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Why Do You Pay Taxes?

As various tax-related mail begins to appear in the mailboxes of hardworking Americans across the country, it’s instructive for all of us to reflect on why we carry the burden of our government every April.

Take this morning, for instance. We can credit the “ingenuity of the markets”, and specifically the ingenuity of John Thain, for moving annual executive bonus payments by Merrill Lynch up by a month last November, thus disbursing $15 billion in executive bonuses just before closing Merrill’s acquisition by Bank of America. Fast forward a few months, and the United States taxpayer just gave Bank of America another $20 billion in newly-borrowed funds to put a band-aid on mortar wounds in Merrill Lynch’s balance sheet.

Doesn’t that make you relish the withholding from your paycheck? Seventy-five percent of the cash payment from our latest Bank of America bailout went directly to Merrill Lynch executives.

But wait, there’s more. Large companies predictably demonstrate that the best ways to embrace economic challenges are cost cutting, layoffs, and vaguely-defined attempts at increasing operational efficiency. One underappreciated source of operational efficiency is office redecorating — and in early 2008, John Thain spent $1.2 million renovating his office in Merrill Lynch’s midtown Manhattan office.

Please don’t misunderstand — I have nothing against a $1.2 million office overhaul paid for by Merrill Lynch. I simply object to an office overhaul followed by a massive transfusion from American taxpayers. Where’s my feng shui?

If you’re concerned about where your money is going as you pay taxes this April, I can think of several ways to respond. On one hand, I’d encourage you to consider the American banking system as a new national park. You’ve paid over $350 billion already, with trillions in future guarantees. In the case of Bank of America, the most recent $138 billion bailout dwarfs its market capitalization, so you own it just as certainly as you own Yosemite.

Visit the offices of local TARP-receiving banks. Enjoy a cup of coffee, admire the decorations on the walls. If you’ve been laid off, evicted, or otherwise having trouble making ends meet, you might try camping in the parking lot or on the leather couches inside.

If, however, you’ve had enough of the squandering of our nation’s wealth propping up a pyramid scheme that dwarfs Bernie Madoff’s wildest dreams, you might consider sending your Representative a message on February first. Or perhaps you can convince your Senator that it’s a bad idea to confirm a Treasury secretary who can’t even use TurboTax.

In the cold, hard light of current events, and considering that the vast majority of income tax collected goes simply to cover interest payments on a national debt created by the same banking system we are bailing out, I ask again:

Why do you pay taxes?

Fear and habit.

Anonymous's picture

I pay income taxes so that the government doesn’t put me in jail. That’s it. It’s not moral to charge income taxes, and it’s not moral to support a corrupt organization that imposes them.

Anonymous's picture

I pay taxes out of prudence, out of fear of what the government will do to me if I don’t. I have no moral obligation to pay taxes, because I never gave my consent, I never agreed to it voluntarily. It is that simple.

Larry Ruane's picture

BJ,

It is amazing how those in government point to companies passing out billions in executive pay and say it must stop. Instead of trying to tell companies what to do, how about we don’t hand out that $20 billion after $15 billion was given out in bonuses? Wouldn’t that just make sense? If the bonuses are going to make them fail, then they need to fail. “Rescuing companies” simply creates bad incentives.

-DC
http://www.davidcarlsonpolitics.com

David Carlson's picture

i pay taxes because i can not figure out anyway to not pay
them and be able to afford the legal help i could need if i
did not pay

G BAILEY's picture

I pay taxes for the same reason I would hand over my wallet to any mugger; Do it, or else. Hiding behind a flag and patriotism does not legitimize a criminal, rogue government. It is simply an historically effective livestock management technique. Say moo and pay up tax cows or be culled from the herd.

DPH's picture

That explains it perfectly DPH.

SJE's picture

You give your consent and voluntarily agree every time you sign those government forms. The current administration in Washington refuses to follow the law. Acting outside the law makes them criminals. Every dime of your resources you sign over to this illegitimate cabal does nothing but promote their criminal activity.

Have some courage America!! Stop supporting your oppressors!!

If you own you, and you own your time, then you must own the products of your time and talent, some call property. If you allow someone else to lay claim to the product of your time and talent, you are a slave.

Dr Drumright's picture

You need to pay protection money to the man. Otherwise he throws you in jail and steals your property.

Anonymous's picture

I pay because to not do so involves consequences I am not prepared to bear, at least right now. I do however, use every trick in the book (don’t ask) to minimize the
taking of my productive output.

Maltese Falcon's picture

I pay them because I cannot afford penalties or eventual arrest. I am the main wage earner in my family and they depend on me. If they did not I might be willing to fight against it by refusing but at the moment I simply cannot.

Vincent's picture

I pay out of fear of men with guns coming to my house, shooting my dogs and dragging me off to jail. It’s protection money.

Jay4liberty's picture

I pay taxes because I have so much money laying around that I simply don’t know what to do with it. I could go out and spend it at all the small shops in my neighborhood, but that would mean that they are making money and would have to pay more taxes too. What’s the sense in that?!

No, it’s far better that I give up the compensation I receive for my time and talents so the government can wisely disburse the money to those that don’t have my skills, determination, or good fortune. I look forward to 4/15 every year because I know in my heart that I am giving some poor government worker a job.

Rob Schwenck's picture

I pay taxes so an inefficient, corrupt, and corrupted government can thoroughly and inefficiently mismanage [OK, steal] my hard-earned money. It makes me crazy.

I’m willing to pay some taxes for what I consider the common good. However, I’d prefer to support the common good by my voluntary contributions of time and money. I can then support those things that are consonant with my value system.

mara evans's picture

I happily, willingly, openly — even enthusiastically — pay taxes so that the government can protect me from enemies domestic and foreign as our Constitution directs. But any penny (and now, sadly, that’s the bulk of it) that is forcibly taken from me to do something else, something NOT specifically assigned in our federal or state constitutions, is nothing more than a bribe offered by public officials to voters by way of this or that public expenditure. We pay taxes to support the government’s mandates enshrined in the Constitution. If politicians don’t like the narrow purview spelled out for them in the Constitution, they have an option: amend it. For them to read into the Constitution an opportunity to fund recreation centers, gussied up former railroad stations, hiking trails, and bailouts flauts the assignment given to them by the framers of our Constitution. Our Constitution — any constitution, statute, or law — means what it says or it means nothing at all. If one public official can find a reason to ignore the 10th Amendment, then the next may find a reason to ignore the 13th Amendment. If the provisions of the Constitution mean whatever one wants to interpret them to mean, then so can the wide array of statutes and regulatory law be re-interpreted to mean whatever the next demogogue may wish them to mean. The rule of law is on the chopping block, and it is our elected officials, those sworn to uphold our federal and state constitutions, who have brought it there. The fact that few Republicans can defend the Constitution any better than they can defend the free market system is a symptom of how sick things have gotten.

Jeffersonial Conservative's picture

I didn’t sign the “Constitution”. I am not legally bound to it, nor are you. The only reason I ‘pay’ taxes (they are involuntarily extracted) is to prevent my life, or those of my loved ones, from being harmed. I don’t support what our “Government” does with the money it steals, and if it was up to me, the “Government” would be dissolved. (No offense to you, BJ - I voluntarily sent you money for your campaign)

Todd's picture

I pay what I am liable and not a dime more. I work in the private sector, so I don’t have much in the way of “income tax” liabilities.

Confused? Read this book:

http://www.losthorizons.com/Cracking_the_Code.htm

MNviking's picture

Careful of “Cracking the Code.” It contains a lot of frivolous arguments and “patriot nonsense.” All you need know is the IRS needs to follow the law and their regulations. Don’t look for a smoking gun. Learn the law and hold them to it; you will see the truth.

Marcus's picture

Not true at all. You have no idea what you are talking about.

MNviking's picture

Something you would do well to keep in mind is that our government routinely breaks the law, and they’re not going to stop just because you present a legal argument that proves they are doing so.

Irwin Schiff’s legal arguments are entirely correct, but he still went to jail. The way to keep your money is not to get in the IRS’s face and fight them, but to hide your money. Take it offshore, deal in cash (or better yet, in gold), and avoid all contact with government to the greatest extent that you can.

Anonymous's picture

All the comments sum it up. We pay taxes because we’re afraid of the consequences of not paying. Suddenly it feels as if our freedom has been removed, not by terrorists but by a corrupt government system who handed our financial well being to the Federal Reserve in 1913.

The federal reserve is composed of foreign interest and is is a private organization (not government owned). The same people that own the fed also own major interest in major media here in the USA.

Major media propagated the lie that there was a financial crisis. Visit any bank, visit the loan officer and ask them if they EVER stopped lending money. So far not a single one I have asked ever stopped.

There was no crisis until the media announced one. Now suddenly everyone is holding their money close, bad for the economy… Now there is a real crisis that stems from the announcement of one. There was no thief in the night that stole our nations wealth… The money is still here, tied up in real estate and sitting in bank accounts and under mattresses. The only thing that has changed is the fact that people aren’t spending … why? … They’re afraid of the “financial crisis” which never existed… As a result, there IS a financial crisis now.

Recession / Depression is the biggest scam ever perpetuated by rulers and governments. The goal of recession is to lower the price of goods/services and real estate so the wealthy can own more for less and then bank on the rise in prices once the media decides to let everyone know that… We’re no longer in a recession … Woo Hoo … Go spend money now.

The Fed (who controls our government) wanted to own private interest in the banking and auto industry here in the USA … OK … Let’s cause a financial crisis so we can print FIAT (fake) currency and give this valueless paper to banks and the auto industry in exchange for ownership.

They pulled it off, we are pawns, the fed must be dealt with, not the US government.

The only way to tax the fed is to collectively stop paying taxes and use our elected officials to collectively demand reform. The American citizen is the true patriot but we are being abused and tortured by a private party that owns our government (because we rely on THEIR money) and now our government owns private interest in corporate America.

Does anyone else see what’s really going on here or will I be labeled a conspiracy theorist. There is too much evidence to lie down and roll over. Do your homework and you’ll reach the same conclusions I have… We are prisoners… they say “keep them entertained” while we slowly own more and more of their interests.

I say … Stop paying taxes… I stopped (who’s the real patriot). Our tax money goes to nothing but interest that the fed charges our government to print fiat currency.

If we stop paying taxes “as Americans” then the IRS (the collection agency for the FED) … They will not have enough resources to take effective action… They will comply or we will overrun them.

It’s time for everyone to stand up and fight for our country… The war in Iraq is a distraction… The real war is right here at home. The real terrorists call themselves The Federal Reserve.

Charles A's picture

How did you stop paying taxes legally? If there were a way for the “Average Joe” to do it, more people would be following suit, standing up. Right now though, fear rules Americans. If there were a way for Americans to stop paying their taxes— or as I’d prefer, to direct my tax money to the efforts I support— they would. Many, like myself, simply don’t have the knowledge or financial, legal saavy to do it.

Anonymous's picture

Most citizens pay income taxes - even though the are not Constitutional. They have agree to become a corporation when they signed up for a SS#. Google ‘capital citizen name’. Corporations can be taxed, income from individuals can’t. -
Anyway, citizens on W-2s need to start a small business. Expense assets to mitigate their tax liability. Learn to play the game.

John Q. Publix's picture

16th amendment to the constitution - “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”

Don’t see jack about corporations in there. Are you from the U.S.?

Griefer667's picture

They’ve got more guns than I’ve got - that’s the only reason I pay (and that’s the reason they want to ban guns)

taxd2deth's picture

I pay taxes to avoid the negative consequences of not paying them.

Any possible justification for paying taxes to fund something can be handled privately — I could still fund that ‘something’ without going through government.

Eric H's picture

Not much to add except my long-held belief that taxation beyond the absolute minimum necessary for the survival of the country is simply theft.

Chris Moller's picture

Like many, many U.S. citizens, I allow my natural right to the fruits of my own labors to be infringed in order not to go to jail.

Sales taxes for funding the legitimate functions of government are always necessary, it’s part of the mechanism of civilization. But being leached by bankers is not a legitimate function of government, and especially not through theft of my personal resources before I have a chance to spend a penny.

Anonymous's picture

I pay taxes simply because I do not want to be put in jail.

The solution is this: Get more active people. There’s a GOP convention in North Carolina in the middle of next month. Why don’t you take some time out of your busy lives in order to attend? You’ll find out what’s really going on in your government.

Take it from me. It isn’t a pretty sight. You’ll want to get active.

Revshawn (Shawn for short)'s picture

I pay taxes because my 8 year and 4 month old little girls needs a daddy that can support them and supporting children from jail is something I imagine to be difficult.

Timothy Gandee's picture

I pay taxes because I don’t have the money to flee the country if I get caught for having a tax-haven account off-shores. :-D

But seriously, I don’t mind taxes so much, as long as they go to maintaining my local community. I have a slight problem with state taxes, but I think they are probably necessary. National taxes, however? Well, “smash the State” is all I’ve got to say about that.

Ron Paul / B.J. Lawson, 2012. Maybe the Mayans were wrong!

Anonymous's picture

Ditto what the second responder said. The consequences of not paying them are brutal. Paying taxes neither makes me proud nor feel patriotic. I am just one of Uncle Sam’s slaves.

The Remannt's picture

There are two reasons I pay taxes:

1. I love having to struggle to support a household while having between fifteen and twenty-five percent of my income taken from my (barely above minimum) wages to foot the bill for the refundable credits of people who work hard at sucking on the government teat. I feel it’s my patriotic duty and the least that I can do. (I also enjoy being robbed to help millionaires get corrective dental work.)

2. A long time ago, I made the mistake of borrowing federal and state money for one year of college. Combine my lack of a college degree with my high tax rate, and I’m left with barely enough for the essentials, let alone money to repay debt. So, when I occasionally get a refund (as opposed to owing more taxes), it goes right to the Department of Education to get that monkey off of my back.

Now, as for the true reason I pay taxes: to avoid the threats and penalties associated with being “delinquent” on my societal obligation.

Anonymous's picture

Nations are enslaved by the taxes forced upon them. Through ignorrance and
by design… If You want to stop this… STUDY this site www.losthorizons.com
and don’t be fooled by someone saying it’s frivolus… personally know 5 people
who have gotten every dime back from IRS… Including immediate family… Non confrontational… Just write letters and be patient and learn/study… It’s awesome
Check out the site… Nothing to loose and so very much to gain… Be sure to look at victories page on site to see hundreds of folks getting hard earned $$$ back…
EVERY DIME!!!!

leon's picture

I think the title of this post should have been:

Why Do We Allow The Government To Steal Money From Us?

I have given this some great thought, We are all FOOLS!
Why you ask?

The government steals our money to pay themselves, company bailouts and schemes. They then make stupid laws and they don’t even read the Bills that they pass. ONLY TO CONTROL US!

YES! WE PAY THE GOVERNMENT THROUGH THEFT TO CONTROL US!
www.peacefreedomprosperity.com

James Cox's picture

I like to remind people that complain about income taxes to just take a look at what they get for their tax money.You know they get……..No, Iguess that’s extra. I know, they get………….no I guess that is extra too. Well, maybe later I’ll be able to think of something and will add it later. God bless.

AnonymousBrent's picture

The teabag idea is good, but it could be much better. It is time for a tax holiday for all Americans, and it can be done. Look here to see how:

http://americantaxrevolt.blogspot.com/

Rufus's picture

it’s a shame BJ lost his bid for congress. he needs to run again!!!!

Steve's picture

The number of people discovering the truth and acting on that knowledge is what is going to bring this fraud against Americans down. When a million of us are doing it, what will they do? They will define a new way of taking our money - hopefully something that is much more equal and less controlling over the behavior of the individual. Why are we in such debt? One reason could be that the current tax system punishes those that save (taxable interest) and encourages us to be in debt (until recently all interest paid was deductible - today it’s only home mortgages which is why the housing crisis is there - too many people owe more than their homes are worth - first, second, and even third mortgages to buy cars and “stuff”)

Anonymous's picture

I pay taxes to stay out of jail. That’s the only reason.

Anonymous's picture

I pay federal taxes to keep from going to prison. I probably wouldn’t pay them if I didn’t have a family to support. We are no longer fairly represented in Congress, only special interest groups are- just look at how the bailout was handled. Sending the feds money to do all the immoral and corrupt stuff that they do makes us complicit and immoral too. Someday soon people of concious will stop paying.

Anonymous's picture

I agree with MNVIKING & Leon. Read the book Cracking the Code. Go to the losthorizons.com. The collection agency (IRS) has not put anyone that I know of, in jail for following the law to retain their money. I personally know people that has followed the law, once they read the book & forum and got back every penny. Also I would suggest get a copy of the documentary film, America: Freedom to Facism by Aaron Russo. Ron Paul is on the film.

La. Patriot's picture

You get more of what you subsidize and less of what you tax. simple

US Constitution:
Article 1
Section 2: Representative and direct taxes shall be apportioned among the several

Sect. 10. …make any thing but gold and silver coin a tender in payment of debts;

16th Amendment
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States and without regard to any census or enumeration.

Please note: the tax is on income. Black’s Second Edition defines “income” as profit or gain. The exchange of money for labor cannot be defined as profit therefore is not income. For it to be income, the labor would have to be worthless.

Federal Reserve Notes are not money. They are “circulating evidence of debt”

Please note also: the Constitution cannot contradict itself. Article 1 Section 2 prohibits direct taxes on citizens. Therefore Amendment 16 cannot apply to citizens.

The list goes on. The U.S. Government is out of control.
Ben Franklin cautioned “bind them down with chains so they can do no mischief” Well, they have become the US Royalty and are unfettered in their exercise mischief.

And this is just the tip of the iceberg.

God help us all…..

satch's picture

um… errr… you appear to be crazy. For some reason I just can’t let this slide though.

1. There’s no rule that says the constitution can’t contradict itself. It’s the constitution, not the Bible. That’s just stupid, but I’ll assume you didn’t think that through.

2. An amendment to the constitution is a change. What was written before is negated and the new amendment supersedes it.

3. How is the exchange of labor for money different than the exchange of bread for money? Oh, wait, it’s NOT. Taxing wages is actually more constitutional than taxing, say… interest income because a tax on wages is an excise tax, or tax on the trade of my labor for cash. It’s not limited by the same apportionment rules as a tax on my investments which are property.

Griefer667's picture

sophistry Noun
1. the practice of using arguments which seem clever but are actually false and misleading.

The common practice by our members of our government who seek to make themselves rich and take our freedom in the name of altruism.

Simply listen to what they say and examine the basis for it. George Orwell called it “double speak” does that make you think of Harry Reid and Nancy Pelosi?

Anonymous's picture

John Thain, for all his cleverness, got fired for being so clever. He is being sent home in disgrace, but, still, he gets to keep the money (maybe). The government is going after those who paid themselves unjustified bonuses with government bailout money. Ultimately, the courts will determine whether or not the government can snatch their money back in this way.

New York City has mixed emotions about the whole deal. That town gets somewhere between a quarter and a half of their entire budget from taxes on the bonuses paid to the Wall Street swells.

Bernie Madoff will almost certainly go to jail. Only a crooked judge and a corrupt prosecutor could keep him out. Fortunately, New York is clean in this regard. Aren’t they?

And, like most of you, I pay my taxes because I must. Those Treasury boys carry guns and they only say “please” because, in the timeless words of Al Capone, “You can get so much more done with a kind word and a gun than you can with a kind word alone.”

Tiger Bill's picture

if all the people who pay income tax all banned together and decided to file, but not pay, it would bring the country to its knees. the government would have to listen to us. as it says in the Constitution, “it is the right of the people to alter or to abolish it” and yes, it has become destructive to “these ends.”

Anonymous's picture

I pay taxes out of fear.

Jon Hege's picture

Don’t pay your tax, go to prison. We pay taxes to subsidise their games with the foreign community. The cost of war is colossal, but that will not include standard budget expenditure for the military either. Take into account military progression accelerates during times of war and there’s the increase of national security since 9/11. The resources required to increase security nationwide on a permanent basis will echo through the finances for years to come. Shall we mention the far-eastern threat? If they think China want to play games, you can bet they are preparing for that too.

All those things I’ve mentioned are present day or recent past and taxes have been around for a lot of years, but war is hardly new and government did originally start as groups of men gathered for conference on battle. Even the English version formed from noblemen who gathered during the threat of invasion. They simply wanted to take power away from royalty and at the time, it was the right thing to do, but in the long run it was just another voice of opposition closed shut (I’m quoting history because if you read it you will see that the wealth of a country could drain heavily from war right through the ages and is a huge factor in taxes).

Now obviously our taxes differ; I don’t believe you have value added tax (I love the name!), but of course we all have the wonderful income tax. What is it meant to do? What is it meant to pay for? It certainly can’t go back into the system to encourage enterprise and increase trade, national or international, because the people do that just fine, thank you very much. If you take $4.00 from each of the 250 million+ American adults, you already have a billion dollars and that’s a tiny fraction of what is paid out of people’s hard earned salaries.

We have road tax on our vehicles and car related fines are supposed to go back into highway and transport maintenance, but having seen the movie Black Rain, although obviously exaggerated, America and Britain both have road maintenance divisions that do absolutely Jack and no one can tell me the fines dished out for car related offences doesn’t end up a gigantic figure! One thing on that, by the way; do not let them bring in the vehicle mileage tax (or fight it as best you can); If they bring it in over here it will send the system into meltdown (if it isn’t already) and it’s already being experimented with on some roads so watch this space!

That’s my opinion; war drains huge quantities out of the economy because even though the stock market is currently under scrutiny, it still produced profit. If there is profit to be gained from war it is a long way in coming, but perhaps another way of discovering a connection between the two top parties. It is possible to create profit from war; towns and cities are demolished and the victor milks the generally newly founded government of the defeated. There was plenty of construction work after the first Iraq war and all alliance governments would do their best to put their fingers in the pie.

Then there’s the oil; negotiation would see a percentage of the profit or goods heading across the Atlantic or towards Britain for their ‘assistance’ in clearing Iraq of an evil tyrant (although, to be fair, Saddam and his tin pot army had to go. Oh no! that’s right, we let him carry on didn’t we. I guess even governments save things for a rainy day). But the time scale before seeing the cash (or computer digits) would surely run through and beyond national elections and into the opposition’s reign. They also sell outdated weapons to the new government’s armed forces, as they are now political talking, political thinking people placed carefully (hold up; don’t I remember this story from an up and coming lad named Saddam Hussain in his early days. Wait a minute, Osama Bin Laden had a few outside connections with some countries whilst fighting the Afghan war against, guess who?

And that’s where our taxes go; in their insistent sinister meddling with another country’s affairs. Israel died as a nation then we decided to recreate it, sold arms to both sides then cashed in on every dispute thereafter (I do include Russia with that; they were originally allied to Europe and America), but then I believe military strategic positioning started playing a big part meaning soldiers are left and that is non-profitable. There’s another chunk taken out of the short-term funds to subsidise a possibly profitable fund, but with a long, long haul before it shows and the people wouldn’t see it. They don’t fight these wars then not try to claim their money back (sorry about the length, but taxes are an obsessive hatred in this country).

Elysiumboy's picture

I pay taxes (federal state and local) because I am a citizen of this country. As a citizen I receive benefits (police, fire, education, roads, patent protection, stable currency, and defense from marauding Vikings) and it is my duty to pay for those benefits. Freedom isn’t free after all.

In return I expect to get good value from my tax money. That means not having it dumped into a Caiman Islands bank account owned by KBR, or to give bonuses to executives who should be fired.

There are examples of countries where people have stopped paying their taxes. Those countries are known as failed states. Somalia, Afghanistan, the Roman empire around AD 410.

So before y’all get fired up and decide to pay your taxes in Pesos this year, take a nice hard look at the freedom and liberty enjoyed in these places and make sure that’s what you really really REALLY want.

Griefer667's picture

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