do it yourself FREEDOM

Impacts: Mind, Home, Work, Money

“Taxation which lessens the reward of the producer necessarily lessens the incentive to production; taxation which is conditioned upon the act of production, or the use of any of the three factors of production, necessarily discourages production. Thus taxation which diminishes the earnings of the laborer or the returns of the capitalist tends to render the one less industrious and intelligent, the other less disposed to save and invest. ” – Henry George

“To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.” – Thomas Jefferson

“Certainty? In this world nothing is certain but death and taxes.” – Benjamin Franklin

Today we accept that income tax is a fact of life, but this has not always been the case. Over the years there have been those to point out the simple obvious truth, that taxing income  counter productive and puts us virtually in the employment of the federal government.

There have been many alternatives presented to our elected representatives but for some reason taxing income before our employers can pay us has become normal. Unfortunately for us it also seems to be the most effective way to take our money. For example when you talk with friends during tax time do you focus on the total you paid or how much you got back?

Henry George (1839-1897) was an American economist that made great progress during his day on setting up foundations for taxation and helped defend the working class from early corporate impacts. In more recent years others have stepped up to take on the issue of unfair taxation.

One organization, FiarTax, is pushing for a national sales tax to replace income tax. The idea is simple. We still get taxed but we don’t get money taken from our paychecks before we see it Instead we are taxed when we buy things.

The effects are controversial because it is not known how this will help or hurt the economy. Would people stop buying because the tax is higher? Would large and small companies feel even more economic trouble? Would an end come to American consumerism? One thing is for sure, there must be hordes of lobbyists and politicians running all over Washington DC thwarting any impact serious tax reform movements like might make.

In the mean time, until some kind of serious tax reform is found, each of us can make it a point to take advantage of every tax credit and deduction we can. I’m not advocating tax evasion. I’m suggesting that with a little extra effort and possibly some professional tax advice each of can discover ways of lowering our tax exposure though our choices.

With some digging, research, and careful planning you’ll find that some consumer choices actually pay you back at tax time, like buying a hybrid vehicle, metal roofing, or solar systems for your home. Educating yourself and choose wisely and find those tax breaks so you can keep more of your money at tax time.

Take Action

• Learn more about the FairTax plan. www.fairtax.org
• Read  FairTax: The Truth: Answering the Critics by Neal Boortz and John Linder.
• Visit the IRS website and read the sections on tax credits and deductions. www.irs.gov
• Gather your tax documents and seek professional tax advice before tax time for planning advice.
• Keep good financial records of all expenses especially if you have a small business or work out of your home.