IRS loses challenge to prove tax liability

If you don't believe the media is all in the liberal camp, then ask yourself why you didn't see this story plastered all over the news!

For the past 45+ years, the US government has been illegally taxing its citizens. That's right, the income tax is illegal according to the constitution. The IRS has never once been able to show the legal statute for forcibly collecting income taxes and finally, the people had their day in court and won!

But wait....this case really isn't going to change things now...or is it?

The IRS is reeling, fending off all potential legal challenges and not pursuing an appeal here. Why? Because they know that if this case ever reaches the supreme court, everyone in the IRS (and tens of thousands of supporting bureaucrats) will be out of work. They know they can't prevail, so its best to sweep this loss under the rug and hope not too many people hear about it.

What I predict however, is that the next congress will finally get their act together and pass the Fairtax proposal. This option should have been done years ago, but now the politicians have little choice. The victors of the aforementioned court case are hotly pursuing the IRS and will eventually get enough people interested that the IRS (your friendly neighborhood ---hood) will be forced out of business. Not that the USA needs the income from the income tax, but the politicians do. Its the best source of non-tractable, increasable, income they have and they don't want to loose the cash cow.

If the income tax is shown to be the fraud that it is, people will eventually demand its elimination and there will be a major up-hill battle to get it replaced with anything new. Therefore, by implementing the fair tax now, the politicians can protect at least part of their income dynasty, albeit, a much smaller portion.

The revenue dollars "lost" by the elimination of the IRS would be almost equal to the expenditures required to maintain the income tax. A 'wash', and therefore a totally unnecessary tax other than to control more and more Americans and give the government a big hammer to keep dissidents in line with. So its not a far leap to believe that once this fraud is uncovered, voters would demand its elimination and not accept any new taxation to take its place. Therefore, if congress wants to retain any power through taxation (its number one tool), then then some form of income tax replacement is necessary, and quick --- before the jig is up.

If you look at the various proposals, and what has the best chance of passage, its pretty clear that the fair tax is the big winner. The idea of the flat tax is good, but it leaves too many possible loop holes and will anger one large group or another. The flat tax would not be an easy sell since you'll be stepping on far to many toes. Additionally, since the Feds lost the battle of the amnesty bill because voters didn't believe congress would enforce it, so will they not believe that congress will keep to the spirit of the flat tax. Its easy to imagine this reverting back to the current tax system in a few short years.

The fair tax on the other hand doesn't give anyone any leverage. Its a level taxation field across the board. There are no deductions of any kind, for anyone, for any purpose. Rather than tax income, you tax spending. This eliminates the burden imposed on producing which kills the human spirit and prevents a lot of people from taking business risks (the cornerstone of the free market system).

While the fair tax will make it harder for congress to fool around with your money, they will at least maintain some form of tax revenue stream. They should be able to see that something is better than nothing.

Personally, I'd like to see the abolishment of all income tax and replaced with nothing, but if that won't happen, the next best option would be a consumption tax without loopholes to be exploited. Therefore, I think its important that our elected officials, and those seeking new offices in the next 24 months, be forced NOW to take a stand on taxation one way or the other. If they have courage, and really believe in the American Constitution, then they should be supporting the total abolishment of the income tax with no other replacement taxation. If on the other hand, they want to preserve the status-quo as much as possible, then they will support the fair tax.

Of course the liberals will take their usual stance and fight tooth and nail to maintain an unconstitutional income tax and tell you to just shut the hell up.

Take your pick.