wouldn't suffer near as much as they would claim.

What say you?

Update:

@Lucyinthesky: Excise taxes, estate and gift taxes, customs duties, usage fees, tariffs, corporate income tax, etc...

Update 2:

May I add that to make this plan extremely effective, we would need to cut our govt spending. Get rid of the Dept.'s. We don't need the Dept of Education, the Dept of Homeland Security, we don't even need the IRS. People can't fathom how our country can survive without these things, but I ask, how did we become so great without them?

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  • 1 decade ago
    Favorite Answer

    of course it would be the best economic stimulus plan! if you had control over the $0.62 (or 62%) of each dollar that you spend that represents taxes of one kind or another accumulated every year and growing, rather than only having purchasing (and savings) power of 38% of the money that you spend, for anything, then you sure would be able to stimulate the economy!!!

    here's a link that shows us some 130+ federal government agencies (not departments, like the department of education which has been the major player in forcing schools to dumb down the population so that government may have complete control over them), which part of that 62% of every dollar that you spend funds:

    http://www.whitehouse.gov/our_government/federal_a...

    yes, i said "funds." we fund these agencies, half of which were not in business in the 1950s, when our country was the most profitable and powerful country on the planet, with such low unemployment that it was true that it would not take too many years to save up a 20% (not 10% or zero %) money down to purchase that all american dream: the single family house (not the condo).

    now think about all these agencies and departments of the federal and of the state/county/municipal arenas where we live and work. think of the number of people they employ. do you know that last year, and i think a few years before it, straight in a row, the federal government had by far the highest employment and retention rate of all sectors of our economy?

    who says we need them? we vote representatives into congress to help us run this country efficiently and even defensively, and they in turn create more and more departments and agencies that we pay for in the form of taxes, taxes, and more and more taxes.

    if powers were returned to the states, where many of them belong, then services would be on a state level, where they had been a long time ago at far, far less money in taxes.

    actually, the internal revenue service, is not truly run under the laws of the constitution because the money it rakes in from you and i is not apportioned as it should be, therefore, it is committing what is tantamount to a crime.

    who needs all those accountants, anyway?

    NOW, as to your next point: how did we become so great without these federal departments and agencies?

    we became great because in the past individuals operated more on a cash basis than on a credit basis. we became great because the dollar certainly had more buying power back in the 1950s and before that (not including the depression--an entirely different topic) than it does now, thanks to taxes for federal services that are not being done (never forget! katrina and FEMA). that's because the people that sit in those cushy leather chairs that we buy for them to talk on the phone that we pay for and to write their initials onto interoffice and intraoffice memos (reporting, always reporting, but really, doing nothing), even the paper upon which they are printed out on paid for us, the average joe blow working class citizen get paid a LOT of money, all because of their political connections, their interaction with lobbyists run by big business that does not give a damn for their american workers and will outsource as much as it can to gain a larger and larger bottom line, and because of our allowance of the creation of such federal agencies and departments, employing many, many people that do not really PRODUCE.

    if we overthrow the IRS and other taxing bodies that are overtaxing us and have nothing to give to us for taking too much money from us, that will mean that we will have more money to BUY AMERICAN. yep: that is why we were so powerful in the not too distant past.

    we manufactured the goods that we needed and wanted and the people bought them with CASH, not generally with much credit. but the environmental protection agency, to name one of them, employs many people that do not want us to benefit from what is on our federal land or water or under our land. and it claims that it is necessary because we as a people are too dumbed down to handle industry wisely, but that is not true. it is just easy to believe that it is true. it doesn't take much thought, it does not take much energy. if you allow the government to run your life, you are going to have to PAY for it. it is not free. it costs a LOT OF MONEY. and there is a LOT OF WASTE in how the money that we allow to be stolen from us is allocated for things that we need, for instance, the rebuilding of bridges, here, in our united states. or how about the protection of our border between the united states and mexico? i know many american citizens that are ready, willing and able to stand at all the checkpoints along our border to ensure that illegal aliens do not stand a chance to stay here when the enter illegally. and our money PAYS for their health and welfare! but they don't pay taxes! how can they? they do

    EDIT OF ABOVE (they cut your characters, i guess... this is the paragraph above, continued, as well as the balance of my answer):

    ...

    allow to be stolen from us is allocated for things that we need, for instance, the rebuilding of bridges, here, in our united states. or how about the protection of our border between the united states and mexico? i know many american citizens that are ready, willing and able to stand at all the checkpoints along our border to ensure that illegal aliens do not stand a chance to stay here when the enter illegally. and our money PAYS for their health and welfare! but they don't pay taxes! how can they? they do not have a social security card!

    i am in full agreement with you that the IRS and many of the other taxing bodies need to be abolished, money being returned to the people for the people to spend and to save as they deem fit, since, oh, don't you hate to hear it? do you really think that your lifestyle is going to be maintained by your SS checks when you retire? don't you know that the money you get from SS (if you make over x number of dollars on top of it) is taxed again? so, you got taxed to fund the social security administration (the "system"), and then your money that you get from it gets taxed. and so do (in many states) the items that you leave when you die to your heirs, which you already paid taxes on when you accumulated them.

    it is such a big cheating game. if mr. obama wants to "change," then he should call for congress to disband the IRS, as only one move towards more "change!" and "not the same as before."

    Source(s): grew up in such a wealthy time: gee, my mom actually stayed at home to raise us kids while dad built up his own company and got rich from working it. but today, the american dream is dead. do you want to revitalize it? then think how that can be accomplished!
  • 1 decade ago

    You are correct on all counts, except the Fed wouldn't allow it because it would still have to loan the government the money they needed to operate and then lose the extra money the tax payer pays in.

    Another way is to change the tax code and go to a flat tax across the board. If we had a flat tax rate at of 17 to 22% on all income with no deductions, they would make more money than they do now, with the middle income people carrying the load.

    The state didn't have a state income tax when I lived there in the '80's and through sales and tourist tax only they had some of the best roads and schools, fire and police and reserves than any other state, proving that a state does not need the income tax. Just before I moved to Texas, I lived in Kentucky and they had income tax and the same sales tax as Texas but had some of the lesser kept up roads and nearly no reserves. This proves that an income tax is the lesser part of a revenue base.

  • 1 decade ago

    Exactly! End the Fed, End the income tax. We could pretty much cover the cost of income tax taken, excuse me, STOLEN from citizens each year by ending our foreign empire foreign aid and staying out of everyone elses problems and just spreading a message of peace, friendship and free trade with all nations. The terrorists won't attack us if we stop giving them reasons to. Also you are right about ending those wasteful bureaucracies known as Gov't Depts. People are shocked when someone talks about ending the Dept of Edu but if you look at the numbers how has it helped? Education system in America is getting worse every year. Hopefully people will realize that Gov't does NOT help problems, it makes them worse so they can steal more power and create bigger gov't.

  • Anonymous
    5 years ago

    It had some merit, and there are credible economists who think it would have been a good strategy. But the horse has left the barn. The more traditional stimulus is already underway. The stimulus is a temporary program and there is no do-over when half the money has been spent or promised. The nation can't really afford both.

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  • Trev
    Lv 7
    1 decade ago

    The federal income tax was never ratified in the senate by the correct number of representatives (I'm not sure of the exact wording) so it is actually an illegal form of taxation that no US citizen has to pay. Therefore, if you refuse to pay you'll not actually be breaking any law. Though you may be punished as though you have. Of course when your court case comes up you can always ask to see the actual law, and when it cannot be presented, then the jury should be made aware that they don't have to pay this illegal tax either. Everyone's a winner!!! Screw the government, they spend it all on illegal wars anyway.

  • 1 decade ago

    Repealing the 16th Amendment would go a long way in restoring what the Founders intended. At the same time, the Federal Reserve has got to go, and we need to return to honest money (gold and silver coin). Today, this is a really radical idea - to actually return to Constitutional government!

    This would usher in the greatest economic stimulus imaginable. With honest money, no inflation, no income tax siphoning off capital, our standard of living would increase, rather than continue to decrease.

  • Max50
    Lv 7
    1 decade ago

    I would go with a Bible tithe a flat 10% off the top.

    No deductions no way out.

    IRS would be reduce to one building and one floor.

    The IRS code be one page.

    Look at the churches in America and they ask for a tithe and you know darn well not everyone give a 1/10th.

    Think how much more we be in the nation if we all just give a 1/10th.

  • Anonymous
    1 decade ago

    YES...we should have sales tax hiked to provide income for the state as well as the fed...

    THAT WAY, crack heads, hookers and drug dealers would have to pay the same exact taxes we all have to pay.

    The ones with the most money would contribute the most since likely they are consuming the most because they have more to spend....

    Everyone would be taxed according to their expenditures...fairly straight across the board.

    And it would put an end to hard working Americans footing the bill for illegal aliens, criminals and other tax evaders.

    Hike the Sales Tax ...dump the income tax!!

  • 1 decade ago

    Yes. I agree. Repeal the 16th amendment...

    Remember, the first federal income tax was ruled to be unconstitutional by the U.S. Supreme court... which is why it became a Constitutional amendment in the first place...

    This country did fine for more than 100 years without a federal income tax! I think it would be fine now.

  • 1 decade ago

    I would like to see income tax replaced with a sales tax like Texas and Florida have.

  • 1 decade ago

    That wouldn't help much.

    But, if we outlawed all imported goods for a year or two (including goods made by American companies with cheap foreign labor), we might force a resurrection of American manufacturing.

    Bad news for people who need clothing or shoes, though. I don't think any garments or shoes are made in the USA anymore.

    The only problem is that the labor unions would demand such high wages and benefits that the products would be too expensive for the public to buy.

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