The Congress has the power "To lay and collect Taxes, Duties, Imposts, and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States."
-The Constitution, in Article I, Section 8
Mike Huckabee on the FairTax
Working to slash your taxes!
The Libertarian Party is working every day to cut your taxes. By contrast, professional politicians from the other parties just want more of your money, and are busy increasing the size of government.
In the last few decades, the federal government has exploded in size. No area of your life or business is free from the meddling of politicians -- especially your wallet.
It doesn't have to be that way. With less government and lower taxes, you could keep more of what you earn. It would be easier to start new businesses, build new homes, and fuel stronger economic growth.
Just Defend Our Rights
Libertarians believe that if government's role were limited to protecting our lives, rights and property, then America would prosper and thrive as never before. Then the federal government could concentrate on protecting our Constitutional rights and defending us from foreign attack. A federal government that did only those two things, could do them better and at a small fraction of the cost.
How Can We Cut Taxes?
Instead of tending to the basics, government has grown into a bloated conglomerate of political services that gets larger every year -- with no end in sight.
For example, politicians spend millions of dollars to urge people not to smoke -- while spending more millions to subsidize tobacco farmers. They send billions overseas for foreign aid -- while the federal deficit swells. They spend millions to subsidize public art -- while working families struggle to pay their taxes.
Politicians also run trains, bail out savings and loans, construct houses, sell insurance, print books, and build basketball courts -- you name it! But the fact is, every service supplied by the government can be provided better and cheaper by private business.
Privatize And Cut Taxes
All over the world, governments are busy selling airlines, power plants, housing, and factories to private owners. Where inefficient government bureaucrats lost money and squandered tax dollars, hard-working private owners now make profits and create new jobs. Why can't we do the same thing in America?
Defend America: Cut Taxes
Military expenses are over $400 billion a year. A large percentage of this is spent overseas to defend wealthy countries like Germany and Japan -- who then wallop us in international trade. Let's take them off military welfare. We can defend America better and save at least $100 billion a year in taxes.
Stop Bailing Out Industry
No one has the right to cover his losses at taxpayer expense -- and yet wealthy corporations demand exactly that. The federal government has bailed out railroads, banks, and other corporations with your tax dollars. This must stop!
Replace Welfare: Cut Taxes
The bulk of your welfare tax dollars goes to pay the handsome salaries of well-educated welfare workers. The poor get little from government welfare except meager handouts and a cycle of despair. Let's get government out of the charity business. Private charities and groups do a better and more efficient job of helping the truly needy get back on their feet.
Why An Income Tax?
Before 1913, federal income taxes were rare and short-lived. America became the most prosperous nation on earth. The U.S. Government did not try to police the world or play "nanny" to everyone from cradle to grave. People took responsibility for themselves, their families, and their communities. That is how the founders of America thought it should be. And it worked. It can again!
It's Time For Action
Republican and Democratic politicians have refused to reduce the size or cost of government. So we need your help to build a powerful new political party to get the job done -- the Libertarian Party!
- Allows you to keep 100 percent of your paycheck, pension, and Social Security payments.
- Frees up the time wasted on filling out cumbersome IRS forms.
- Wipes out the income tax code and shuts down the IRS as we know it.
- Makes taxation of income unconstitutional by repealing the 16th Amendment.
- Exempts all taxpayers from federal taxation up to the poverty level, through a monthly rebate. Currently, this would exempt each adult from income or payroll taxes on the first $10,400 annually plus $3,600 annually for each dependent child.
- Ensures that all Americans pay their fair share of taxes. By replacing the current system riddled with loopholes and credits favoring special interest groups, the FairTax will ensure all contribute fairly. It will effectively remove the cap on social security contributions by high-earners and allow businesses to collect the taxes (as they are doing now with state sales tax) removing the opportunity to cheat on taxes. It also requires substantially fewer audits since the number of 'taxpayers' will be limited and greatly decrease compliance costs.
- Dramatically lowers tax rates for low-income and middle-income Americans. For a family of two adults and two children, the effective tax rate would be 0% with at $28,000 annual income; it increases to about 11% for those with $54,000 in annual income. The effective rate is about 17% at $110k; and it increases to 20% at $220,000 in annual income.
- Makes taxes visible by eliminating hidden income and payroll taxes in consumer prices.
- Enables families to save more for home ownership, education, and retirement.
- Protects and ensures the funding of Social Security and Medicare.
- Leaves unchanged the amount of money raised by the federal government.
- Makes American products more competitive overseas.
- The current system takes 67,000 pages of IRS regulations to describe and they don't even fully understand it themselves. In addition to taxes, the costs of compliance is a burden on business and an anchor on the economy. Therefore, like many others, I support a complete overhaul of federal taxation policy.
- I favor (1) the abolishment of the federal income tax, payroll taxes, and inheritance taxes, and (2) the limited use of tariffs and the Fair Tax, or similar national sales tax, that eliminates loopholes, does not unfairly burden those in poverty, and greatly reduces the costs associated with compliance and audits under the current system.
- I support a reduction in the size, scope, and power of government at all levels and on all issues. By reducing the functions of federal government to conform to the US Constitution, we will be able to dramatically reduce costs and reduce taxes accordingly.
- I support the prompt and permanent repeal of all capital gains and inheritance taxes, as well as the special privileges and deductions in the current code.
- I oppose all corporate and business taxes, which are a form of double taxation of the participants on the same income or profit. Further, it is well-understood that businesses don't pay taxes. As their costs of doing business increase, these costs are passed along to consumers. It is effectively a hidden tax passed on to consumers; I support full transparency in government including taxation practices.
- I support reforms that respect the rights and obligations of parents to chose among competitive educational services and provide for their children’s schooling. I favor private charity, endowments and scholarships and a phase out of all government controls. As long as the federal government is subsidizing education, I favor the encouragement of choice through vouchers or tax credits.
- I support an amendment to the Constitution requiring a super-majority vote on all tax increases, zero-based budgeting, and public efficiency audits for all legitimate government operations.
- I support, in times of declared war, a decrease in spending on social entitlement programs and the possibility of an increase in short-term taxation (when US states and territories are theatened) that will assist in paying for the war as it progresses. This will equalize the sacrifices of those at home with those called to fight upon the battlefield abroad. This approach will minimize the debt passed along to future generations and provide proper encouragement to think hard before engaging in or sustaining a war.
- I oppose the inflation tax imposed by current elected members of Congress. With out-of-control spending, the government is forced to print more money to pay for its debts. As more dollars are dumped into circulation, your hard-earned dollars are worth less. A dollar now has 4% of the buying power that it did when the Federal Reserve was created in 1913. Effectively, the taxpayers are being saddled with additional taxes to cover this debt. Only through responsible spending and the legalization of competing currencies (such as gold and silver) can we end the Federal Reserve's stranglehold on our money supply and begin to restore value to the dollar.
- No government tax authority should be able to seize the property of any citizen, or close a place of commerce, until the citizen or company has been convicted in a constitutionally recognized federal or local court. The tax authority should be required to pay the reasonable legal expenses of any citizen or company found innocent in such courts.
- As long as the income tax is in effect, I support the allowing citizens to opt-out of involuntary tax withholdings by employers - this will allow citizens to collect the interest earned until it is due and create an awareness of the amount of taxes that are paid. Further, I recommend this be paid every six-months on April 15th and October 15th; citizens should be keenly aware of how much they paid in taxes prior to going into the voting booth in November. Should a tax-payer fail to make payments on schedule, wages may be garnished and the tax-payer may lose their eligibility to opt-out of withholdings.