The Impact of Unpaid Taxes on the Average US Citizen

While the prospect of not paying taxes appeals to some, the reality could be quite different for the average US citizen. This article explores the potential consequences of non-payment of taxes, from the perspective of both the individual and the broader social and economic implications.

Understanding Tax Liabilities

Before diving into the consequences of unpaid taxes, it's important to understand the distinction between legal and non-applicable tax liabilities. Not every American is liable for federal income tax, as corporations are exclusively subject to such levies. However, those who are can face significant repercussions for non-payment, much as a wealthy or famous individual might. Take for example, former President Joe Biden, whose tax affairs came under scrutiny for rental income discrepancies, or the infamous Donald Trump, who consistently reported losses during his presidency. Federal tax authorities, like the Internal Revenue Service (IRS), typically follow a three-step process: initial correspondence, escalating notifications, and eventually asset seizure, if deemed necessary.

The Broader Impact of Unpaid Taxes

The concept that everyone should contribute to government revenue through taxes is deeply rooted in history. The first record of organized taxation dates back to ancient Egypt around 3000 B.C. If taxes were abolished, the entire fabric of government and associated services would unravel. Tyrannical rule by force would likely take its place, leading to endless conflict over limited resources such as water and food. This highlights how taxation is integral to maintaining social order and providing essential services.

The Mindset and Spending Habits

It's worth noting that the problem isn't necessarily the taxes themselves, but the mindset of individuals. Even those earning upwards of $200,000 annually often find themselves unable to save much, as they tend to spend their money. This spending behavior underscores the idea that the issue lies more with personal financial management and the broader economic factors influencing it, rather than the inherent unfairness of taxation.

History of Taxes in the US

It wasn't until the Civil War that the United States introduced any form of income tax. The Federal Income Tax as it stands today was established in 1913, followed by estate tax, gift tax, and a myriad of additional taxes over the years. This proliferation of taxes is largely attributed to the growing size and scope of the government, a belief that increases in government size lead to broader benefits for all. However, the reality often contradicts this notion, as larger government frequently translates into higher tax burdens.

Addressing the Issue: Reducing Government Size and Reintroducing a Value-Added Tax

To address this issue, many propose a reduction in the size and scope of government. This would involve consolidating departments and the abolition of unnecessary positions. A shift towards a part-time Congress and a stronger military supported by a value-added tax (VAT) is another potential solution. By creating and enforcing a VAT, citizens would contribute to the system through the purchase of goods and services, supporting a leaner, more efficient government structure.

Conclusion: Non-payment of taxes has far-reaching consequences for both individuals and society as a whole. It is essential to address the underlying issues contributing to unsustainable government spending and to seek solutions that promote both fiscal responsibility and economic stability.