As the national debt finds its support in the public revenue, which must cover the yearly payments for interest, &c., the modern system of taxation was the necessary complement of the system of national loans. The loans enable the government to meet extraordinary expenses, without the tax-payers feeling it immediately, but they necessitate, as a consequence, increased taxes. On the other hand, the raising of taxation caused by the accumulation of debts contracted one after another, compels the government always to have recourse to new loans for new extraordinary expenses. Modern fiscality, whose pivot is formed by taxes on the most necessary means of subsistence (thereby increasing their price), thus contains within itself the germ of automatic progression.
Overtaxation is not an incident, but rather a principle. In Holland, therefore, where this system was first inaugurated, the great patriot, DeWitt, has in his “Maxims” extolled it as the best system for making the wage labourer submissive, frugal, industrious, and overburdened with labour. The destructive influence that it exercises on the condition of the wage labourer concerns us less however, here, than the forcible expropriation, resulting from it, of peasants, artisans, and in a word, all elements of the lower middle class. On this there are not two opinions, even among the bourgeois economists. Its expropriating efficacy is still further heightened by the system of protection, which forms one of its integral parts.
The great part that the public debt, and the fiscal system corresponding with it, has played in the capitalisation of wealth and the expropriation of the masses, has led many writers, like Cobbett, Doubleday and others, to seek in this, incorrectly, the fundamental cause of the misery of the modern peoples.
(Karl Marx, Capital, vol. I, 1867)
Since the unconstitutional passage of the sixteenth amendment in 1913, the US Federal Government has grown to the degree of continual deficit spending. It is not a surprising occurrence considering the insidious nature of such a tax to progressively increase as you earn more money through hard work, your government steals more from your family's pocket. This scenario of punishing self-reliance has the vast majority living on limited means thus a communist's dream come true. TheFiscals desire reinventing the Federal taxing system to be applied to various economic ecosystems as different levels of consumption taxes within each state. The individual states will collect these taxes with their respect Department of Revenues and apportioned with the Federal Government. The impact of lower or increasing such tax on purchases of products are less likely to cause a deep economic recession causing high unemployment.
All US, non-consumable, non-perishable raw materials such iron ore, aluminum, precious metals, rare earth metals, lumber, paper products, etc., are to be taxed at 5% of wholesale value by weight at the time it is palletized or containerized for the purpose of distribution in any manner for resale domestically. If exportation of non-perishable raw materials in bulk is purchased by foreign subsidiaries of American Companies, they will be invoice taxed with an additional export tax of 3% thus equal to 5% total tax on its wholesale value. These pallet taxes are to be allocated to the funding of the Department of National Defense annual budget. All consumable raw material grain harvests such as wheat, corn, rice, soybean, and refined sugar from farms receiving annual subsidies from the US Department of Agriculture for more than five years consecutively, will be taxed at 2% of the wholesale price per standard pallet or container unit for domestic distribution and consumption. The trigger for invoice tax is simple. Once a product is harvested, mined, excavated, palletized or containerized and weighed for distribution and delivery domestically or abroad, the respective tax is applied to the Bill of Sale or Bill of Lading.
NOTE: Produce not subsidized by the Congress farm subsidies such as apples, oranges, grapes, oranges, and vegetables: lettuce, tomatoes, asparagus, and potato farmed in the USA for domestic consumption is tax-free as well as all processed food, meat, and fowl.
Retail Invoice Tax
The Invoice tax applies to the factors of assembly in the Manufacturing process from Brand to primary vendors and Sub-Contractors to marketers to final packaging for distribution wholesalers to last Retail sale to the consumer at 2% throughout. The various Invoice Taxes have more economic flexibility to stimulate the US Economy than across the board Flat Tax proposals on wages. Progressives in both Parties believe they can have their cake and eat it too, taxing hard working Capital. TheFiscals are at odds with Republicans in name only 'RINOS' of the GOP when it comes to taxing wages. These are the specific politicians The Fiscals seek to disavow as the ‘OL' in Grand ‘Ol Party.
TheFiscals will call all the various invoice taxes are not to be confused with the "copycat taxes" explained later. TheFiscals' invoice tax concept is the only viable opportunity to replace the Progressive Income Tax, thus converting the IRS from a collection Agency into a reporting agency. The new Agency will be called the Federal Income Clearing House "TheFICH" (see homepage: TheFICH ACT)
By diminishing the Internal Revenue Service's police authority to audit and intimidate, the new responsibility of collecting all taxes will fall on all (50) fifty State Departments of Revenue. Keep in mind, the States already collect Sales tax and divide Real Estate taxes between Counties and Municipalities. All other taxes like Transportation taxes on highway tolls and traffic citations, trade licenses, and state employee payroll taxes continue unabated. Not to mention that the State also collects filing fees for Incorporations, as well as Civil fines of all sorts, including zoning violations, licenses, renewals, and the like. This transition is natural without disruption.
One must consider the harsh reality for Conservatives who do not heed TheFiscals warning: reinvent the American tax code by 2020, not a day, next week or a month next year, but today. Let all Consumers within the US Economy pay tax on lifestyle choices and luxuries, not wages. If not, the Statists amongst us will sell lies to the working class. They will join forces with their Socialist advocates and garner a Legislative Action for Value Added Taxes [VAT] witnessed in Europe. This popular tax on the factors of Production is very similar throughout the European Community. It has stifled Gross National Product at stagnant (1) One percent average for the last (30) thirty years. Why? The VAT is a supplementary tax on Personal incomes and Corporate earnings. The Value Added Tax (VAT) is coming to America the next the Democratic party has a majority in the United States Congress. Liberals will push hard to add this consumption tax to the total tax bill just the states of Illinois, New York, New Jersey California have applied Income tax to sales taxes. The question by then will national debate whether the Progressive Income Tax going to be "replaced" by Fair Tax, or will Invoice Tax and VAT Taxes be additional taxes added to the Federal Income Tax on the on April 15th, 2021. You decide.