Is it time to return to ancient taxation methods to restore fairness in Federal Tax Laws and still have tax incentives for everyone, rich and poor?
The Chicago Tribune article titled, Amazon’s $0 tax bill? It’s all legal, reports “Amazon.com does not plan to pay the IRS anything this tax season.”
The Purpose of This Post
Annual Federal Tax Time is here. This Post may upset you when you discern our present taxation is not a fair or just system. If so, perhaps you should not read any further.
In ancient times, much simpler taxation methods were in employed in ancient Israel and still allowed incentives to prosper and provide employment opportunities for people to work to provide for themselves and their families.
Perhaps, we need to emulate ancient practices to avoid legal and illegal tax schemes to develop by businesses from incentives to hire entire tax avoidance departments to focus on how to avoid paying taxes.
And, a government that schemes continually to obtain more nickel dime methods to tax because they mismanage our Nations finances to result in the present 22 Trillion Dollar National Deficit.
King Solomon
A ruler with no understanding will oppress his people, but one who hates corruption will have a long life. (Proverbs 28:16 NIV)
This only have I found: God created mankind upright, but they have gone in search of many schemes.” (Ecclesiastes 7:29 NIV)
What’s My Point?
King Solomon’s kingdom broke up after his death because of oppressive taxation, we have term limits on our Federal President to prevent his “reign” of a long life in office. But somehow our Nation has managed to still allow perfectly legal “schemes” to allow a large Corporation like Amazon to pay $0 taxes.
In two previous posts, one about a proposal for a 70 percent tax bracket, the other about inheritance taxes, I believe we need to examine ancient taxation to avoid our Nation from the same fate that occurred after King Solomon’s death, which was to divide our Nation. There is unquestionable a wealth divide in our Nation.
We know Socialism fails to provide incentives for people to scheme to either take advantage of others working hard or becoming discouraged because no matter how hard the work, there are no personal incentives to motivate them to work harder to benefit with more wealth.
For example, in the USA there is statistical evidence of an increase in Social Security Disability applications. And plenty of incentives to remain in poverty, with food stamps, rent subsidies, health care, etc. These well-intentioned programs to help people for a short time have managed to provide incentives to scheme to either remain on benefits and work in jobs paid under the table to avoid Federal Taxation.
In My Opinion
In ancient times everyone paid 1/10th in taxes or labor to pay a fair share. In my opinion, a ten percent minimum and in life and maximum in death should be the guidelines to both limit oppressive taxation.
I also believe tax incentives do provide businesses to expand and create employment. However, when the incentives exceed a minimum, it becomes unfair and unjust in our society.
While President Trump reduced the 35 percent Corporation tax to 21 percent, in my opinion, we should continue to allow Corporations incentives to reduce the 21 percent to a minimum of 10 percent.
Same with individual tax exemptions such as home payment interests, 401k, medical, etc. to prevent people from not paying any taxes because it is perfectly legal to avoid paying taxes, if you either can afford and personal tax accountant or scheme to work for employers who pay you under the table to avoid paying taxes. Or run a cash-only business and hoard cash in safety deposit boxes to avoid paying taxes. Or invest in offshore schemes
As for government to continue to borrow to pay for more and more social benefits, it is time for government to think about balancing the budget and paying down the National Dept which currently requires interest payments to bondholders of over a half trillion dollars a year and an ever-higher percentage of payments vs. Gros National Product to expand.
Think of all the social programs and infrastructure that could result if our Nation reduced the National Debt.
There are numerous explanations of ancient methods and reasoning for 1/10th taxation. Far too many for me to explain in relation to our Nations explanations in a post.
My opinion is 10 percent minimum/maximum guideline is fairer and just amount for both taxpayers and government. Hopeful to be reduced in the future if our Nation ever wises up to live within our means or pay down our present National Debt.
If Interested,
Read the Source Links below the article, an explanation of ancient methods of taxation, and previous posts. Also, a song that may help justify my reasoning why 10 percent should be both minimum and maximum fair and just for everybody.
You Decide
Fair and just taxation?
Wise or foolish government spending and management?
Capitalism or Socialism Incentives?
Regards and good will blogging?
Source Links
Chicago Tribune
Taxation in Biblical Israel
Previous Post
70 Percent Tax Bracket, or?
Explanation Why Ten Percent Tax Reasoning
Rudy u Martinka 
We agree that the national debt needs to be reduced.. and while the presidents before him contributed to it.. he by no means is any less responsible. Like most anything he does, he does it for himself and himself alone. The recent “tax cut” is a perfect example of fiscal nonsense that didn’t even work as he might have thought… s’cuse me, hoped to please his base.
Here’s another thing to consider since you are a Conservative. This idea that a political idea or a government program is some road to Socialism… c’mon.. that doesn’t even make sense. Socialism is a form of government. Since at the moment (and for the last 250 years) our Constitution represents our form of government it’s really a stretch to presume America is going to go with Socialism. What Conservatives are confusing is terminology.. “socialist” is not Socialism. But during the coming election it will be popular for Conservatives, in their current Trumpian way, to impose erroneous fear of some Socialism takeover to win votes. Bernie, Cortez, et al, are at best or worst, social Democrats as they tend to push social programs .. or socialist programs. No one is promoting the replacing of our Constitutional form of government… and no.. there is no such thing as “whittling away” or “chipping away” to replace with Socialism… just as there is no whittling/chipping away at the Second Amendment or any other amendment… although it makes for good populist screaming.
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Doug,
There are various degrees of socialism.
For example, the Progressive interpretations of the Supreme Court for government to take responsibility of many of the ills of society that in the past were employed by charities.
Perhaps, on the subject of taxation in the USA, instead of using Socialism as a comparison, maybe we should us the Biblical term and call the system, “Schemyisms” instead to describe the present system on not paying any taxes and benefiting equally from the system?
Regards and good will blogging.
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Not sure what “Schemyisms” even means.. unless it’s some new label. But here’s to the point of taxation.. . the theory is that for government to operate then government needs money. The most equal contributors… the group who benefits from government is the people, hence the people should pay for government to operate. Since it is the people who must provide for government to function then the people must have a way to do that… personal income. Altruistically speaking there should be no taxation on non-people. Now.. you might say to that, business makes a profit. Well… think free market here… company profits go to investors which in turn generally end up being real people, as income. You can set up percentages of income required as personal taxation amounts on scales as they relate to the current cost-of-living scale across the board.. and/or you can assign a flat percentage over what might be an acceptable cost-of-living expectation. For example… mandatory 20% of everyone’s earnings goes to income tax. If you are poor, 20% of a hundred bucks is a huge deal. So maybe you build in an increasing percentage as wage rises. A millionaire/billionaire paying 20% can likely pay for a financing a part of the military over a lifetime. Keep in mind the percentage is mandatory.. no allowable quirky little deductions for legal or not-so-legal deductions.
But we’ve set up a system that appreciates double-taxation and has accumulated over the years politically-induced public tax breaks for any old reason.
We’ve created our own tax mess and gross earnings disparities. My Republican roots.. non-Trumpian Republican roots… tend to not jump on this populist bandwagon of the rich being too rich and they have to pay “their fair share”. Free market capitalism means just that. It’s not about “we need to tax the rich”… they made their money and what’s wrong with that? What’s needs is across the board mandatory adherence to more equalized income tax.
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As a bit of a post-script to what I just said above… people are generally of the opinion the the acquisition of wealth equals acquisition of power and thus influence in society, which people generally do not like. Sorry.. if you have achieve power and influence because of your wealth… that’s not a taxation problem.
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Doug,
Not sure I totally understand your plan, but if I seem to think you may agree with the basic principal that everybody should psy tax if they share in the benefits of a community.
Regards and goodwill blogging
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Not so much a plan as an opinion from a person with no broad economic experience other than owning a business. Essentially I was pointing out a basic interpretation of taxation subscribing to.. you want government funded programs then that has to be paid for out of taxes levied against people only… and not non-people entities because any profits from business goes to owners who are (likely) people themselves. Collect tax that way.
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I see your point. Would work if everyone was honest and required to pay death tax as I suggested In other post. Problem is too many are not on taxes, in my opinion.
Regards and goodwill blogging
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Interesting issue for sure. Is there a fairer approach. As I think you suggest, reduce it 10 % or perhaps 15 % for everyone. There are a number of flat tax proposals that make sense. Of course, half of Americans don’t pay income tax either. Is that fair?
Blessings.
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Michael,.
Your comment “Of course, half of Americans don’t pay income tax either. Is that fair?”
It may be profound for this reason state in the Biblical Link
.” Those who pay taxes are in effect contributing members of a community rather than dependent members. ”
If you consider that less than half of Americans vote, or do not pay taxes, could be because of this statement in the Source Link
“Taxes were a prerequisite for those who wished to remain full members of the ancient Israelite community.”
It is the same as the reasoning in the Bible story of the poor woman who willingly contributed only a penny contribution, perhaps?
Regards and good will blogging.
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