The tax code is punitive and corrupt, but the economic damage caused by a bad revenue system is just part of the problem.
Thanks to a punitive “worldwide” approach to taxation, we have needless conflicts with other nations, leading the United States to side with high-tax governments and persecute low-tax nations.
But the impact on civil liberties and constitutional rights may be how the internal revenue code does the greatest damage to America.
In part, this involves the loss of basic rights. Our Constitution, for instances, guarantees the presumption of innocence. But that fundamental freedom has been thrown out the window to help the IRS enforce a bad tax system. If the IRS decides you’ve done something wrong or not coughed up enough cash, you are guilty until you prove yourself innocent.
Now there’s a new – and very disturbing – development. A reckless federal judge has decided to let the IRS go on a fishing expedition of California real estate records because it is theoretically possible that some people haven’t reported information on their tax returns. Here are some details from a report at Forbes.
A federal district court judge has given the Internal Revenue Service permission to serve a “John Doe” summons on the California State Board of Equalization demanding the names of residents who transferred property to their children or grandchildren for little or no money, from 2005 to 2010. The IRS wants those names as part of a crackdown on what it believes is the widespread failure to file required tax returns when real property is passed between family members. …officials of California’s BOE said state law prohibited them from disclosing the information without a court approved summons. …With a normal summons, the IRS seeks information about a specific taxpayer whose identity it knows. A John Does summons, by contrast, allows the IRS to get the names of all taxpayers who are members of a certain group.
To put this in context and to understand how sinister this is, imagine if some agency of government decided that to comb through the records of all African-Americans because some blacks commit crime? Or they decided to investigate all Occupy Wall Street protesters because of the crimes committed by some of the campers? Or how about snooping on the private lives of all tea partiers simply because the government doesn’t like dissent?
We would all agree (hopefully!) that these steps would represent unjustified fishing expeditions. And if there is any justice left in our system, the courts would stop the government from infringing our rights.
But, for some reason, the Constitution gets thrown under the bus when it comes to taxation.
The answer, as you hopefully agree, is to rip up the entire tax code and replace it with a simple and fair flat tax. This video explains.
America already has a tax code that ranks in the bottom half of the “tax oppression index.” If we don’t fix the IRS soon, don’t be surprised if we wind up in last place at this rate.
[…] the IRS (with help from negligent courts) routinely violates legal protections and civil liberties of American […]
[…] the IRS (with help from negligent courts) routinely violates legal protections and civil liberties of American […]
[…] These problems all need to be addressed, along with additional problems with the internal revenue code, such as worldwide taxation and erosion of constitutional freedoms and civil liberties. […]
[…] These problems all need to be addressed, along with additional problems with the internal revenue code, such as worldwide taxation and erosion of constitutional freedoms and civil liberties. […]
[…] These problems all need to be addressed, but I also acknowledged additional concerns with the internal revenue code, such as worldwide taxation and erosion of constitutional freedoms an civil liberties. […]
[…] These problems all need to be addressed, but I also acknowledged additional concerns with the internal revenue code, such as worldwide taxation and erosion of constitutional freedoms an civil liberties. […]
[…] These problems all need to be addressed, but I also acknowledged additional concerns with the internal revenue code, such as worldwide taxation and erosion of constitutional freedoms an civil liberties. […]
[…] or at least shouldn’t – vitiate other provisions of the Constitution. This is why it is so disappointing that we’ve seen the erosion of key civil liberties such as the presumption of innocence and […]
[…] or at least shouldn’t – vitiate other provisions of the Constitution. This is why it is so disappointing that we’ve seen the erosion of key civil liberties such as the presumption of innocence and […]
[…] what’s happened to the First Amendment, Fourth Amendment, and Fifth Amendment in recent years, and considering what the President would like to do to the Second Amendment, […]
[…] The politicians combined a nightmarishly formidable taxation system, for instance, and afterwards motionless that enforcing a unlucky complement required a erosion of polite liberties and inherent freedoms. […]
[…] The politicians combined a nightmarishly formidable taxation system, for instance, and afterwards motionless that enforcing a unlucky complement required a erosion of polite liberties and inherent freedoms. […]
[…] The politicians created a nightmarishly complex tax system, for instance, and then decided that enforcing the wretched system required the erosion of civil liberties and constitutional freedoms. […]
[…] The politicians created a nightmarishly complex tax system, for instance, and then decided that enforcing the wretched system required the erosion of civil liberties and constitutional freedoms. […]
The FairTax is a better solution.
[…] Federal Court Ruling Ignores the Constitution and Gives More Power to the IRS « International Liber… […]
Dan: Would you care to explain how your “simple and fair flat tax” would absolve taxpayers from having to prove their innocence? That rule could easily be included in any new tax system. Wouldn’t there still be the need for an IRS tasked with making sure that taxpayers didn’t hide income or inflate their expenses? And can’t we change the rule without having to throw out the entire tax code? We all know that you’re in favor of a flat tax and not a fan of the IRS.. but the arguments you come up with are as off point as an environmentalist claiming that a snowstorm proves global warming is real.
[…] Federal Court Ruling Ignores the Constitution and Gives More Power to the IRS […]
By the way, I also love your work.
The unconstitutional taxation of US persons abroad, along with FBAR and FATCA has become a major concern for the US expat community. Many, including myself, are renouncing our citizenship. Still the process is heavy-handed on the part of the IRS. Too bad for the Californians. They still live where the IRS has a lot of powers.
The flat tax effect on the working poor can be mitigated with far less complexity than the current tax code, which is so labyrinthine that the working poor cannot take advantage of the deductions and exemptions due them without paying for the services of specialist accountants. The working poor would also be aided by the boost to the economy from increased time and money freed up by businesses who could fill out their tax returns over lunch hour.
With citizenship based taxation, and FATCA coming, plus all the non willful penalties (guilty until you prove your innocence) for failures to file FBARs, I am glad to see that the IRS is extending its efforts to families in America and not just expats…. LOL This is equal opportunity fishing expeditions. Looks like they are casting a wide net in California, that other “offshore” tax evasion haven. 🙂
Now, maybe some Americans might will pay attention! This isn’t just about foreign account tax avoidance” anymore.
Time to create a OVDI for Californians?
Hard to argue with these comments. Not sure I buy into the flat tax issue, with all this disproportional effects on the working poor, but something has to give. You think?
[…] – first IRS attacks U.S. citizens living abroad – now IRS turns sites to California: danieljmitchell.wordpress.com/2011/12/19/fed…— Renounce U.S. Citz (@renounceus) December 19, […]
Mr. Mitchell:
Thanks for this post – am a great fan of your blog. One of your links is to the FATCA issue. FATCA along with FBAR are reasons why U.S. citizens living outside the United States are actually considering renouncing US. citizenship. The compliance of being a U.S. citizen and the “jack boot” enforcement and punitive fines have simply made it too risky to continue as a citizen.