Lone Accountant Takes On The IRS and Wins

I live in a state with no income taxes and can tell you it is a double edged sword. Sales taxes are higher and property taxes are outrageous, but as it is up to the individual as to what they buy, it is totally a voluntary tax of sorts. If you don't want to pay tax in this state, simply don't buy anything... problem solved.

The other problems identified could be solved relatively easily, though I doubt many here at ATS would appreciate the end result. If you eliminated income taxes entirely it would mean that consumer taxes would have to be allocated back to their originally intended purpose, rather than being used for pork & side interests.

For example, the smoking cessation & education programs the cigarette tax funds would need to be eliminated as that tax would be needed for schools & roads. Wave bye-bye to all the ridiculous envirnomental side projects currently funded by gas taxes, as that money would have to be used solely on maintaining & constructing our highways (which was its original purpose anyway.) Fines would go up for almost any violation of the law as that money would help close gaps in law enforcement budgets. There'd be no room whatsoever for any social programs such as welfare or Medicare, as those dollars are better used and more needed to close gaps in vital state processes. Technically speaking, Medicare, Social Security, and SSI taken from your paycheck is an income tax of sorts, unless that money is only used by you and you alone and the left overs returned to your heirs after you die, so that money can be taken out of the equation entirely (along with federal medical aid for anyone who hasn't paid into the system... or who has overspent on the system past whatever they put into it.) In times of war we'd see a return of war bonds & also increases on taxes for consumables to fund said war, which wouldn't be a bad thing as it would probably return us to the tried & true concept of claiming spoils from war to fund said war afterward.

All things considered, I'd have no problem with it. Unfortunately, as it would return virtually all of the responsibillity for caring for yourself & your own back onto the shoulders of individual Americans, I doubt we'll ever see it come to pass. People are too content with letting societies leeches suckle at the teat of the average American tax payer to wean them off of their welfare & national social reform budgets.

Let me see if I understand.

When you work and get paid by your work, part of that money must go to the federal government. Is that it?

In that case, what does the federal government do? What are the things for which it is responsible?

How would things work without a federal government? Can the USA continue to be the USA without a federal government?


Another thing, the articles says:

The accountant from Baxter, Minn., challenged the method the IRS has used for more than 20 years to tax shares and cash distributed by mutual life insurance firms to their policyholders when they reorganize as public companies.

How does that affect the common people? Is it something that will help most people or is it something that will only help 1% of the tax paying citizens?

Well it's one more victory. I'm sure There are many questionable things the IRS does. It's not just people don't want to pay taxes so they hate the IRS for that reason. My Dad is an accountant and he fought with the IRS for YEARS with one of his clients until it was finally settled. The IRS made a "mistake" and cost his client a good chunk of change that the client truly didn't need to pay. The IRS seemed to use the method of "If we put up a big enough fight and make it so hard on them that it's almost not even worth fighting for" They just played so rotten and nasty so the client would give up so they'd still make the extra cash. Who knows how many other people they could do this to.

[edit on 26-8-2008 by Dienekes]

So If you live in a state such as Oregon where I believe you don't have to pay sales tax and state tax...don't you still have to pay federal tax's??

Doesn't the Fed override state policies?

What about your military? I don't like what they're being told to do in the world, and the budget is extreme. Are you all supporting military cuts then?

Great win for all Americans!
We need to abolish the Fredral Reserve Act!

check out this book its full of the information we need to take our money & country back: www.truthaboutmoney.org...

reply to post by ImaginaryReality1984


Does taxation without representation mean anything to you. I have no problem paying taxes that go toward schools and public services and even a small amount going to administrators of such services, but I don't know where most of my tax money goes. The schools I grew up in are a discrace on many levels, one of my schools was using old tatered books and didnt have money for basic supplies and repaires. We were sent home a lot during the warm months because one of the high schools in town didnt have an air conditioner. Meanwhile all across town junkies sit in their homes/street and shoot up on uncle sams aka mine and your dime courtesy of welfare. Beyond that is corrupt politicians stealing, kickbacks to businesses and other governments, foreign aid(which I dont mind but we are up to our eyes in crap and were throwing our lifelines to everyone else) military expenses and classified expenses of any kind. Its all over the place but no one could tell you where your money is going. You dont get an itemized statement at the end of the year showing where you tax money went, and you should. Its a lot of money to fund a program like that but it would give a lot of people a decent government job sending all of this out.

reply to post by ImaginaryReality1984


The government takes in enough money on excise taxes,import taxes and federal fuel taxes to support itself.If the government would stay within their budget.Sending several billions of dollars a year to aid foregin countries is the reason they need to keep raising taxes

good, i'm glad i didn't have to come back to this thread to explain what SHOULD be common knowledge - many others beat me to it... i'm happy to see that a lot more people are realizing that there's no reason for taxes unless you just want to pay the government back for the debt THEY accrued from the first World War. personally, i don't appreciate working for free - giving 1/3 of my income each year to the government (state and fed) from each paycheck. i'm not even bothering to include the taxes they want us to file on a yearly basis... it's just a scam guys, there is NO law that says you have to do taxes! if you don't believe that, then you either haven't researched enough, or you choose to be patriotic and feed the wolves, maybe because you admire them and want to obtain power like them. God only knows why people choose to do what they do. i do know, however, that the light at the end of the tunnel shines eternally! i refuse to claim responsibilty for our (mis)leaders' actions any more!! let them clean up their own mess for a change!