Income Tax Elemination Question: PLEASE HELP Me Understand!

[Seanmc30]

I asked this before, but didn't get any response.

I am trying to understant what RP means when he says even when he gets rid of the Income Tax the Fed Gov. will still have ask much as it did in the 2000 budget.


My question is if RP gets rid of the Income Tax/IRS and does not believe that the Federal Gov. should own property...Where is this money coming from?


Where will the funds come from to pay for necessary Constitutional expendeatures? Most notably the Millitary?

I'm sure there is an easy answer to this question, but I just missed it...can you guys help?

 

[ItsTime]

It is simple, when you do not occupy 130 plus countries with 100s of thousands of troops you will easily be back to the spending budget of 2000. I am not an expert. That is just how I see it. I am sure someone will say something far better than this.

 

[m4ff3w]

Excise taxes.

 

[pcosmar]

Where will the funds come from to pay for necessary Constitutional expendeatures? Most notably the Millitary?

In my limited understanding of the Constitution, I can not find where we are supposed to have a standing Army.
There is provision for a Navy. I would even support an Air Force (by extension) for national DEFENSE.
As I read and understand it, If and when an Army is needed for DEFENSE, the president can call up the Militia. (Armed Citizens).
Having a standing Army and Global Domination was NOT the plan.

 

[weatherbill]

article 1 sections 2 and 9 of the constitution forbid direct taxation unless apportioned to the census...... the "income" tax on people's labor is not even lawful.
there are over 300 other taxes the gov. runs on.
according to the 1982 grace commission report by Ronald Reagan, not one penny goes to government services, but soley to absorb the national debt....in other words, the money form our individual income tax returns goes to central fed bankers...... so eliminate the fed and the fraud of the "income tax" and you have over 300 other taxes that actually pay for government to function..... think of all those many billinos that come in form gas tax alone, on every gallon fo gas........this central banker fraud has got to stop....only ron paul proposes to eliminate this scam of the central bankers,....thats why the media has so censored him, becasue the media is owned by the central bankers too........it's such a deception....it needs to end...ROn PAUL is our emergency rescue

 

[Goldwater Conservative]

I'm not sure if his numbers are right, but I think he's only talking about repealing the individual income tax, not the corporate income tax, although repeal of the 16th Amendment would get rid of both.

And as far as I know, his aim is to shrink government first before, say, switching to a national sales tax, since anything else would hurt the poor and working class too much, and as he correctly points out that would be unfair since they've been operating under a certain tax and benefit system their entire lives.

 

[Gilby]

The federal government can tax imports, and can charge fees (excises) for the use of federal property or powers. They can also directly tax the states, which must be done according to the census.

So, by reducing spending, and keeping these constitutional taxes, you can eliminate the income tax (which is currently being applied unconstitutionally).

 

[realitywiz]

I'm not sure if his numbers are right, but I think he's only talking about repealing the individual income tax, not the corporate income tax, although repeal of the 16th Amendment would get rid of both.

And as far as I know, his aim is to shrink government first before, say, switching to a national sales tax, since anything else would hurt the poor and working class too much, and as he correctly points out that would be unfair since they've been operating under a certain tax and benefit system their entire lives.

I believe Ron Paul has stated on numerous occasions that he wants to repeal the 16th Amendment, so that'd take care of all income tax. He has also stated that he wants to abolish the income tax and replace it with nothing -- which means there would be no national sales tax either.



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[Gimme Some Truth]

Doesnt the military get its money from corporate tax?

Roads via petrol tax?

 

[Tn...Andy]

Ron Paul doesn't point out the specifics, but really, a whole LOT of federal government would have to go....a WHOLE lot of it. ( and good riddance ).

The current income tax is almost getting to be a minor revenue point.....we borrow 2.5 billion per day.....which is also about the amount brought in by the income tax.

Social security taxes are another issue.....they bring in almost as much as the personal income tax.

IF Ron Paul manages to eliminate the income tax, social security and stop federal borrowing, you won't even recognize the new federal govt it will be so small.

Bringing the military home from around the world is a great goal, and I'm all for it.....but taxwise, as big and wasteful as our military is, it's a drop in the federal spending bucket compared to entitlement programs like social security, medicare, medicaid, etc. THOSE are your big ticket items in the federal budget. Get a copy and look.

 

[Colin]

That statistic doesn't seem to be right. A Washington Post blog says the correct year is 1995. It's not quite settled yet, but it doesn't look good. http://blog.washingtonpost.com/fact-checker/2007/11/ron_paul_faces_11_trillion_bud.html#more

 

[Goldwater Conservative]

Doesnt the military get its money from corporate tax?

Roads via petrol tax?

The money isn't earmarked that way, but it does work out to be about the same revenue as expenditure.

Bringing the military home from around the world is a great goal, and I'm all for it.....but taxwise, as big and wasteful as our military is, it's a drop in the federal spending bucket compared to entitlement programs like social security, medicare, medicaid, etc. THOSE are your big ticket items in the federal budget. Get a copy and look.

Great point. For those interested, take a look at this study by the Congressional Budget Office:

http://www.cbo.gov/ftpdoc.cfm?index=3521&type=0

Currently, total federal expenditures equal about 20% of GDP, with the Big Three entitlement programs (Social Security, Medicare, and Medicaid) alone accounting for about 10% of GDP, or half of the budget. By 2075, those numbers will have increased to 40% and 20%, respectively. In other words, there might come a day where we spend as much on the Big Three as we now do on everything.

 

[PigeonHole]

Ok, so the way I understand this is Income Tax & the IRS become abolished which leaves the govt with a lot less $ to spend. To compensate for the loss of money we end medicare, medicaid, social security, and stop occupying nations.

Once the money runs out after we ended the programs & got of of foreign countries then where will the federal govt get its spending money?

 

[nickcoons]

Ok, so the way I understand this is Income Tax & the IRS become abolished which leaves the govt with a lot less $ to spend. To compensate for the loss of money we end medicare, medicaid, social security, and stop occupying nations.

We don't need to end Medicare, Medicaid, and Social Security; just overseas spending. According to Dr. Paul, the amount that we spend overseas is more than the amounts of these programs, and more than what the income tax brings in. So if we cut the overseas spending, we could cover these programs, cut the income tax, and still come out ahead of where we are now.

Once the money runs out after we ended the programs & got of of foreign countries then where will the federal govt get its spending money?

What makes you think the money will run out? The income tax makes up about 40% of the federal revenue. The other 60% would still be there without the income tax.

 

[PigeonHole]

What makes you think the money will run out? The income tax makes up about 40% of the federal revenue. The other 60% would still be there without the income tax.[/QUOTE]

Well, where does the money to support the war come from? I don't know if it comes from a source other than income tax, if it does I"d like to know which program it comes from. I know we borrow a lot of money from other nations & that Ron Paul woudln't support that, so there goes another source of income for federal spending.

So where does the other 60% come from? A big chunk of it is probably money borrowed from other nations. I'd like to get all this straight even though he still is the best canidate running.

I haven't heard him say it yet but I think Ron Paul may tax the states. Does that sound feasable or unconstituional?

 

[Chickensoup]

What makes you think the money will run out? The income tax makes up about 40% of the federal revenue. The other 60% would still be there without the income tax.

Well, where does the money to support the war come from? I don't know if it comes from a source other than income tax, if it does I"d like to know which program it comes from. I know we borrow a lot of money from other nations & that Ron Paul woudln't support that, so there goes another source of income for federal spending.

So where does the other 60% come from? A big chunk of it is probably money borrowed from other nations. I'd like to get all this straight even though he still is the best canidate running.

I haven't heard him say it yet but I think Ron Paul may tax the states. Does that sound feasable or unconstituional?

Deficit spending (i.e borrowing money from the Fed) is what makes up the difference between tax revenue and actual spending. This is why the Fed is so devious. They don't want the Federal government to have an honest to god balanced budget. Government borrowing money means more profits for them in the long run and more indebtedness.

As far as the other 60% of the taxed income, there are many. Excise taxes, inport tarrifs, crap like Estate taxes etc etc. There are a ton of ways for the government to raise the cash but ultimately right now how much they bring in doesnt even matter because they can just continue to borrow the rest whenever they want

 

[dsentell]

I don't know for sure, but I know they get a hunk of tax off gasoline . . . probably alcohol and cigarettes as well . . .