Column for Feb. 22, 2007

The abomination that is the income tax

Having just done my income taxes this year, I again contemplate the abomination of income taxes. Personally, I believe that income taxes violate the 13th Amendment to the US Constitution. Also, I firmly believe that we should repeal the 16th Amendment.

The North Carolina income tax is based upon the federal income tax system. Basically, it starts where the federal system leaves off, makes some additions and adjustments, and assesses a liability. It is unethical based just upon the idea that it is forced taxation upon one's labor. Non-compliance results in loss of property, legal action, and even prison time. In my opinion, it is forced labor to benefit others and akin to slavery. It is more insidious when you consider the idea that many do not pay their share of a tax burden and live to suckle off the labor of others by the government forcibly taking money from law abiding, tax paying, productive citizens and giving it to those who do nothing to receive their governmental milk from a fat teat.

Wednesday, I did our state and federal tax returns. Here is the part that is totally evil about the North Carolina income tax system. Did you know that if you got a refund from last year's taxes that the amount of your refund is considered income for the following tax year and therefore subject to income tax? If in tax year 2005 you got a refund of $500 (to make up a figure) from the state in 2006, you are supposed to claim an extra $500 of income for tax year 2006.

That is pure evil and double taxation. I pay my taxes with taxed dollars. The state takes and holds my money without any interest or consideration. When the taxes collected exceed the amount actually owed, I am due back the overage. Again, this is money paid above and beyond what I would owe. The state treasury holds this money for a year and does not pay interest on it. Then, I am supposed to be grateful to get a refund of my own money. That already taxed money is then considered income a second time and I have to pay taxes on it yet again. That is just plain unethical.

North Carolina has one of the highest tax burdens in the Southeast. We are getting as bad as some states in the Northeast, notorious for high taxes. I read some statistic that showed that Massachusetts has a similar burden percentage wise as we pay here, after all taxes are figured.

Where does it stop? The Beatles' song “Tax Man” is not all that far off. We pay the highest gasoline tax in the Southeast. We pay taxes on our income. If we invest that taxed money to make more money, we get taxed on the profit. If we buy retail goods with our taxed money, we are taxed yet again. If we save that taxed money, we get taxed on the interest. If we buy automobiles with our taxed money, we pay sales tax, a yearly property tax, and a yearly registration tax. If we buy property with that taxed money, we get taxed on the property. If you think you own that property, just stop paying tax on it for a few years. If you pass along your already taxed money and taxed property to an heir, it is taxed yet again.

We pay federal income tax, state income tax, sales tax, property tax, excise taxes, and the list goes on. North Carolina is more brutal in income tax enforcement and collection than the federal IRS. To top it all off, the state graciously taxes us on "income" that has already been taxed.

This is why I love the Fair Tax Plan. Information on that plan is available on the internet at fairtax.org. There are a few things perhaps not taken into account in that plan, but it is still far more fair than income tax. I would even be in favor of a flat tax, provided that ALL people pay it, regardless of income level.

I understand the need for taxes. What politicians don't seem to understand is the need for fairness.