Wednesday, March 18, 2009

What are taxes?

The definition of taxes from Wikipedia -

[To tax (from the latin taxare: to estimate, which in turn is from tangere: to touch) is to impose a financial charge or other levy upon an individual or legal entity by a state or the functional equivalent of a state. Taxes are also imposed by many subnational entities. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labour equivalent (often but not always unpaid). A tax may be defined as a "pecuniary burden laid upon individuals or property to support the government […] a payment exacted by legislative authority."[1] A tax "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government […] whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name." ]



This means that in order for any individual’s tax burden changes to be determined, all government collections in any form and of any kind must be itemized and broken down per individual before compared to previous years total tax burdens. The taxes based on wages or other earnings collected by state or federal government are only a portion of the taxes paid by American citizens.

In other words, an evaluation of an individual’s tax burden must include any money collected by the government that in any way creates a change in the value of the dollar of any American citizen. Any additional taxes, fees or levies placed and collected by the government on the production, distribution or sales of fuels, agricultural products, or any item that will eventually be sold in the form of goods or services to the American citizen is a tax.


Let me provide an example.

When the price of fuel goes up, the value of the American dollar, in regards to purchasing fuel, goes down. $10.00 buys fewer gallons of gas at $4.00 per gallon than it does at $1.00 per gallon. When $10.00 buys 10 gallons of gas, it is worth four times more than if that same $10.00 buys 2.5 gallons of gas.

If the price of fuel were to go up by four times because of taxes collected by the government, then the government is responsible for devaluing the dollars spent on fuel by four times.
That devaluation then needs to be applied to the entire tax, fee and levy burdens on the dollar before any tax cuts can be truly claimed.

Washington is not concerned with being held accountable for these kinds of claims, because WE THE PEOPLE have not expected any accountability from our politicians. We have submitted to their will so many times that they are emboldened in their claims. They expect WE THE PEOPLE to accept their word as fact, because that is the precedent that we have set.

To make a claim regarding tax cuts is an American right. To run for the office of President of the United States under that claim implies knowledge of the subject. Enough people assumed that President Obama knows what he is talking about and believed that he was trustworthy enough to elect him as the President of the United States.

People liked the tone he took during his campaign of transparency of government. He told us we would know who was doing what and why.

Enough people have come to show concern about our current economic situation and the inevitable tax consequence that it is time for that promise to be kept. The government needs to open the books on all levies, fees and other taxes that have already been implemented, are being implemented currently and are proposed. That is only half of the solution. The other half of the solution requires national participation by WE THE PEOPLE.

While it is unlikely that all of the people of this country are going to actively participate, many can, should, but have not. It is time now for the people that have made America the most powerful nation in the world to assume the responsibility that comes with freedom and power.

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