The legality of paying income taxes - an argument for tax evasion?

[Crazedclerkthe2nd]

No one likes to pay taxes, that's for sure.

Lately, I've come across a number of lively tax debates on the web and something that comes up regularly with regards to tax evasion is a theory that income taxes are in fact illegal and do not have to be paid. I forget the basis for the theory but I have heard it repeated many times by many different people.

As I understand it, in the United States income tax was first charged as a means to fund a war effort, but after the war ended the taxes remained and thus every year on or before April 15, we have to file returns with good ol' Uncle Sam.

Now couple this with recent grumblings and complaints from people that the government is not spending their tax money the way they would like it spent and that it is not fair that they lose their hard earned money to government initiatives they may or may not support. Of course if income tax was optional, no one would ever pay it so that's not a realistic option in the slightest.

But there are those who feel tax evasion, principally by either underreporting, misreporting (by means of say, adding false charitable donations or inflating the amount of donations you actually made) or hiding your money in offshore tax shelters, is simply a means of protesting government misuse of collected taxes.

I feel that if you live in a place and you work in the place, you should pay taxes since the government is providing you those opportunities. Taxes are vital for governments and while I understand the arguments for NOT paying them, I see them as necessarily evils.

Let's say though, you disagree with how the government spends your tax dollars but you don't want to resort to tax evasion, how else can you complain? A letter to a senator or congressman doesn't hold much weight. A community initiative seems like a good idea, but you'd need to put a lot of time and effort into it to generate the kind of response you'd need to get the governments attention.

I think in the end, no matter where you live, one thing is certain: You have to pay taxes.

[Slytovhand]

I think in the end, no matter where you live, one thing is certain: You have to pay taxes.

Might be true of the USA, but not so true for Australia... over here, there is a 'loop-hole'. It's in quotes for a reason - you still have to pay. But .. it doesn't have to be the government to just throw into a big pool of cash to divvy up as they see fit! But my Google-fu isn't up to it at the moment.

As for the actual OP, yes, I had heard about that - income tax being illegal. A group took it to your SCOTUS for hearing, as they said it was unconstitutional... nothing came of it. (IIRC for all)

[jackfaire]

It's only unconstitutional if your being taxed without representation.

For example the fact I am taxed by the state I work in but not allowed to vote there means they are taxing me illegally

[Stormraven]

The usual arguments have to do with the Ratification of the 16th Amendment, and questions of Ohio's Statehood (as it was the 'swing' Ratification State). There is a slight point, in that, yes, Ohio was retroactively declared a State. And Retroactive laws are forbidden.

However, the number of States who have ratified the 16th Amendment are more than sufficient, so it's valid.

There are also arguments about the Income Tax applying only to the District of Columbia, but they're pretty obtuse, so I don't tend to bother trying to read them.

I'm no fan of taxes. I would happily work to repeal the 16th Amendment, and undo almost every other tax the government makes. But they are not illegal, and they're not unconstitutional.

[joe hx]

Income tax was unconstitutional until the 16th amendment. Before then the supreme court shot it down several times.

Ohio was retroactively declared a State. And Retroactive laws are forbidden.

That had to do with unfinished paperwork and other things congress had to do to approve statehood. Retroactive laws are typically forbidden in criminal cases (i.e. if you make alcohol illegal today, you can't punish someone for having a drink yesterday).

[Mr Slugger]

You know I'd be ok with a loophole that you could get out of paying income tax on the condition you could never get government assistance of any kind ever. No unemployment, no food stamps, no medicare, nada. The downside is that you'd just end up with a bunch of idiots who'd so they don't want to pay income tax, but then 10 years down the road they'll be crying cause they can't get some kind of government assistance because they've been out of work for a year or something.

But from my stand point I think that once the government gets a tax it's never coming off the book. You're paying it forever because after a bit they rely on it.

[Boozy]

Here's a legal explanation as to why the 16th Amendment argument does not hold water:

http://docs.law.gwu.edu/facweb/jsieg...axes/16thb.htm

[Jason]

Actually there is nothing in the constitution about "taxation without representation".

[Fryk]

I feel that if you live in a place and you work in the place, you should pay taxes since the government is providing you those opportunities.

How is it the government providing those opportunities, unless you mean only government jobs?

[Boozy]

Don't kid yourself, now. The government provides the infrastructure that allows businesses and homes to exist.

They provide water treatment, maintain roads, subsidize or provide hydro and gas delivery systems, pay for trash collection, provide police and fire services, and maintain a military to keep the King of England out of your face.

If you want to know what an economy (and your life) would look like without a working government and tax system, pay a visit to Somalia. Would you like to live and work there?

[Nyoibo]

Depends, do I get to be Warlord?

[MadMike]

No one likes to pay taxes, that's for sure.

True, and I hate having to give up a percentage of my income, and have the government waste a good portion of it. I understand that not all of it is wasted, and that it's necessary to maintain services and roads, but it doesn't mean I have to like it. Still, I'd rather be taxed that way than based on something stupid and arbitrary like "you own a house." At least income taxes (supposedly) are related to your ability to pay them. You have to pay the same amount they decide to tax your house, no matter how much or how little money you have.

As I understand it, in the United States income tax was first charged as a means to fund a war effort, but after the war ended the taxes remained and thus every year on or before April 15, we have to file returns with good ol' Uncle Sam.

Which goes to show there's no such thing as a "temporary tax", despite the scam that our fatass governor tried to pull recently. For those not from PA, our governor proposed a "temporary tax increase" to make up for the budget shortage. Understandably, the public outcry against it was quite loud. The whole reason we're in this mess in the first place is because people are losing their jobs and their money, which means they don't have money to buy things, which means the state loses out on money from sales and gasoline taxes. So the governor's solution was to take more from us of what he knows we don't have.

It's only unconstitutional if your being taxed without representation.

For example the fact I am taxed by the state I work in but not allowed to vote there means they are taxing me illegally

It's not just the states that do it. A lot of the cities and townships do it too. It used to be $10, which they took once at the beginning of the year. I work in Harrisburg, and the city of Harrisbug is not worth $10. I know, I used to live there. Worse yet, they jacked it up to $52. It was supposed to be $1 a week, which no one would have complained about, but something got screwed up, and for the first year or two they took it out all at once at the beginning. Some people who don't make a lot of money were losing their entire first check of the year because of that.

[jackfaire]

Property taxes are why I am hesitant to buy a home. I mean basically I buy it pay for the land it becomes mine and then I have to continue paying the government to let me live on it?

Seriously if they were coming by and mowing my lawn and cleaning my gutters and painting my house then I could understand paying them taxes on my home for this. However they charge a person taxes on it with the threat that if you don't pay for said taxes you will lose your home.

[Slytovhand]

So, can anyone tell me why this 'property tax' is legal? In Australia, it's 'Rates', based on the value of the house and land, but is supposed to be for the garbage, sewerage, and other utilities and services.

[Crazedclerkthe2nd]

So, can anyone tell me why this 'property tax' is legal? In Australia, it's 'Rates', based on the value of the house and land, but is supposed to be for the garbage, sewerage, and other utilities and services.

I'm in the U.S. and I think, at least in my area, property taxes are for the same purpose and calculated using the same basis (land and home value).