Tags: Tax | Evasion | Congress | Economy

Our Corrupt Congress Causes Tax Evasion

Our Corrupt Congress Causes Tax Evasion

By    |   Sunday, 15 May 2016 05:43 PM

If a stranger walks into your house with a gun and says, “Give me your money?” 

That’s called armed robbery.

But what is it called when a politician walks into your house with a gun and says, “Give me your money?”

That’s called a tax.

To the victim or taxpayer, the economic effect is much the same. Is there a difference?

Theoretically, the first situation involves an involuntary taking, while the second is done voluntary by the taxpayer in compliance with lawful requirements. 

The problem is that Congress acts like a drug addict for spending money for political benefit, and raising taxes (or borrowing) so it can spend more money to keep up with its addiction.    

As taxpayers feel they are being increasingly abused, then the reluctance by taxpayers to comply grows. 

Where we now find ourselves in the United States is that taxpayers recognize the income tax system as a political and economic weapon being used by Congress for their benefit and against the taxpayer’s best interests.

The stifling oppressiveness Congress uses to enforce the tax law further justifies the taxpayer’s perception that Congress is utterly corrupt. 

Congress has been able to institutionalize and legitimize a massive fraud on the taxpayers by combing the income tax mechanisms with the appropriations processes. It’s a labyrinth of complexity covered over by secrecy so that taxpayers cannot understand exactly what is happening to their money.

It all works politically until at some point the frustration felt by taxpayers reaches critical mass and they psychologically move on to anger.  

What happens when people finally reach that “I’m mad as hell, and I am not going to take this anymore” moment?

They take action. Pain is one of the greatest of motivators.

It’s true that some people have an unusually low tolerance for the pain of paying tax.  The rest of the taxpayers with more normal levels of tax pain resistance may be annoyed to a greater of lesser extent, but they comply with paying tax with little ado.  They pay up and shrug it off.

But what happens when hundreds of thousands of taxpayers, or even millions, start exceeding their tax pain threshold.

There are only two alternatives. Either all these suffering taxpayers are delusional crooks at heart, or the tax system has become intolerable.

I think about it this way.

There is an intersection where the government constantly does road work and put of signal lights. If there is an occasional accident at the intersection, it’s reasonable to believe that the drivers are at fault. 

But what if there are an increasing number of accidents at this intersection, and as more road work is done by the government, the more accidents occur?  Then it is reasonable to see that the road work is the problem and not the drivers.

Why is this happening? Politician raises more taxes to spend more money on creating more accident causing roadwork since they see that is needed to get re-elected.

When corruption of every aspect of governmental operations becomes so pervasively systemic, as it is in the United States Congress, distrust of the government becomes prevalent and affects virtually every aspect of government functionality.

What happens then?

As the International Monetary Fund noted recently, “Widespread corruption harms the culture of compliance thereby increasing tax evasion.”

Taxpayers are not causing tax evasion by using foreign financial accounts and aggressive tax avoidance strategies. This sort of tax evasion results from an unremittingly corrupt Congress.

Denis Kleinfeld is known as a strategic tax and wealth protection lawyer, widely published author and creative teacher. To read more of his articles, CLICK HERE NOW.

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If a stranger walks into your house with a gun and says, "Give me your money?"
Tax, Evasion, Congress, Economy
Sunday, 15 May 2016 05:43 PM
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